What makes property so valuable?
And even if you finance it – you still own it. The bank pays for the property, but while the bricks and mortar increase in value over time, the loan on the property stays the same… and it’s you that benefits from the swelling value. So why aren’t more people investing in property? Well, like most things in life, there’s a catch. In a rising market, when houses are shooting up in value, the banks are only too eager to lend you 80% of the home’s value in the form of a mortgage. Typically, you’d pony up a small deposit, hopefully get a tenant through the door, and if you did your sums right… you’d be making enough rent to cover the mortgage. Voila. A free house (albeit one with the regular management headaches!) Today’s economy has forced a huge change… but one that provides a huge opportunity for the smart investment (we’ll come to that in a moment) In today’s turbulent property market… where houses could dump 10% of their value at a whim… and banks are struggling to stay afloa
