Arcachon
05-03-20, 07:58
I did not know I was One, life is short if you scare THIS scare THAT be a homeowner.
The Risk-Taker
This is easily the riskiest strategy of all.
Basically the aim here is to own multiple properties over time.
Once they go up in value, use the value of the property to take a loan as your income.
Say you need $100,000 a year as living expenses. This amount is simply drawn down from a loan, therefore increasing your interest payments. Hopefully, rents are going up as well so that it covers the increased interest repayments.
Of course, you’d want your rental to be able to cover your interest payments which will leave you in a better position.
But do remember that there is a matter of sustainability here that you’d have to consider.
In downtimes of no tenancy, would you still be able to have adequate cover for your mortgage?
Note, this option is usually only available to people with quite big property portfolios.
https://stackedhomes.com/editorial/exit-strategy/?utm_source=sendinblue&utm_campaign=Blog_Weekly_Blog_Subscribers_-_05_Mar_20_0815&utm_medium=email#gs.yxd7fa
The Risk-Taker
This is easily the riskiest strategy of all.
Basically the aim here is to own multiple properties over time.
Once they go up in value, use the value of the property to take a loan as your income.
Say you need $100,000 a year as living expenses. This amount is simply drawn down from a loan, therefore increasing your interest payments. Hopefully, rents are going up as well so that it covers the increased interest repayments.
Of course, you’d want your rental to be able to cover your interest payments which will leave you in a better position.
But do remember that there is a matter of sustainability here that you’d have to consider.
In downtimes of no tenancy, would you still be able to have adequate cover for your mortgage?
Note, this option is usually only available to people with quite big property portfolios.
https://stackedhomes.com/editorial/exit-strategy/?utm_source=sendinblue&utm_campaign=Blog_Weekly_Blog_Subscribers_-_05_Mar_20_0815&utm_medium=email#gs.yxd7fa