Investment opportunities with Mortgage

Investment opportunities with Mortgage

source: | Investment Illustration

Low Capital Online Property Investment Opportunities

The well-known property business offers maximum profit. But behind that, property investment is a business that requires relatively large capital. Even though a mortgage is a solution for property investment, a down payment of one million or two million is still not enough.

Then, are there actually minimal investment property investment opportunities? Of course there is!

Through the schematic equity crowdfunding, you have the opportunity to invest in the property business with promising prospects. The equity crowdfunding scheme is a crowdfunding system with the wider community as investors who fund the business of MSME business entities through stock offerings.

This share offering is carried out through an experienced online application platform, you can invest in property with capital starting from just IDR 1 million to get regular dividend benefits

You have the flexibility to choose which property business you want to inject funds according to your risk profile preferences. In addition, you have the opportunity to get capital gains in the future when the business grows more and more profitable.

Advantages and Disadvantages of Mortgage

Even though mortgages are debt-based, there are risks of loss and profit opportunities that can be faced by the debtor (lender) or the creditor (borrower). A complete explanation of the advantages and disadvantages of mortgages is as follows.

Advantages of Mortgages

Make it easier to buy property assets for creditors because you don't need large capital at one time.

For creditors (borrowers) who want to own a property to live in, a mortgage is a solution that tends to be strategic because the repayment of installments can be taken from monthly income.

For creditors who wish to invest by renting out a property purchased as a mortgage, this scheme helps to avoid depreciation in asset value because the property is occupied and can generate regular income.

Parties involved in mortgages are banks and PPAT. Therefore, there will be a process of verifying or checking the legality of the property before finally accepting the borrower's mortgage application. If it turns out that the property is fraudulent, the creditors and debtors will avoid the risk of major losses.

Mortgage loss

As a creditor, there is a risk of losing property assets if the settlement fails to materialize.

For creditors who use property for investment by way of leasing, there is a risk of asset depreciation. If the tenant defaults or does not maintain the property properly, damage can reduce its value and require additional costs to be borne by the lender.

Even though property rental values ​​tend to continue to increase, this collateral is not a liquid asset. Properties tend to take a long time to be bought and sold and cost money to maintain. So if at any time you need fast funds, this asset cannot be the main solution.

If a creditor applies for a mortgage that has a floating rate or interest whose value increases as the loan period and BI policies progress, the installments can swell if BI issues a policy to increase the reference interest rate.

By weighing the advantages and disadvantages above, of course we can make it clear to be able to join and invest in property with a mortgage scheme

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