If you are interested in creating wealth through property you will need creative investment funding. With our "out of the box thinking" goals can be achieved in a manner that would not be generally available on the open market. This type of financing is slightly different than the average mortgage and can provide you with the cash you need to purchase property specifically for investment purposes and in some cases up to 100% of the property value.
An investment property is purchased to generate profit through capital gains and rental income. In general, those who purchase investment properties do not live on the premises, as the property is for investment purposes only. While most investors have extra cash to spare, they do not normally have the cash needed to buy investment properties outright. This is where financing comes in.
Investment property financing can be taken in various forms. Mortgage funding is the general rule but with the introduction of investment funds, asset backed funding can be obtained by leveraging against current wealth. To qualify for investment financing, you will need good credit, maybe an investment plan, and in some cases, collateral. In certain instances the offer of funding can be obtained whereby the developer will underwrite the loan and payment generally made out of rental income over 10 years.
An investment property can have an effect on the amount of income tax
that you pay. There are property taxes that must be considered in most
jurisdictions around the world. In some cases, the taxes paid are deductible
and in some cases they are not and are collected by the letting agent. It
would be prudent to employ the services of a tax expert in the country that
you are purchasing in to obtain the best advise that is suitable to you.