How can the mortgage benefit be maximized?

how to maximize your investment benefits through loans?

1. There are many advantages of high loans

Domestic banks have strict restrictions on individuals applying for housing loans, and ordinary people can only apply for loans of about 5% of the house price. At the same time, other collateral other than real estate will be required in China, and the high threshold such as background check has also become an obstacle for many people to apply for loans.

Unlike in China, banks in Australia have a much lower threshold for loan applications. In Australia, under the guidance of professional loan managers, banks are usually willing to provide 6%-8% of the loan amount to applicants. At the same time, the applicant does not need to provide other collateral except the house, and the loan period can be as long as 3 years, which provides great convenience for the applicant.

There are ingenious ways to diversify investment

Perhaps everyone has heard a joke: a businessman watches a monk fishing. The monk asked, "I have a basket of fish and a fishing rod to send to the donor. Do you want a fish basket or a fishing rod?" Without thinking, the businessman replied, "I want a basket of fish." The monk laughed and said, "Why don't the benefactor want a fishing rod? Don't you understand that it is better to teach people to fish than to teach them to fish?" The businessman replied with a smile, "I sold a basket of fish, and I can buy some fishing rods. I use one for myself, and rent all the rest. I can continue to buy fishing rods when I get the rent. I can even run a fishing resort with more fishing rods ..." The monk was silent.

Bo Jun smiled, but the reason is obvious. Diversified investment with limited funds can bring wider benefits.

for example, if you buy a property worth 5, Australian dollars at a time, you will lose any liquidity. If you suddenly find that another investment project or business needs capital turnover in a few days, you will have no available funds. If you choose a bank loan from Australia at the time of purchase, the total loan at that time is 5,*7%=35,. That is to say, the down payment at that time only needed 5W-35W=15W. Therefore, the capital flow brought by the loan will provide you with more investment options and potential investment income!

refinancing is wonderful

Let's look at another example of why we need a loan to buy a house: A bought a house for 5, Australian dollars several years ago, and then borrowed 35 Australian dollars from the bank. After several years, the property value has increased to 55, Australian dollars. If you choose to take a second loan, you will get another surprise: take our story as an example, the current house price is 55W, and the total loan of 7% is 385,. Subtract 35W from the current total loan amount three years ago, and there will be an appreciation of 35,. We can use the value-added funds to borrow from the bank to buy a second new house, or accelerate the repayment of your current property loan, or as the funds used for your usual business life turnover.

going back to the example we mentioned above, if you chose to use the $35, saved by the loan and paid the down payment for one or more houses, assuming that these houses have been appreciated to a certain extent in a few years, you will have more assets and more value-added parts that can be raised from the bank in a few years, which provides a feasible choice for our usual investment.