Want to buy a real property – why do you need a loan?

People in Poland buy real property only in two known ways: by cash or by loan (or a hybrid of two ways). That’s a pity.

There is another, not well known way, which does not require much cash, creditworthiness and help from banks. In practice, it is available for everyone and offers large benefits.
This method is popular in Western Countries, especially in USA. In Poland, it is used by a small number of buyers/investors (about 0,01% of population). If governmental programs „supporting” real estate buyers (in fact, supporting banks) were replaced by this method, everyone would be able to buy a real property. There would be no housing problem in Poland and each investor could start own investments immediately instead of building the creditworthiness for years. This way is co financing by the seller.
Mortgage loan – there’s a solution…
As much as 10% of Poles has a mortgage loan. Some of them even few. Sometimes it happens that there are problems in paying them back. This is when a bank and debt collectors enter the scene. Often, after the end of an eviction, a debtor still has the debt (despite not having a real property) and the collector still processes the execution from earnings. It happens especially when the property’s value is lower than the loan’s value (e.g. the property’s value dropped or the loan was granted in a foreign currency, exchange rate of which increased).
However, not many people know that there is a solution even in the bank terminated the loan agreement (until the moment of the first debt collection auction or next ones if the property was not sold). And I do not mean the consumer bankruptcy, rather selling of such estate, even if its value is lower than the amount of the loan.
Ways of financing real estate purchase – why is it important…
When a professional investor plans to buy a real property, he considers to basic conditions – to earn already at the moment of purchasing and the way of financing the transaction. Of course, there are other factors, but two above are the most essential. As R. Kiosaki said – show me your way of financing the real estate or accept mine.
It’s all about to spend minimal own resources and to earn as high as it’s possible. A mechanism that can support this is financial leverage. It increases the profitability at lower engagement of cash. In general, it is used by banks for own benefits – however, an investor can use it for own aims and achieve absolutely a better profitability. In other words, this mechanism allows a faster return on invested money. A professional recovers the invested capital after maximum of 5 years.

Przeczytaj ten artykuł w wersji polskiej: http://www.businessmantoday.org/chcesz-kupic-nie…homosc-ci-kredyt/