Three Ways To Maximise Your ROI When Purchasing Investment Property Part 1
Property Investment is one of the oldest forms of wealth accumulation and should always be part of a larger portfolio of investments so as to balance out your risk. However, unlike other paper securities, the financial value of a house or for that matter any other investment property does not vary very much. Granted it may increase slightly over time or drop a little during a property slump, but this is marginal. That is why banks over time created a separate type of loan for real estate as opposed to other forms of movable chattels and this is the mortgage. This article series will highlight for you three ways to make more money and maximise your return on investment (ROI) when purchasing your property.
The first method is for you to increase your ROI by using leverage from the bank. When you purchase with your own money and then use the banks money to pay for the rest of a property, the return on investment would be the total cash flow minus the interest paid out to the bank and this would trump purchasing the property merely using your own money. So in other words, your return on...