Financing options for foreign property as expat

ArphaRima

I decided to ask here rather than cold calling the bank and approaching this in the wrong way.

Aim
I am looking to buy an investment/holiday property in Asia. Mostly with cash, but will need another 150k in short term financing (about 8 months).

Background:
I am an expat earning an excellent salary but offshore (legitimately). I hold a BOI Ireland and BOI UK account but they have seen limited use in recent months. I have in the past held significant loans with both banks that I repaid in full well ahead of their due dates. I can get proof of earnings and show the contract I hold with an Irish employment agency.
-I have no debts
-I have no mortgage/property assets
-I hold shares in Ireland

Options:
Mortgage in Ireland
Unsecured loan in Ireland
Expat Mortgage/unsecured loan

Can anyone suggest a course of action I can take?
Who is likely to lend me this sum of money and under what terms?

roro2

You're options in Ireland are going to be very limited. A mortgage won't work as they won't take the foreign property as security. An unsecured loan of €150k was just about possible in the boom years if you earned a multiple of this sum and had other assets. You're only hope would be a loan secured by your Irish shares, but they'd have to be blue-chip, worth €300k+, and even then I'm not sure what banks (if any) will lend against shares at the minute.

Marcusm

When you say Expat (Offshore), what does this mean? Do you mean someone

who mantains a residence in Ireland but whose only job is offshore (such as shipping, oil & gas) but the proceeds of which are sent to Ireland and generally spent there or
an Irish citizen resident and working abroad who only maintains an Irish account for limited purposes?

Int he second set of circumstances, I imagine the likelihood is close to zero as they can neither take effective security over the property nor have sight or control of your employment income. Speaking as an expat, I find it was better (nowithstanding maintaining Irish accounts and credit cards) to relocate main banking relationships to a bank specialising in my own locale.

Do you have any other banking relationships who could provide an introduction or a guarantee? Eg if, as an expat, you use HSBC in Jersey, you can leverage this into local currency borrowings in many Asian countries.

ArphaRima

Yes you are both right in saying I maintain no residence n ireland. I keep my Irish account healthy but inactive. My salary is paid abroad into a local bank but I am moving to an international expat bank soon.

My issue is just getting this short term loan. I only need it for a few months and I can prove my income and income history. I just have nothing to secure it against.
My Irish shares are closer to around 100k with an Irish pension also but that's untouchable.

I'm not convinced my bank or others will be pleased with the level of traditional security I present them.

Even internationally as an expat without a history what kind of loans are available?

I'm thankful I can pick your brains so throw any possibilities that come to mind!

Marcusm

Apologies, I didn't see that you'd replied. Frankly, I think you have no real options other than with whichever local bank you are currently using. If your short term need is due to seasonality of income (bonuses), they will likely be best placed to decide whether to lend on that basis if they have been seeing the lumpy income coming through in the past. If it's from an asset sale, try to use that asset to raise the funding but that would most likely be from the country in which it is based and will be expensive. Likely, you will have to wait until you are liquid!

roro2

Marcusm wrote: »

Apologies, I didn't see that you'd replied. Frankly, I think you have no real options other than with whichever local bank you are currently using. If your short term need is due to seasonality of income (bonuses), they will likely be best placed to decide whether to lend on that basis if they have been seeing the lumpy income coming through in the past. If it's from an asset sale, try to use that asset to raise the funding but that would most likely be from the country in which it is based and will be expensive. Likely, you will have to wait until you are liquid!

Agree with this. I've no idea what financing conditions are like where you are but I wouldn't waste my time with a bank in Ireland for something like this.

ArphaRima

I suppose you're right. I'll call them up and ask, but I'm not holding much hope.

I guess I will have to research some of the expat banks.