When it comes to investing in real estate, you can ask yourself if it really will be a profitable business. Know the different reasons that makes the investment in a Mortgage Loan more advantageous than you can believe.
Five reasons to invest in real estate
- It is a safe investment: in the Chilean real estate market average property prices rarely decline. At the same time does not show great fluctuations because those who invest are not professionals motivated generally by the fear or the anguish: the buyers and sellers have other motivations.
- It generates a high capital growth: in the medium or long term, the average prices are maintained. Even in times of crisis, the real estate market is frozen.
- Produce constant flows of income: there are different ways of making a profit from real estate such as rent or surplus value. In turn, if you have a Mortgage Loan committed, you can cover it with this income.
- It allows a high “leverage”: for financial institutions, properties have always been a guarantee to carry out an operation. At present, they lend up to 90% of the value of the property, having as collateral the mortgage of the property.
- Generate an added value to the asset invested: the properties can be improved, expanded, remodel, divide, sublet, mortgage, producing a wheel of increase in its price and commercial interest.
A safe and profitable investment
Investing in a department or a home is a stable investment because you have your money in something tangible within a market that is constantly growing. Even when real estate has contribution costs, goodwill continues to be more interesting than the rise in the cost of ownership.
On the other hand, once you finish paying the good, when the VAT is eliminated, your property can be sold with a higher valuation, increasing its value. Buying a property is a good way to provide greater security to your family, because in case of inheritance, in most cases, the Mortgage Loan has insurance for disrepair.
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