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3 types of loans to finance new property

Different types of loans

Types of loans for a property purchase

The mortgage loan, a classic

Known and loved by many, the mortgage loan is a true classic when discussing financing options. There are two ways to repay a mortgage: in fixed monthly instalments or through fixed capital repayments. If you choose a fixed monthly instalment, you will pay off the same amount each month for the duration of the loan. If you opt for a fixed capital repayment, the monthly repayment will decrease gradually as you repay an increasing portion of the loan.

If you choose a mortgage loan, you automatically choose the lowest interest rate. The only disadvantage? You only really earn something on your real estate investment when your loan is completely paid off or when you sell it. Unless, of course, you can get a higher rental price for your property, but then you still have to get it rented out…

Reinstatement of your capital

Is your current mortgage loan almost completely paid off? Then you can borrow your previously borrowed amount again and invest it in a new purchase. In this case, you can take out the new loan at the interest rates applicable at the time. 

Reborrowing your capital has its advantages, but also a disadvantage: although you may save on notary, registration and mortgage costs (you are not taking out a completely new loan), the mortgage still rests on your family home. So if something were to happen, your own home would be the first to be sold. 

Have you ever heard of a bullet credit?

Have you ever heard of a bullet loan? No, that is not surprising, because a bullet loan is perhaps the least well-known financing option you can take out. 

If you take out a bullet loan, you will only have to pay back the interest each month. The capital itself will only be repaid in one go at the end of the term. However, this form of financing is not available to just anyone. You will have to demonstrate to the bank that you have sufficient capital (or are working towards it), for example through your participation in a group insurance policy that is paid out, through an investment that becomes available or through the sale of a property with which you can repay sufficient capital. 

If you opt for a bullet loan, then you can only borrow 70% of the full cost price, over a maximum term of 15 years. Interest rates are also higher than for a mortgage loan. The advantage of a Bullet Loan is that you can limit your monthly outgoings and that, consequently, you will actually earn something on your rental income. 

Borrowing money also comes with conditions

When you take out a loan from the bank, it will always check whether you can actually repay the loan over time. The net income of the person taking out the loan is taken into account. A loan may only amount to between 30 and 40% of your total income. Of course, the bank also takes into account the possible rental income that your property will generate, although the bank does take into account that the property will not be permanently rented out. 

Do you have further questions about taking out a loan and which option would suit you best? Then consult your bank, check the website of your national institution or contact Immowi, we will be happy to advise you!

Immowi Assistance

There is often an invisible wall between marketing and sales. Companies invest in marketing campaigns to generate leads, but do not take the right actions to turn those leads into customers. To remedy this shortcoming, the strategic online lead generator Immowi is adding a new extension: Immowi Assistance. Until now, we delivered high quality leads thanks to online marketing, but with Immowi Assistance we significantly increase the chance of these leads actually becoming customers. Thanks to this approach, companies that do business with us know how to convert their leads and have a platform where the leads are offered on a silver platter, ready to be converted into valuable customers.
Extremely result-oriented
We could make it easy on ourselves and be happy with just bringing in high-quality leads. But it’s frustrating when your hard work doesn’t follow through. Immowi’s great strength has always been that we are very results-oriented. Many marketers have a reputation for selling hot air, because they can’t substantiate their returns. We did that right from the start, and that’s why we were able to grow from one to more than 10 full-time employees in a very short period of time.
With MyImmowi we just go one step further than what classic lead generators do. We go to the point where a lead becomes a valuable prospect. We help our customers convert their leads into customers.
Entrepreneurial mindset always in mind
MyImmowi builds the bridge between marketing and sales. We Make it as easy as possible for the client to contact the lead. You have to keep them warm. If you let a few days or even weeks pass between the moment a lead shows interest in your product and the moment you contact that lead, you will lose him. Then your success ratio will remain low. So, we try to immediately set an appointment in the diaries of our clients’ salespeople. You have to strike while the iron is hot.
Letting sales people do what they do best
Sales people like to sell, but they thoroughly hate administration. They keep track of their leads, their appointments and their deals in Excel, or even with pen and paper. They only keep track of their own prospects. Many companies do not have a sales pipeline. So, you risk sending a quotation to a customer after a successful meeting, but ultimately missing the customer because you forgot to follow up on the quotation. You’re almost done, but because of the lack of a decent digital process you miss out on a customer – and therefore also on turnover.
We pick the low-hanging fruit for our customers. We automate the entire process from lead to customer, and put it into one clear dashboard. This way, as a business manager, you can follow everything from A to Z. How many leads does a campaign produce? How many of those leads drop out along the way? How many become customers? What stage is each lead in? The personnel cost of sales people is very high in many companies. If sales people do not lose time calling leads and recording appointments – which we do – they can focus on what they are really good at. And that is still selling, closing deals.
Measuring ROI to the euro
We bring marketing and sales under one roof. That way, you can make your campaigns much more effective. Imagine that your campaigns for one brand on Facebook and on Google both generate 10 leads, but that 8 of those 10 Facebook leads become customers and only 2 of those 10 Google leads. If you’re purely marketing, you won’t get that information and so you’ll continue to put the same amount of effort into Facebook and Google.
If you also include the sales part and you do get that information, then you can turn the right buttons, redirect your budgets and generate much more turnover.