How to choose a good mortgage
One of the first rules for choosing the best home loan is to know your needs to find your way among the various offers. The funding possibilities are in fact many, but only we know what the use we want to do is.
“Everyone knows the use they want to make of the mortgage requested, and knows their profile, their sustainable installment, the amount they want to ask for – is the opinion of Anedda. – All of this determines the type of mortgage that you can choose . For example, you can decide to advance much of the liquidity to ask only for a reduced amount to be repaid faster. Or on the contrary, you can request a higher sum preferring to preserve your liquidity to invest it perhaps in an alternative way and generate an alternative income that will at least partially offset the expenses of the mortgage “.
Investing in the mortgage: how to do it
In fact, if you want to buy a house with a mortgage, you can choose to combine the loan with an investment that allows you to recover the installment, so that, on balance, the mortgage “pays for itself”. An alternative is precisely to finance the purchase by asking for an amount as close as possible to the value of the property, instead investing its own liquidity in order to generate an annuity that compensates the mortgage installments (for example by purchasing financial products of various kinds).
A second alternative is to use the house itself purchased with a mortgage, or renovated for rental use, as a source of income. By leasing it, in fact, you can get good returns that at least partially repay the expenses related to the mortgage.
Home for investment: buy it with a mortgage
What scenario is expected for those who want an investment loan? “The situation from this point of view is currently perfect, – declares Roberto Anedda. – The cost of financing is in fact very low and promises to remain so for a long time. Therefore, those who want to take out a mortgage to buy a house, or to renovate it for investment, can really incur costs which, net of the taxes and duties that would still be present, are lower than the final yield “.
Can mortgages therefore constitute aid for real estate investment? “Without a doubt, mortgages facilitate those who want to invest in a house, considering also that often those who buy from this perspective prefer small cuts with already low costs. Added to this is the advantage of being able to take out a diluted mortgage over time at very minimal costs, which are around 1% even on long maturities (20-30 years). If the house purchased is in a position to generate a return higher than this, the advantage is tangible “.
Auction home loan: things to know
One way to get a home at prices even 20-30% lower than market values is to participate in judicial auctions . Obviously this type of purchase is not risk-free: once purchased, for example, the property may not be immediately available. Of course, then, the award of the asset is not at all obvious.
Net of these measures, however, the amount necessary to buy a house at auction could be really contained if we consider that in addition to the discount on the market price there are also appraisals and expenses at zero cost, given that they are carried out within of a judicial proceeding. This circumstance also implies the saving of the commission due to a real estate agent which in this case is not necessary.
Even in this case, however, it is possible to take out a mortgage for the purchase of these properties. “Mortgages to buy houses at auction, – explains Roberto Anedda, – provide for special procedures linked to the functioning of the auction itself; for example, the disbursement takes place only when the property is actually obtained, so all the documentation related to the auction will be attached to the application. There are also special agreements between the courts and some credit institutions . “
How does the traditional mortgage differ from the auction mortgage? “In itself the financing does not differ from the others , – replies Anedda. The offers remain very close to the market minimums, net of some increases if the property purchased is not a main home . In the latter case, on the other hand, the auction loan also benefits from the relative facilitated formulas. If any higher costs are removed, even in the case of an auction loan, the advantage lies in the possibility of financing the purchase easily and at low costs. Which can be a help for those who want to buy an investment house at auction ”.