Re: Intesting in properties overseas - Posted by RobH_WA
Posted by RobH_WA on August 26, 2003 at 23:30:27:
I would strongly urge you to get your loan(s) denominated in the currency in which the asset(s) are based. You have only to look at the USD/Euro FX rates over the last few years to see what exchange risk can do. Managing an overseas investment is difficult enough without adding FX risk.
This may be done through a US bank if they have retail operations in that country. However, there is no guarantee that they will be competitive on rates. If you want to deal with a US bank rather than local lenders I suggest you start inquiries with Citi, as my guess is they have the widest European network.
In terms of entity I would also suggest something appropriate for local conditions. If the asset is based in Greece use a vehicle that conforms to Greek law and practice.
Lastly, question everything. Dont assume that loans are made for 15 or 30 years. Dont assume that fixed rates are available. Learn the tax implications (US and local). Etc, etc, etc
For any further assistance I suggest you will have to identify which country you are looking at.