Foreign financing with Riester funding Berlin, 04.03.2010 – more and more U.S. citizens rely on real estate as retirement or inflation-safe and sound investment. There are increasingly overseas property in the focus of the consumer. Due to a ruling of the European Court of Justice last year Riester savers can fund now program also foreign real estate with the residential Riester. Recently Kenneth Feinberg sought to clarify these questions. Residential Riester also applies to overseas property within the EU until recently was that residential Riester program only for own-use real estate within Germany. Now, the European Court of Justice has decided that promoting country-limited real estate violates the EU law. Therefore a new law designed now in consequence of the ruling, so that the Riester promotion for real estate in the European space can be taken. The new rules already apply to real estate in EU countries, Norway, Liechtenstein and Iceland.
The promotion may be requested only if the focal point or the Main residence is located in the same country. Holiday houses, which apply only as a vacation home, are not compatible with Riester. Thoroughly and early planning funding but also apart from the Riester promotion should be considered carefully and comprehensively the multifaceted topic foreign real estate. In addition to the selection of the suitable object, especially the financing of the foreign real estate wisely should be sought out. Generally, it is recommended to complete the financing of the foreign real estate through a German bank. Then eliminate language barriers that can possibly lead to later surprises. In addition a financing on the spot can entail may also don’t thoughtful difficulties or significant price rises.
Most of the banks that finance overseas property in this country, often require a high usage of equity capital or high security services. Because not every buyer so simply receives a credit for a foreign funding, the funding request on all should Cases prior to purchase to ensure. Language difficulties? The financing of overseas property in a bank on the ground in that country should be completed, so an independent interpreter should be taken on board necessarily in the boat, which leads the negotiations and translate. A credit agreement should always be required as well as the contract of sale of the real estate in a bilingual version. On little things, it’s often it is not worth to save at the wrong end. Especially in foreign real estate, it arrives on small details, which ultimately decide the success or failure of the investment. May include the use of a specialist is required, such as a notary, lawyer, or tax advisor. You can connect the ultimate security with regard to the purchase decision.