Archive for July 2018

Simple Options for the Right Mortgage Options

Among buyers of apartments in the country and the region, who want to save their money, this scheme is common: buy an apartment on credit and rent it out so that the rent covers all payments on the mortgage.

  • In general, this option is possible, but it is worth remembering a few things.
  • First, the principles of grading the cost of renting an apartment and the cost of its sale are generally similar. In other words, if you want to purchase real estate in order to obtain the highest rental income, then be prepared for the fact that its original cost will be higher.
  • Secondly, in order for the rent to cover payments on mortgages, these payments should be small, and for this you need a long-term mortgage, which leads to large overpayments. And it’s not 20 years and in most cases not even 30 years, but more.
  • Third, be prepared for the fact that your apartment will be empty for a while, and in these cases you will pay for the mortgage out of your pocket. And such time will necessarily be, since it is hardly possible to meet lodgers who for 20-30 years live in one rented apartment. Tenants are changing, and new ones are not always promptly.

How is it profitable to rent an apartment in a new building?

How to choose a bank and a mortgage program?

Fourthly, do not forget that you will still need to collect the right amount for the initial contribution to the apartment. Now large banks do not provide loans for new buildings without a down payment (earlier one could meet such offers). The suggestions are there with the mortgage broker Geelong .

And now we will consider an illustrative example. To start renting a house immediately, we will need an apartment in the secondary market or in a newly commissioned building (preferably with finishing or finishing, otherwise you will have to spend a little more on repairs). To rent housing at a more favorable price, transport accessibility is important. But apartments with good transport accessibility are more expensive, and during our monitoring, suitable options were not found (when searching we were guided by the size of the initial contribution of 20%). Mortgage payments were still higher than rental income.

Therefore, we changed some characteristics of the search, more precisely, lowered the requirements for housing. As a variant, new buildings were considered at the construction stage, as the prices for apartments in such projects are lower. Here is one example. In the LCD in 5 km from the Ring Road you can buy a one-bedroom apartment with an area of ​​39.95 square meters. m for 2.7 million rubles. Corps is at the initial stage of construction, delivery is planned in a year and a half (at the time of writing the article.

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