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Assets refer to resources with an economic value that you own or control, with the expectation that an asset will provide a future financial benefit. Buying properties is one way of increasing your assets. 

For everyday folk who do not invest in things like stocks and shares, the dollars and cents they have tied up in home mortgage loans can soon turn into dollars and sense – i.e., investing in housing makes a lot of sense if you want to increase your assets and get a good financial return in the future.

Options for Property Assets

You can invest in property in several ways in order to increase your assets. You could purchase a house, a luxury property, or even a commercial property directly with the help of a mortgage or you could put your money into a property investment fund, in which you can get shares in various properties or enhance your property portfolio. 

You should spend some time exploring which options are best for your specific circumstances and needs. Options to consider include investing in buy-to-let properties, property developments, overseas properties, newbuilds to sell on, and real estate investment trusts and other property investment funds. 

Using Leverage

If you want to make the most out of your property investment and see a good return, you should learn about leverage. Basically, leverage is about using various financial instruments or borrowed capital, such as mortgage loans, to increase your potential return on investment. 

By using leverage in the right way, you can not only expand the potential for excellent financial returns. You can also reduce the risks that come with any investment. Remember, while property can be a sound investment choice when real estate prices rise, if prices go in the other direction, it can potentially lead to losses.

Getting a Mortgage

One option for increasing your assets is to take out a mortgage that enables you to purchase a property; or take out more than one mortgage to buy several properties. 

Your exact strategy for increasing your property assets will be dependent on your personal financial circumstances. The first step is to find the right mortgage. 

Finding a lender that enables you to put down a low down payment and offers other incentives is important if you want to get the most out of your property investment. 

For example, home mortgage loans from SoFi are a great choice because the lender offers down payments as low as 3% for first-time buyers and guarantees the closing happens on time. Furthermore, if eligible, you can get up to a $9,500 real estate commission rebate.

When looking at lenders with a view to taking out a mortgage loan, it is important that you ask the right questions to ensure you get a good deal and are in a good position to carry on increasing your property assets in the future. 

First off, you are sure to want to know how much you are able to borrow. 

You can use a mortgage calculator to get a good ballpark figure, but you still need to talk through your financial situation with a mortgage advisor to determine how much you can actually borrow and what the terms and conditions are; such as how much of a down payment you need to put down, what the interest rate is, and how long the duration of the loan is. 

You should also find out:

  • Whether a fixed or adjustable rate mortgage is best for your situation.
  • How good your credit needs to be.
  • How many mortgage points the rate includes.
  • At what time the interest can be locked in.
  • What the estimated closing costs are.
  • Whether there are any other fees to pay.
  • What could delay the closing.
  • Whether there is a prepayment penalty.
  • Whether you need mortgage insurance.

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