Not everyone has an overflowing savings account that allows them to invest in real estate without an external lender. Hence, a loan to invest in real estate is quite common. By taking out a loan, more is possible than you might initially think. Provided you pay attention to a number of things. In this article we will go through what you need to pay attention to in order to approach real estate investing in the right way. You will not encounter any unwanted surprises.
6 things to watch out for when taking out a loan to invest in property.
You are now in a situation where investing in real estate is a serious option. For example, you have some savings, which form a good basis. By means of a loan, it is then potentially possible to make a nice real estate investment. But what should you pay attention to? Let's go through the points one by one:
- Repayment capacity: One of the most important factors for lenders to give you a loan at all is the repayment capacity. A lender must be confident that you are able to repay the loan amount + interest. And that within a previously discussed term. There are of course a number of points that give a clear indication of this. Think, for example, of the fixed salary you receive, any debts and other financial indicators. First of all, make sure that these are in order. That the financial picture is correct.
- Different interest rates: Then you will have to deal with different interest rates. This is because different lenders choose different interest rates. For example, to convince you to choose one party over the other. You should therefore always gather all the information you can. Who currently has the best interest rates on offer? And is this lender fundamentally reliable? These are all matters that come into play.
- Fixed or variable: When taking out a loan, you often have the choice between fixed and variable. Since a loan to invest in real estate will only be fully repaid years later, you have to deal with changing interest rates. So it just depends on what the current situation is. Is the interest rate relatively low? Then it's probably a good idea to opt for a fixed-interest loan. With a variable interest rate, there is a chance that the interest rate will rise. However, it is also possible that the opposite scenario applies.
- Detailed comparison: Perhaps the most important tip is to compare in detail. Put everything in order for yourself. A very handy tool to use for this is the Immotheker. The Immotheker provides you with honest financial advice, at any time in your life. For example, you get the chance to simulate your loan. It offers a unique insight into the reality that will result from your possible loan. You won't be better prepared than that!
- Leverage the leverage effect to your advantage: The term leverage plays an important role in relation to a loan to invest in real estate. What you want is for your loan to invest not to cost you more money than the investment itself will yield. That is why it is important that the interest rate paid is lower than the expected return on the real estate investment. That way, you will make a better profit. You let the leverage effect work to your advantage. You invest money in order to earn more money.
- New developments: Thanks to new developments, it is certainly no longer always necessary to opt for a loan to invest in real estate. For example, it is definitely worth learning more about Immotokens. These allow you to invest in the digital property rights of physical properties using blockchain technology. The good thing about this is that it is possible to do this from as little as €50. So you decide how much money you invest in this, without necessarily having to take out a loan.
Getting started now with Immotheker and Immotokens
Are you currently interested in investing in real estate? And then by means of a loan to invest in real estate or one of the innovative developments? Then the Immotheker and Immotokens are two interesting concepts to get started with.
Take a look at the Immotheker to make a free appointment. This will enable you to get a very clear overview of your financial plans. Moreover, you will receive honest advice from a specialist. Someone who knows better than anyone what you are facing and what you have to pay attention to. Just think about the added value of a financial plan. Instead of making a hasty decision, you opt for the smart approach. You honestly leave as little as possible to chance. In any case, you will have a better feeling about your investment.
And then there are the Immotokens, which are revolutionising property investment. Never before has it been so easy to invest in real estate for a small amount of money. This offers unique advantages such as:
- No loan with complicated conditions required
- Very limited risk
- Collection of rental income from a physical property
- Increase in value Immotokens
- Opportunity to invest in part of a large number of different properties
- Invest as much as you feel comfortable with
By choosing this route, you quickly get to know the sector. After a while, the returns on Immotokens will enable you to buy a physical property straight away. It is very easy to take this first step in a safe way. Check out which properties are available now and start generating rental income in the short term. Investing in Immotokens is not only fun and easy, but actually pays off!
