Here’s Why I Paid Cash To Buy My Home In France

This contributed article is written by Melody, a freelance Singaporean writer who lives in Europe. These are her views based on her property experience. You can read her articles about purchasing an overseas property here, and in this article here.

When I first wrote about buying a property in France, a common question I received was how I got the financing to pay for it. My answer is simple: I didn’t.

I emptied my savings to purchase that overseas property. It’s not that I didn’t try to get financing – I think no one would reasonably empty their bank accounts for a major purchase like this. Especially not an immigrant who hasn’t formally gotten their permanent residency at the time.

When you start exploring loan options with banks, the reality becomes painfully clear. Financing the purchase of an overseas property isn’t just “slightly harder” than paying for a home in Singapore. It’s an entirely different set of challenges. The questions get more invasive, the documentation list doubles, and the bank’s tolerance for ambiguity shrinks to almost zero.

Even with a clean credit and a stable financial profile, the moment you include “foreign property” or “I am a foreigner” into the mix, the goalposts move, and it can oftentimes feel like they almost disappear.

It’s not personal. Banks simply hate uncertainty, since uncertainty is bad business. They need collateral they can easily value, markets they understand deeply, and borrowers whose assets are traceable and liquid.

This is why I think many overseas buyers, even those with strong financial backgrounds, often end up as cash buyers. Not because it’s glamorous, but because the door to access financing is much narrower than most people assume.

In some cases, that option is like a shut door. Nothing feels worse than losing an opportunity because you don’t have liquidity like cash on hand.

Why I say: Cash is power

Many of my peers who typically invest in stocks and exchange-traded funds (ETFs) investments and are steadily building a retirement portfolio are shocked at my philosophy of holding onto cash.

But I say that holding cash isn’t about being conservative or missing out on investment growth; it’s about the flexibility it provides.

The truth is, when you’re looking to purchase property abroad, cash liquidity is one of your strongest tools. Your investment portfolios in exchanges often cannot be used as collateral for bank loans.

When it comes to lending, banks are rigid, and cross-border mortgages are limited; regulations can shift overnight. Having cash on hand allows you to move quickly when a good opportunity arises, without relying on approvals, exchange rates, or foreign lending quirks.

I’ve found that purchasing with cash means you can negotiate better prices, cover renovation costs immediately, and avoid being boxed in by financing conditions that might restrict the type, location, or size of the property you can buy.

This type of financing approach also lets you hold a property for its long-term value rather than being pressured to flip for short-term gains just to cover monthly repayments.

In short, cash liquidity doesn’t just protect your portfolio — it amplifies your options, giving you the freedom to be strategic rather than reactive.

My story on financing a French property

When I started looking at available financing options to purchase my property in France, I quickly realised Singaporean banks weren’t going to be much help. Most local banks don’t offer loans for European properties, and those that do come with high minimum values.

In addition, I wasn’t living or working in Singapore, which complicated matters further – any financing would likely require me to find a guarantor.

Then came French banks and loan companies. Some were willing to explore solutions with me, and one in particular took my case seriously. For foreigners, the typical ask by a French financial institution is for a 30–40% downpayment and a permanent working contract. Locals and PRs can get away with a down payment of only 20%. 

Initially, when I went through the numbers, I thought it didn’t make much sense. The interest that I’ll be paying doesn’t match the property value’s inflation for the area, and with a 40% downpayment, the bank barely makes any money on the loan.

So, to no one’s surprise, when the branch manager got my file, the loan was rejected.

Since this property was the dream starter home that I had been searching for nearly a year, I decided not to lose the opportunity and bought it fully in cash, an option that would not have been available if I kept my capital in stocks and investment portfolios.

That said, it was a nerve-wracking decision. I went from a ‘financially comfortable’ situation in my life to practically broke overnight.

But the benefits quickly became clear. Paying in cash allowed me to negotiate a better price, close the deal faster, and most importantly, remove the stress of monthly loan repayments.

