Some clients ask - is it possible to get a loan to purchase property in Latvia?
The essence of the question is obtaining a loan "on European terms", at a rate of 2-3% per year, renting out an apartment, with returns of 5-7% per year, and getting "double" benefits.
First, ownership of a quality property.
Second, return on invested capital, in such a scenario you get a "plus" even after repaying the loan.
This option is possible, but only for local residents. Citizens of Latvia can obtain a loan on preferential terms - low interest rate, small down payment, buy an apartment in a good new development, and profitably rent it out.
But if you are a foreigner, you need to consider the following nuances.
The most important condition for loan approval is obtaining permanent and regular income in Europe - in Latvia, or in another European country. These can be employment income, business dividends, or rental income.
You also need to have accumulated a large down payment, 50-60% of the property purchase price.
Both the legitimacy of income and the legitimacy of the origin of the "down payment" will be carefully verified by the bank.
As for the interest rate, it will be high, approximately 5-6%. Therefore, you need to choose an apartment where the return will be 9-10%.
In addition, the rental arrangement will need to be coordinated with the bank. The bank reviews the rental agreement, assesses the reliability of the tenant. If everything is in order - it gives approval.
If all the mentioned criteria are met, you can try to arrange a loan to purchase an apartment in Riga.
If you wish to acquire a quality property, and personalized service is important to you, if you want to communicate with a real estate agent and lawyer in your native language, contact our company KOM-INVEST! We will be happy to select a suitable property, answer all your questions, draw your attention to important nuances, complete the transaction, arrange your residence permit, and manage your property.
For more detailed information about obtaining a residence permit in Latvia, see here in different sections.
Have questions? We look forward to your email or call!
Phone number: +371 29774775
Email: info@kominvest.com
Skype: KOM-INVEST