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Buying a house back home whilst working in Korea.
« on: March 26, 2012, 01:26:25 pm »
Well, to be precise, finishing a contract in Korea and moving back home to buy a house - that's the plan.

I was thinking after finishing my 2nd year here to move back home to England and use the money I've saved up over 2 years (plus a bit more) to put down a deposit on a house and get a mortgage. I'd then either move back to Korea or another country to teach, after say 6 months or a year, and rent out the house to help pay the mortgage.

My questions is: if I was to buy a house in England I technically wouldn't actually have a job at the time as I'd be between jobs abroad, so would this affect the chances of getting a mortgage? I have student debt but no other debts or bad credit ratings. Does anyone have any experience on this? It's probably clear I don't know very much about this so need to start some serious investigating....!

Thanks all!

  • Mandy33
  • Explorer

    • 6

    • March 01, 2012, 11:36:41 am
    • Gwangju
Re: Buying a house back home whilst working in Korea.
« Reply #1 on: March 26, 2012, 01:48:36 pm »
Hi!  My fiance and I have looked into it a little, as we have a simular plan.  It may be easier for you to apply for an expat mortgage, because you are right, if you have no job at home no one will give you a mortgage.  Plus you have to have the job for at least 3 months, I think.  The only thing that will then become a bit complicated is the whole process of finding a house, being there for the closing date, ect.  I don't know all of the details as to how this would work, but I am sure that folk have bought houses from abroad in the past, or expat mortgages wouldn't exsist! If any one else has some more insight or personal experience, I would also love to hear it!  I should also mention that we would also be buying a house in the UK.

  • Mark van
  • Veteran

    • 165

    • February 04, 2011, 10:55:24 am
    • Busan, Korea
Re: Buying a house back home whilst working in Korea.
« Reply #2 on: March 26, 2012, 01:52:36 pm »
Well I know that in South Africa you can have someone (like your father) to sign surety. In the event that you don't pay your father will. It's much easier for banks to approve homeloans this way.
Secondly, banks usually only give you money if you already have money (silly hey). So if you have any assets like a car they might be more inclined to give you a loan. But the big thing is you need to prove that you have an income, so that means showing recent payslips. Maybe you can go home on vacation and buy something while still employed in Korea.. but it won't be easy.

Renting your house isn't easy either. You need to have someone (preferably a family member) that can help manage it for you while you're away or you'll need to pay someone to do it.

Start calculating all the costs involved and determine whether you'd be able to pay off the mortgage. If you can afford it go for it! I think it's an excellent investment :)

Re: Buying a house back home whilst working in Korea.
« Reply #3 on: March 26, 2012, 01:59:08 pm »
I'm doing this right now. In NZ, though.

In my conversations with my bank manager, she said they wouldn't really consider it without proof of income and definitely not without a job. Of course it could be different for you. I would recommend getting in touch with your bank. They will have the answers you seek.

I'm home for now looking for a job. I'm not getting a house, just buying a patch of land in a good spot. I will probably go back to Korea in a year or 2 to get the cash together to pay it off quickly.