How to Escape Renting and Become A Villa Owner!03 January 2020
Ownership of the villa has advantages such as added value every year and equity benefits where you can guarantee your villa. The difference between the debt you borrow from the bank and the increase in the value of the property you own is known as equity (which is the key to multiplying money in the real estate sector). Over time, the value of your equity will move faster than your loan. This equity is a financial asset that is useful when you want to buy an investment, start a business or do financing for other purposes.
If calculated more carefully the tenants of the villa will lose the "value" of the money spent when renting a villa. For example, property prices that soar over time will go hand in hand with villa rental prices that continue to rise. Even though the villa is still in the same location and size. As a result, you will find it difficult to have savings.
Meanwhile, if you pay the mortgage every month, the value of the money spent (although slightly larger) will be equivalent to the benefits of capital gains each year.
But the price of freehold villas rises every year, often exceeding wage increases, making it increasingly difficult for people to collect down payments for villas. This makes more people choose to rent a villa than own a villa.
So how can prospective buyers who face rising villa prices and high loan debts and other living costs, leap owning a villa to invest? The answers are as varied as the circumstances of each potential buyer. For many people, down payments are a major barrier to villa ownership, while others struggle with credit problems and some face an affordable shortage of ownership in their area.
Here are some suggestions and considerations from experts about your dream of investing in the property sector:
Start Saving Now
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The best advice for villa buyers in the future is to start saving as early as possible. If you consistently set aside a portion of your salary, you can save a down payment that will be there when you are ready to buy a villa. It is important to reduce your expenses including switching to a smaller cable package or finding vacation time with a sufficient budget, it looks small but at least it can spray the money into a savings account as your down payment for investment.
The amount of monthly installments is determined by the price of the down payment you pay. Many also end up feeling unable to because the price of installments often goes up. Therefore you have to pay quite high at the time of Down Payment to feel light when repaying.
A Loan to Invest at Low-interest Rates
Photo by Mortgage Group
What happens if you cannot save (a lot) for a down payment, but you prefer to convert it to monthly installments?
Low down payment loans or no down payment. This is not the right solution because you will likely be charged a higher interest rate, but this can help you get a villa faster. Consider a low-interest loan offer.
Start Learn About Banking Mortgage Conditions
Photo by The Balance
Currently, there are many mortgages from various types of banks that offer mortgages with various advantages. Mortgages are now diverse both from conventional and Islamic banks. Conventional mortgages usually make cheap payments in the beginning, and Islamic bank mortgages tend to be expensive in the first payment, but are fixed in subsequent installments.
According to the Experts, conventional bank mortgages are considered relevant for unstable financial conditions. As a simple example, a new couple who could be running for 2 years of a new life will experience economic development.
Thus the process of managing finances to realize the resolution you invest will be achieved without having to sacrifice your other desires. The resolution of owning a villa can be done by anyone who doesn’t limit someone in terms of profession, age, status, or gender. So, what are your choices? Saving money or KPR?
Hideaway Development helps you more easily in choosing properties for your future investment. We have available units for sale freehold in hideaway villas | uluwatu, bali and hideaway residence | ungasan, bali.
Don't hesitate to contact us about our investment products and services with safe investments in Bali Indonesia. We welcome your feedback, please send us an email at email@example.com.