I don't like the fact that most of my initial monthly payments on a home loan go to pay interest while my principle outstanding reduces at a very slow rate. Hence, I have decided to avoid taking debt to buy a property. I know that the goal is to have 5 real estate properties for the family by Dec 2020 and it is going to be tough doing that without taking any loans. But that is exactly the point. I want to own those properties and not owe money on them. We'll see where this decision takes me. This might mean that I buy land plots and get houses constructed as and when I have spare cash.
If you are in an area where interest rates are all time low and you can get a fixed rate loan, there couldn't be a better thing to do than take up a loan. But do investigate well before you invest as when it comes to real estate investments the most important three things are Location, Location and Location!
If you are in an area where interest rates are all time low and you can get a fixed rate loan, there couldn't be a better thing to do than take up a loan. But do investigate well before you invest as when it comes to real estate investments the most important three things are Location, Location and Location!
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