วันพฤหัสบดีที่ 1 มีนาคม พ.ศ. 2561

Financing Real Estate Investment in Mozambique

Property sales in Mozambique are somewhat of a mixed bag in terms of the amount of properties being purchased and those who can afford them. Getting finance to purchase property is quite difficult due to the high amount of poverty prevalent in the country, a situation which is not seen to be changing in the near future. Another important point to note in Mozambique is that the government owns all the land in the country; you simply mortgage the structure on leased land.

The actual options available to purchase property are severely limited, with the only viable choice being to mortgage.

Financing options

Mortgages are still the only real financing option in Mozambique, as in the other African countries. The lending criteria are quite strict and not many people are able to meet these requirements. You are able to secure finance if you have an adverse credit rating as the ability to pay for the purchase is more important than the previous payment history.

The different types of mortgages on offer include the following:

Fixed rate. This is a mortgage where the total amount repayable is worked out upfront, with a fixed interest rate. You are then expected to pay a fixed amount each month for the entire length of the mortgage. This is a great option if you are able to get a low interest rate at the time of signing the mortgage deal.

Adjustable rate. This type of mortgage is tied to the prevailing interest rate and so your monthly payments and the total repayable will vary. This is a tricky type of mortgage to commit to as with all the financial uncertainty at present the interest rates could fluctuate quite dramatically. Of course the plus side is that at times the interest rate may be lower than on a fixed rate mortgage. ฝากขายบ้าน

Mortgage help programs. These are specifically designed programs with the aim of assisting you in finding a mortgage. As there are a large number of these and they can change quite regularly, it is best to check them with your local financial institution to see if they can assist.

Pledged asset mortgages. This type of mortgage is a collateral form of financing in that you secure the loan with other assets. Through this method you don't need to use a deposit to secure the property but it goes without saying that should you default on the mortgage payments that you would then lose your collateral.

Other criteria that will be evaluated in applying for a mortgage include:

Your income.

Assets.

The value of the property you intend purchasing.

Your credit history.

Remember that as the government owns all land in Mozambique, you are only allowed tenure of the property and can own the buildings themselves. There is quite a strict procedure to go through to get tenure, however this is normally handled by the developers.

Additional Costs

Like most things in life, property financing in Mozambique can sometimes throw up unexpected costs. To counter this it is recommended that you not only open a Mozambican bank account, but also allow 5-6% over the intended purchase price to cover these additional costs.

---


ไม่มีความคิดเห็น:

แสดงความคิดเห็น