Some Bought Houses Because It Would Serve As A Status Symbol

Category: Finance, Real Estate.

Earlier on, most people bought houses because they needed a roof over their heads.

However, things are very different in today s world. Some bought houses because it would serve as a status symbol. Rented houses and apartments being full and plenty, people are increasingly opting for renting an apartment instead of spending a significant share of their income to buy a home of their own. Over the years, the amount that you cough up with respect to the rent and the deposits will be far in excess of the amount that you would have had to pay had you bought the house. In my opinion, that makes for a bad investment, unless one has found a landlord who charges dirt- cheap rates. And what is worse, you will not even be left with a house that you own. More and more people are moving from their hometowns for better education and jobs.

However, a lot of house owners have recognized the need for apartments on rent. They need places to stay. Increasing numbers of people who have the means comprehend the volume of profits involved in the real estate business. So, those who already own multiple houses often let one out to tenants in return for rent. By renting out your house for a decent sum, you can quickly recover the amount that you had parted with while making the purchase. If you do not have sufficient money to buy a house with your own savings, just walk over to the nearest bank.

Very few other investments allow you to recover your money in such an easy and safe manner. These days, a new kind of mortgage plan has been developed for those who buy houses with the primary intention of giving it on rent. Based on this and some other information such as the amount that you are currently paying on loans, you will be forwarded a certain amount as your mortgage loan. When you go out to apply for such a mortgage, you will have to supply information regarding what kind of a rent you are hoping to charge and what your current income is. A buy to let mortgage does simplify the life of the landlord who intends to rent out his house. For instance, the interest rate is relatively higher in this case than for other mortgages. However, this kind of a loan has its own set of negatives.

Moreover, the applicant would be required to put down a larger sum of money as deposit in this case. However, in spite of the disadvantages, these loans are gaining in popularity.

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