Why You Should be Rich

Written by Posted On Tuesday, 02 January 2018 03:55
Why be poor ,when you can invest the little you have? Why be poor ,when you can invest the little you have? Propertypoa/Robert Mungai

How many times have you cried for lack of money? How many times?possibly you are thinking of making big or small money,but how ? The idea you have could be complex,or rather good but hard to implement. Nevertheless,one of the most notable and assured way of defeating being broke is investing in property. It is much simpler: at its most basic, you can instantly jump to propertypoa.com online portal and searching properties to buy or invest. True, there’s more to adopting property investing right than simply selecting just any property. Propertypoa a real estate and asset management firm will help you to remain afloat if you invest in real estate. Getting it even in real estate is easy. The benefits which comes with properties investment cannot be accessed from any other asset class. With properties you can buy old ones and renovate,subdivide, or as well spruce up the old properties. This can vary from just repainting including putting in new windows, to putting in new ceilings,doors and/or kitchen and landscaping gardens. The returns are always high and handsome.

It is easy to get finance

Investing in real estate is more lucrative,It is different from servicing a mortgage, all financial lenders hold property highly. As a standard,mortgage loans forms the bulk of bank’s business model; hence,lenders more often prefers lending greatly on residential property more than any other given asset class as shown by the fact that they will strongly lend a greater dimension of the value ( 95% being precise) and at lower interest rates compared to other asset class such as commercial property. As a result,it allows you to borrow easily and invest in property profitably than in any other asset class.

You can use leverage

when you are borrowing to invest in property likewise means you gain solid access to one of the most used,tested,oldest ,trusted and most compelling tool in the financial world: leverage. For example,if you invest in properties offered by propertypoa.com,you can borrow more since your properties will act as security and this more doable than using your share portfolio.

Financial organizations will more easily lend you 95% as per the value of your property,while for share portfolio this can only be 50% or less. Owning properties gives you greater borrowing power and this allows you to gain immensely from capital asset .

For instance,ideate two employees in the same occupation, on the same income, same assets and viewed to be of corresponding risk by the lending organization,the person wishing to buy a house may be able to borrow KSH 5M based on his financial position whereas his workmate may only be able to borrow KSH 2M to buy a portfolio of shares.

Assuming these both increase by 10% in a year, the person with the property has netted KSH5M in capital gain, while the shareholder has gained KSH2M. That’s a difference of KSH 3M in just the first year – and remember, the profit’s all yours. the greater leverage you can access is probably the best thing in regards to property.

 

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