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Post by TomT on Mar 29, 2004 23:14:31 GMT 1
I am interested in buying an apartment in Novigrad. How easy is it to get mortgages?
Thank you
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Post by Darko on Mar 30, 2004 20:45:09 GMT 1
I think it is quite difficult for foreigners. I hear English banks dont want to lend for buying in another country and Croatian banks don't lend to people who have job a broad.
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Post by Peter Ellis on Mar 31, 2004 20:49:39 GMT 1
Until this week, I would have said that they were not available. However, I have now learned of one possibility and there may be others. The root problem for local banks is the recovery in case of default one. The legal system is so clogged up that whereas if someone with a UK mortgage defaulted, their bank would have them out in 6 months, out here it could take years. What one Slovenian bank is doing, on a Croatian development they are partners in, is to get around the problem by what is effectively hire-purchase. The rate is a normal mortgage type one, believed to be about 5% rather than the usual silly ones associated with traditional hire-purchase. However, what they are doing is to retain their existing ownership of the property until the last payment is made. We are getting more details and will probably be offering the properties if we are satisfied that the buyers' interests are also protected.
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Post by Julie on May 14, 2004 21:08:06 GMT 1
Hi!! I just stumbled across this site and hope so much someone can give me some information.... or point me in the right direction. We visited Croatia last summer and absolutely loved every moment we spent there!! We spent a couple weeks there and didn't want to leave. My husband and I would really like to buy a small place there to spend part of our summers and as an investment (maybe to rent out when we are not there??) but we would need the help of a mortgage. No American banks will lend and and international lenders I've written to won't either. Do you think a Croatian bank will lend to us?? Could you possibly know of one that would?? I'm thinking it's shame if they don't... they would have tons of business. And as for people not making payments, couldn't they just reclaim the property (like they do in the US)?? We are interested in the Island of Hvar and Dubrovnik. Living in Kuwait, it would be so nice to know that we are going to spend every summer in one of those two places every summer...... I do hope that I hear from someone soon with good news
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Post by Peter Ellis on May 15, 2004 10:33:04 GMT 1
Hi Julie
No good news on mortgages just yet. The problem remains that the legal system is so clogged up with minor cases that getting a default case to court in order to evict a non payer would take years. Croatia has been somewhat bureaucratic in the past; if the law said that if someone owed even the tiniest amount and didn't pay, they had to be sued. The result is that the courts have thousands of totally uneconomic cases clogging up the system that need someone to go through and sling out all the stupid ones. Justice is only justice if expeditious. The courts should then operate more commercially. Only then will the economy open up in certain directions, once businesses, including banks, see an effective way of protecting any investment. We are still checking out the Slovenian bank end. That may prove the answer as I understand that the system for evicting what are effectively tenants, at least until the final payment is made, is different from that concerning seizing property in default of bank loans.
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Post by Julie on May 15, 2004 16:48:40 GMT 1
Thank you for your response.... Forgive me, but do I understand that I may go through a Slovenian bank for a loan for Croatian property?? Or are others waiting for this as well??
What about developers that would take a certain percentage now and then later the rest?? Are there those in Croatia??
Thanks!!!!!! Julie
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Post by Peter Ellis on May 15, 2004 21:22:14 GMT 1
It is possible to buy off plan, but it isn't always easy to totally secure your stage payments as tightly as our legal department likes to do for buyers. You also need to be sure that you will be able to make all the payments when they become due or you run the risk of losing everything. Yes, there is quite a lot of Slovenian business activity in Croatia.
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Post by dwright on Jun 29, 2004 16:38:04 GMT 1
I am interested in buying an apartment in Novigrad. How easy is it to get mortgages? Thank you
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Post by Owen on Jul 15, 2004 19:40:32 GMT 1
Hi
I too am interested in buying a property in Croatia (or Montenegro). I live in the UK, and have been unable to find any banks who will loan.
A couple of Austrian banks said they would in the Spring (they produced non-binding letters), then when I pursued the matter, they changed their minds, citing legal matters. So, can you suggest who does mortgages for foreigners, and preferably not at silly interest rates?
Many thanks for your reply in advance.
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Post by Peter Ellis on Jul 17, 2004 13:24:40 GMT 1
You might try the Royal Bank of Scotland or Abbey. There have been rumours that they were looking at them.
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Post by deedee on Jul 17, 2004 21:33:05 GMT 1
This is a fantastic site!
OK I just married a Croatian man and he took me there last week. We want to buy or build a place in Istria (maybe rent out two apartments and one for us), if there are any updates on how to go about getting a Mortgage from the UK that would be great.
We are both working in the UK.
Any advice will be useful. I will keep checking in
Good luck everyone
Dee
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Post by roy corrigan on Jul 21, 2004 16:01:06 GMT 1
Yes and finally some good news. My name is Roy and my wifes name is Sheilla we are English. We have bought a very large house with a courtyard and adjoining property it is 500m from the sea and town in Istra a place called Porec. We also love the country which is why we have bought there but have had alot of difficulty trying to arrange a mortgage to renovate and turn the large house into apartments for renting or selling. Anyone who is interested in this project can email us and we can send you the details of plans drawings and apartments that you might like, you can design the apartments yourself the sizes, bedrooms i.e. 1 or 2 also studio. we can also arrange morgage and loan on the property for perspective buyers. This is completely legal we own the property and have clear title which we bought for cash all documents have been through solicitors and notary. Please contact on the email address or telephone 07956 264436 and this is the Corrigan email address: corrigandoo@hotmail.com.
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narla
New Member
Posts: 3
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Post by narla on Aug 4, 2004 16:31:20 GMT 1
I was in croatia on completely unrelated business but got talking to some bankers there who mentioned the archaic way mortgages are handled at least from the local perspective. In essence locals can get mortgages on properties and as has been previously said here Slovenian banks are more upbeat than the Croatian banks.However a quirk is that not only do they have to collateralise the loan ith the deeds they also have to provide an unrelated guarantor , who should be under 40 ( if the mortgage term is 25 years) who would be liable to the payments should the owners default. Pretty backward thinking in a rising property market.But sounds like not a bad idea to be a guarantor....for a fee of course.!!
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Post by Graham Amiss - Bosmere Travel on Aug 6, 2004 11:04:15 GMT 1
If only there were that number of views in one hour Kaz. 665 is the number of views since March
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Post by Peter Ellis on Aug 6, 2004 17:42:04 GMT 1
Where did you see Kaz's post Graham? It isn't showing here.
Cheers
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