There are many ways that we can apply to own residential property, one of which is buying with a mortgage. which means that the purchase of residential property that we make is funded by the bank and we have to pay it off every month until it is paid off (5 to 10 years). There are many choices of residential properties available, ranging from simple to luxurious. We can live in them directly or rent them out, as well as long-term investments. But behind that there are also disadvantages such as the price is too high, usually 2 times the actual price. Penalized if you have paid.
Is Buying a Property with a Mortgage Profitable?
- Thread starter Suba
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You are right, buying a foreclosed property will be cheaper at auction than if we buy directly from a developer with a mortgage, but unfortunately we need more money because the purchase is paid off immediately. In contrast to the way mortgages can be paid in installments every month.
You can arrange with a bank to finance the purchase. First of all you must first apply for a standby loan package or have your loan ore approved. The bank will then pay the property and you can arrange for the payment term with your bank.
Unless you are a very rich person, most people in my location buy property with a mortgage because properties here are very expensive. You should compare the interest rate of various banks. Some banks also offer cashback or other freebies such as an iphone to attract customers.
Well, I would never get involved in taking loans and offering mortgages for that unless I could afford to do so. I would also avoid taking loans in case if the other party is offering loans and trying to charge interest for that. because I prefer interest-free loans.
Mortgage is just good for buildings that you would use as residential. It is not meant for real estate investment. The interest on mortgages could swallow up the possible gains from the mortgage property.
It could be profitable if the value of property increases in the first place. This depends on the political and economical situations and conditions of a country in the first place.
I think that it can be a lucrative idea if the value of your property exceeds the value of your mortgage. So, it depends a lot on the kind of property you invest and the location of the property may also matter a lot.
