Mortgages
The power of leverage!
Leveraging uses borrowed money or debt to increase the potential return on investment. Benefit from the capital growth of an entire portfolio by releasing equity from your property to fund the next opportunity.
Bad debt vs Good debt.
Borrowing money to purchase liabilities is considered bad debt because it does not increase current or future net worth. An example of bad debt is: a car lease or using a credit card to pay for your next holiday.
Whereas, good debt is when you use borrowed money to create value and increase your net worth. Mortgages and leveraging provide investors with a great route to build good debt through their property.
-
Taking out a mortgage can increase the return on capital invested; with full or interest-only repayment options, a mortgage allows you to purchase assets with borrowed money and less of your own.
-
Aside from potential higher return on capital employed, high inflation is constantly eroding the value of your debt.
-
Making sound investment choices, whereby you purchase below the market value and in areas with high capital growth prospects, can mitigate the risks associated with lending.
At Vestin Property, our mortgage brokers work to appropriately leverage your hard-earned capital whilst remaining conscious of increased interest rates; to increase your return on investment.
For further clarification regarding services such as mortgage, financial, or tax advice, we recommend contacting your advisories. .