Interest Only Vs. Buy-to-Let.

The word Debt is often frond upon and known as something you should avoid at all costs. However, the savvy investor knows utilising good debt can create great wealth.

There are two methods in which you can re-pay a property deals mortgage. There’re interest-only mortgages and buy-to-let mortgages. This article will discuss which is the most favourable option in our opinion.

Through our wealth of experience, we know that interest-only mortgages provide a greater return on investment (ROI). Using an interest-only mortgage allows you utilise funds and after refurb pull out your existing capital in order to re-invest in your next deal. This in turn creates larger monthly cashflow, and gives you bigger, more diverse portfolio.

This one way of utilising debt for the greater good. Most successful investors have gathered a lot of debt over the years and are financially free because of this. These smart investors like ourselves leverage the interest payments, they know that having all their capital tied up in one property restricts them from growing their portfolio and their cashflow.

The most important factor in being a success in the property industry is knowing your market and finding deals that meet your investor and your own criteria. You must always be looking in the correct areas and buying at the right price, this allows you to add value through refurbishment and benefit from capital gains as the property will rise in value over time.

Inflation is always rising and banks are dropping interest rates on savings account meaning you are losing money having it in the bank. Property will always be the safest investment one can make and when bought properly will always rise in value,  along with providing you monthly cashflow unimaginable through traditional methods such as banks.