The Money In Mortgages
Posted on June 19, 2009
As well as the bulk of the population worrying about paying off their mortgages, a small minority are actually attempting to increase theirs. Many of us manage this feat – much to our annoyance – without having to try to do so, but that’s because these few are taking part in a fast growing small niche in property development. The general idea is that mortgages aren’t a bad thing if they’re paid off quickly.
If you hold on to property then you end up paying a lot if you have a mortgage on it. If you can sell it on to a homeowner or property developer as soon as possible then you end up getting a quick return, without having to worry about a long debt.
However, this sort of strategy is deemed by a large number of those involved to be high risk, simply because of the amount of things that could end up going wrong is multiplied by the speed of the transaction.
Mortgages are different from loans in that they are designed to be paid back over a long period of time, so these rapid resellers are effectively constantly adding to their overall mortgage so that they can afford more properties at once, or one much larger property. It’s definitely not for the light-hearted, as the pace of the deals isn’t what most people are happy in dealing with. Being ruthless is far more important when your mortgage is becoming larger almost by the day.
» Filed Under Finance, Mortgages
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