Cash can be a strategy for younger buyers

Many young Singaporeans may believe that paying for everything in cash is a risky approach. But I have a different perspective when it comes to risk. You either risk immediate liquidity or you risk your cash flow during the entire mortgage tenure.

A mortgage, when accessible, comes with many benefits. However, in terms of overseas properties, where mortgages for foreign buyers are hard to come by, it becomes a liability and not a system you can rely on.

Younger Singaporeans can leverage cash payments differently – as a strategic tool to secure buying opportunities that may take longer to realise when you go through the framework of a financial institution like a bank.

1. Your negotiation power increases with cash

The unspoken benefit of paying in cash is having more negotiation power. Since financing tends to be a lengthy process, having cash on hand gives you the leverage of not having to wait for bank loan approvals. This makes you a more attractive buyer from the perspective of some sellers. And when faced with owners looking to let go of their properties fast, it gives you additional room to negotiate.

2. Using fully paid properties to unlock bank loans

Most local banks only care about collateral in their home base. This is where getting creative pays off in some areas. Having a fully-paid off property means you can use it for collateral when talking to banks for future loans, and any income generated from this property increases your net worth, so it’ll be a double benefit when the bank looks at your overall profile.

Some savvy investors use this trick to unlock mortgages overseas, increasing their leverage for multiple foreign property ownership.

3. Full cash flow during property ownership

When you buy overseas property in cash, every dollar of rental income or savings from not paying rent goes straight back to you (after taxes). There’s no monthly repayment eating into your budget, no interest costs, and no pressure to ensure the property covers its own mortgage. This gives cash buyers an enormous advantage: full cash flow flexibility.

You can choose to reinvest the surplus, save for your next property, or simply buffer your emergency fund. All without the stress of meeting fixed monthly obligations on a property in a foreign country.

And if the property needs repairs, renovation, or is vacant for a few months, you’re not operating under the weight of a mortgage clock ticking in the background.

Where cash is king

With all the benefits of buying property in cash, it also comes with caveats you need to look out for. It’s not an easy strategy to implement, since many countries have foreign buyer minimums that will make purchases difficult for most middle-income foreign investors.

Some countries impose a minimum purchase price for foreigners, often far above what locals pay. This can wipe out the advantage of paying in cash because you’re forced into a higher price bracket where rental demand may be weaker, or appreciation less predictable.

Markets like Vietnam or Japan, where foreigners can buy at local market rates, make cash investing far more viable.

Cash only stretches as far as the taxes allow. Nations with heavy stamp duties, non-resident surcharges, or compulsory legal fees can quickly eat into your capital earnings.

Some markets require long, bureaucratic approval processes for foreigners purchasing residential property, even if the transaction is full cash. If approvals drag on for months, you lose the main edge of buying in cash: speed. 

Finally, cash gives you freedom on the way in, but you need equal flexibility on the way out. Harsh capital gains taxes, restrictions on reselling, or a small buyer pool can turn what feels like a smart cash deal into a trapped asset. The best cash-friendly markets are the ones where you can enter and exit without friction.

Conclusion

​​Financing is, without question, the biggest barrier for Singaporeans eyeing overseas property, and given the direction of foreign property ownership policies by most governments around the world, it’s only going to get harder, not easier.

Between age-based loan restrictions, foreign-buyer requirements, reduced tenure, and the unpredictability of cross-border approvals, relying on a mortgage can sometimes derail the entire investment plan altogether.

Cash, on the other hand, isn’t just a fallback option. Used strategically, it becomes a tool – it buys negotiating power, accelerates timelines, and unlocks better long-term cash flow. Whether you’re securing your retirement home or planting the first seed of your overseas portfolio, the principle is the same: liquidity is leverage, and in foreign markets, it’s often the edge that makes the deal possible in the first place.

So if you’re serious about owning your first overseas property, study the market and see how much cash you need. It’ll be a much smoother ride than getting the purchase financed.