Countries with the most affordable mortgages

It will not be easy to rent out such an apartment, as tourists prefer to stay much closer to the city center, even though rental prices for this type of accommodation start at 55 euros per day. However, if you lower the rental rate, let's say to 15-20 euros, there will be interested parties, and even if it is not possible to fully cover the mortgage payments, it is possible to reduce them.

United Kingdom: Even for locals it's not easy

Banks in the United Kingdom offer low mortgage rates ranging from 2.5% to 6%, but obtaining a loan here is not easy even for citizens of the country. An exception is made for those who already own property in the European Union and can document their income, which must be at least 30,000 pounds (equivalent to 33.4 thousand euros or 2.3 million rubles) per year, as well as the origin of funds for purchasing real estate.

The maximum amount of the mortgage loan is about 50%, and the penalty for early repayment can range from 1% to 3% of the loan amount.

One of the current offers is a 39 square meter apartment in a new residential complex in the heart of Manchester, the second largest city in the country. It is offered at a price of 98,000 pounds (109,000 euros). If the bank provides a loan for half the value of the apartment for a term of 25 years at 4% per annum, the monthly mortgage payment will be equal to 288 pounds. The minimum rental price in this area is 80 pounds per day, so even if your apartment is rented out only 4-5 days a month, the rent will easily cover the costs of the mortgage loan.

Switzerland: Expensive, but profitable

In Switzerland, where land resources are limited, there are significant restrictions on foreigners buying real estate. For example, the residential area of the property should not exceed 200 square meters, and in order to buy it, there must be a quota available from the Federal Council in the canton where the purchase is being made, as well as permission from the local authorities for the transaction. Residents with a residence permit have a better chance, but even among them there are gradations - for example, only those with a permanent or at least one-year residence permit can buy housing for their own residence.

But here mortgage rates range from 2% to 3.5%, and loans are granted up to 60% of the purchase price, for a term of 5-10 years, and then they are extended, usually on more favorable terms for the borrower. For example, if we consider the purchase of a two-bedroom apartment with a total area of 50 square meters in the "Ermitage" residence, located in the popular ski resort of Le Diableret, at a price of 327,000 euros, then with an interest rate of 2% per annum and a loan term of 20 years, the monthly payment will be 993 euros. The rental price for such accommodation for tourists starts at 140 euros per day, so, as in the case of Manchester, even a very small occupancy is enough to cover the mortgage payments.

Marta Savenko

The editorial thanks Ekaterina Rumyantseva, Chairperson of the Board of Directors of Kalinka Group, and Julia Kozhevnikova, a leading expert at Tranio, for their assistance in preparing the material.