Housing markets the world over are recovering from the crisis in 2008, and as a result, now is a perfectly good time for you to get involved in the industry, whether you’re looking to buy and then rent out (buy to let), or you want to flip some properties. You will of course need some business acumen, but there are few better investment opportunities available if you’ve got the financial means and some time to make things work. One of the first things that you’ll need to think about is how you’re going to finance the purchase of new properties, and we’re briefly going to cover that here.
Now, if you’re already a seasoned investor, then there’s a good chance that you’ve actually got the capital to purchase outright, meaning there’s no hassle and no interest to pay. However, this might not be a good option, because it means a significant portion, or potentially all, of your cash is tied up. Taking out a mortgage instead could mean that you can invest in multiple properties at once, and you have only a monthly commitment and more liquidity.
For most people looking to get into property, a mortgage will not only be the best option, but the only one. Working out your financial options in this area however can be tricky.
Sourcing the Right Mortgage
Now, you do have the opportunity to simply seek out your own mortgage and take it out. In some ways, this could be the cheapest option, because then your only costs will be the ones directly associated with the loan. However, this isn’t always the best (or cheapest) decision – there’s a reason that mortgage advisors are so widely used.
Essentially, using a mortgage advisor means that you’ll be able to find the right product for your situation, which often offers a financial benefit. They’re simply going to be better at scanning the market than you are, and crucially, they often have access to mortgages that are not available direct to the general public.
So if you’re about to take the plunge into the world of property investment, try to maximise your leverage by seeking loans rather than paying cash, and always hunt high and low for the best deals – you’ll add considerably to your profits if you do.
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