If you want to make sure that you will be financially steady in your future (especially if you are going to retire in a fairly short amount of time), then you will have to start thinking of ways in which you can invest money now, to profit later on. Although the economic crisis has been tough on the real estate market, the truth is that this is still one of the safest things to go for when it comes to investments.
Making a property investment will most likely mean that you will have to take a mortgage loan as well. Before you make any move though, do make sure that you understand the various types of mortgage loans out there, because this can influence a lot whether or not your property investment will actually turn out profitable.
The first and most common type of mortgage is the fixed-rate one. This one is suitable for those of you who value safety and steadiness, but it is not suitable if you want the very best rate on the market. The adjustable rate mortgage type is also quite popular out there, because it offers lower initial rates. However, if you settle for this type of mortgage, be prepared to face the potential risks as well.
Also, another type of mortgage is the interest-only one. In this case, you will have a pre-defined period of time in which you will be able to pay only the interest (and not the principal too). However, the rates for the interest can go up later on.
The “zero down” type of mortgage can also be quite popular among those who choose to go for property investment because it can increase the return rate for the investment itself. However, whichever type of mortgage you choose, be aware of its disadvantages as well and make sure that it is suitable for the type of property investment you will make (rental or not, for example).
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