Is it profitable to take out a mortgage

Did you know that going into debt can maximize the profitability of your investment ? At Housfy Inversión, we explain in detail why it is profitable to take out a mortgage to buy an apartment. Invest easily and safely Knowing finances to invest well is a thing of the past. GET INFORMED FOR FREE Greater profitability thanks to financial leverage Going into debt to invest is very common and has a name: financial leverage . Investing with capital that is not ours allows us to access investment levels that we could not reach without having the necessary capital. In fact, investment experts talk about two types of debt : Negative debt is one that takes money away from us for goods or services that we cannot afford and that do not give us long-term profits. For example, financing a car or your orthodontics. Positive debt does generate benefits for us in the medium or long term. The clearest example is buying a home as an investment or financing a business. Leverage can also make the operation more profitable. The profitability of housing is the relationship between the annual profit and the money invested .

Advantages and disadvantages of financial leverage

These are, in general, the advantages of leveraging yourself to invest: You can make an investment even if you do not have the necessary capital . If you have enough capital, you can make more investments at once or access more exclusive properties. Even though the investment does not generate monthly cash flow , at the end of the loan you will own the property having invested much less money. The investment recovery time is reduced , since the initial outlay is smaller. For that same reason, a possible devaluation of the property in the long term does not affect you so negatively. As you might expect, financial Iraq WhatsApp Number Data leverage also has its risks and drawbacks: Banks offer worse conditions with mortgages for investment apartments , such as higher interest rates, less financing or shorter repayment periods. You must make sure that the rent covers the costs of the investment. That is, taxes (such as the IBI or the waste collection fee), community expenses and, also, mortgage payments. If the investment generates losses , with leverage these will also be greater.

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Look at the conditions of the mortgages

When requesting a mortgage , the bank distinguishes between those mortgages for a second residence, for investment or for a primary residence. Likewise, the entity offers different conditions depending on the risk it assumes when lending you money. How to calculate a mortgage of 100,000 euros easily? Mortgages for investment usually have higher interest rates . Therefore, it will be very important to negotiate more favorable conditions Benin WhatsApp Number List with your bank: Negotiate the longest possible repayment period . The longer it is, the lower the fees and the lower the risk. Get maximum financing , although rarely it will exceed 80%. In these cases, a mortgage simulator helps you do the necessary checks before launching your investment. It is online, very intuitive and totally free. This is the signal to apply for a mortgage We have very competitive conditions thanks to our agreements with banks I WANT TO TALK TO AN EXPERT.

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