Using a other peoples money or using financing is only one of convenience that can be used dakam invest into property. But apart from that there are many advantages of investment in property which makes it very attractive in comparison to other investments.
1. Cash Flow,
Cash flow is the money you receive on a regular basis on the money you invested in an investment. eg interest on savings and deposits are cash flow because it provides income for you. In property, the rent can be income or cash flow for you. The more buildings you can rent the greater your cash flow.
2. The value of your ownership of the home increases.
Value your ownership or rights to property investment financed from the concept of using other people's money was going to increase, far exceeding the debt or obligations. Person's ownership rights in an investment is known as equity. For example, if you purchase an investment property amounting to USD 100 million, which is financed by a bank of Rp 70 million, Rp 30 million remaining put your own money. So your ownership rights to the investment of Rp 100 million had amounted to USD 30 million or 30% of it. The right of ownership will increase in value because of debt repayments reduce liabilities. In addition, your ownership rights also increased due to rising property values. Your property value will go up due to inflation makes the price of goods and services has increased, including property. This is not only due to inflation rising property values, but also you have the opportunity to increase cash flow or your regular income by raising the rent money was in line with inflation. The increase in the value of this property can even increase your borrowing power. Banks usually be happy to provide additional loans based on collateral or property price increases. You can use this money to pay off the balance of the old debt, and the rest of the money from the loan can go in your pocket. Then to adjust to the new loan installment of rent income.
3. The opportunity to build a bigger building,
once you manage to pay off the debt, you will have more money to be allocated, for example, to make the property available as greater. Many property investment starts from a small building, but because there is rental income that could make cover monthly debt repayments, then make the property into a larger building became possible.
Is it hard to Get Loans For Investment Property?
The most difficult part of all businesses is getting the money to finance the business. People are still very difficult even to borrow from a bank business loan to start a business. Banks usually only willing to give loans only to businesses that have been running 2 years. This does not apply when you want to borrow money from the bank to buy a house. No matter whether you buy a new home for the first time or for the umpteenth time, the credit can be given by banks for house purchases to any. Also from the bank's home loan is also considered a type of credit risk is low.
Because the amount of the home loan repayments tailored to your earnings, the bank demkian assume that the debtor already has a stable income that can be used to pay the monthly installment. Then in terms of the building itself jaminanya namely, that we know the price continues to rise, it is no wonder that the guarantee is generally able to cover hutangnya.dan from way above investments in a country where there are many examples in seattle real esatenya are home or estate estate with simple shapes or fancy following example
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