most of the real estate buyers are having trouble buying real estate property because they do not have enough cash on hand to buy in spot cash basis their dream property. Thanks to the presence of end user financing out there, acquiring property even you do not have enough savings in your bank account made possible. Through these financing institutions, you can now acquire your dream home and pay them instalment up to 30 years depending on your capacity to buy, age, and bank records. These financing institutions gives different interest rates so it is advisable for you to look for the lowest rate giver out there.
The question you may want to ask is that, is it ok to really have a loan for a real estate property? My answer is definitely YES!
Let me explain to you this way. There are two types of debt. First is the BAD DEBT and the second is called the GOOD DEBT. Bad debt means you are borrowing money to buy things that depreciate or loss its value as the time pass by. For example, buying updated gadgets, cars, clothes and alike. These things will depreciate in value after buying them. And the worst thing is that when you intentionally borrow money just to have them even you are not needing them. The tendency is that you will pay interest and at the same time loss the value of your purchase.
On the other hand, Good debt is borrowing money for the purpose of acquiring properties that appreciate in value. For instance, putting up a business, buying paper assets and purchasing real estate property. Buying real estate property purposely to generate income is one of the wisest decisions you will ever make. For example, borrowing money from the bank to pay the balance after paying the downpayment of a pre-selling condominium in Baguio city and have them rented out right after the building is ready for occupancy. Purchasing a condominium at pre-selling stage will give you more affordable price therefore give you income from the property appreciation in a very little time. Borrowing money to pay the balance and have the unit operational for rent will give you passive income monthly. Make sure that you will use the unit or units you purchased rented out for short term so it will generate income more than your mortgage monthly, so you will be able to pay it together with your monthly city services, condo dues and management fee. You will also gain little passive income from it while it is paying for itself. This is a perfect investment with very high investment return, if you will give attention and focus in these figures you will only need to cash out for the downpayment of the property you are purchasing.
in my opinion, real estate in summary is still the best investment out there. It cannot be stolen and even with out effort the value still appreciates. It is really worth it borrowing money to acquire a real estate property.