Saturday, 9 July 2011

Getting a Housing Loan in Sri Lanka

Getting a housing loan in Sri Lanka can be a very tedious and a time consuming task. There are so many documents to produce and so many approvals to get that you might be forgiven for thinking it is better not to buy a house at all.
Looking at the advertisements in television you might think that it is something that can be done in two three days but it sure takes a whole lot more than that. It becomes worse if you have misplaced an important document or you have an outdated document. Some bank wants documents that are less than ten years old so they can be assured about the validity of the document. After producing all that they you need to pay additional charges for the registration and for lawyers. This can be done for an reduced price if you have some sore of connection with the lawyer, otherwise it will cost a considerable amount.
I thought finding a house for sale in Sri Lanka is a hard task, but it looks like buying it is even harder. In certain areas of the country its becoming hard to buy houses for even relatively rich people. Just do a quick search for villas for sale in Galle Fort and you'll know what I'm talking about.
I had a quick chat with a friend in real estate and according to him one of the main reasons is foreigners buying real estate in Sri Lanka as investments. Now I know that the government made a big deal about not selling land to foreigners, but as my friend told me the government actually needs these investments. Most foreigners and buying them and renting them out to other foreigners and more foreigners that comes to Sri Lanka better it it for our economy. Its just not that great when you're trying to buy a land or home for yourself.

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