Raising Finances
Property investment comes with a variety of projects and activities. It’s only right to keep your finances in check and have a strategy in order to attend to all its needs.
Mortgages
When it comes to financing you can either opt for commercial or buy-to-let mortgages.
Commercial mortgages, as its name implies, are used to finance the acquisition of real estate other than your own house while buy-to-let mortgages are usually for those who want to purchase a property as an investment and rent it out. They can’t be used by those who want to share a home with a live-in landlord.
Mortgages are types of plans and securities that come with plenty of trust. Taking a look at interest rates, minimum deposits, a business’ credit history, and track record can help you determine if it’s a deal worth pushing through.
Bridging Loans
One common source of funding for property developers is bridging loans.
A bridging loan can be utilised to complete the purchase if a property investor needs to move quickly and buy a property before the money is released from another property that is being sold.
Bridging loans typically have a shorter term than other loans. They must be returned within the specified time frame and serve as a financial “bridge” between other longer-term financial possibilities.
Your bridging loan will become a costly kind of borrowing if your project doesn’t go as planned. Before choosing one, make sure you understand them.
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