Would it be a good ideal to get a home equity loan to purchase an investment property. Considering the markets today should I just leave well enough alone
2006-09-30 07:53:05 · 5 answers · asked by justasking 2 in Business & Finance ➔ Investing
I have been in the mortgage business for over 10 years and currently own 3 investment properties. Real Estate can be a great investment - as they say, "they're not making any more of it!"
As far as the equity line I would say it depends on your situation. You certainly have a better shot getting a lower rate on your primary residence than on a loan for an investment property and it can be a lot less hassle, so if that is why you asking about the equity line it may be a good idea. But if you are using the equity in your primary because you have no other source of funds you may want to think again. Investment properties, although they can be profitable in the long run, can often be a source of headaches and you can incur a lot more expenses than you may think.
As far as the current market - if I knew what was going to happen - I'd be a billionaire!
Hope this helps!
2006-09-30 08:12:32 · answer #1 · answered by kmunis 3 · 1⤊ 0⤋
ONLY if you feel confident you are making a good purchase, properties will always go up in value, maybe not for a few years but they will. But make sure you can afford the payment. As my Dad always said it takes money to make money. Make sure you have a plan with your investment property like rental, or fix up and sell, because you need to follow through so you don't get burned from jumping the gun. Good Luck.
2006-09-30 13:38:16 · answer #2 · answered by whattheheck 4 · 0⤊ 0⤋
Bad idea-Thats like taking on margin debt during the internet bubble of 2000.....don't be a fool and buy property now, the prices have only just started to fall.
of course a mortgage broker will tell you to buy, they are like the stock analysts of the internet-mania that told you to buy stocks as they then dropped 60% in a year.
2006-09-30 15:07:22 · answer #3 · answered by -* 4 · 0⤊ 0⤋
NOPE the banks win with you.
visit DaveRamsey.com to learn what the banks do not want you to know. Figure in Risk to your equation.
DO buy investment with money from your home , I or an associate will get a chance to visit you in years to come.
2006-09-30 09:56:24 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Go for it it is some one els's money. Some one has to be left holding the bag.
http://www.breakingbubble.com/index.htm
2006-09-30 08:12:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