Your credit worth is your net worth in present-day society. If you understand the crux of this formula then debt management can become an easy task for you. The property that you are holding even after paying your regular EMI’s can serve as your net worth at times. Most of the property owners battling it out with an intention to strike a balance with the EMI’s often forget that single fact they can utilize the property for the same purpose. In the current compilation, we are trying to compare various methods related to the process of debt consolidation with the help of real estate property.
How about getting a cheaper loan on the property to save on interest
The world is reeling under the pressure of a probable recession. A recession that can hit the capital markets big time. Many economists believe that this recession is inevitable and it will bring a sea change in the current market positions of the world. In order to suppress this recession, many financial institutions are trying to infuse a further layer of activity in the market, easy loans on an existing mortgage is an attempt in this direction. Calculate a deal keep an eye on the terms related to the closure policies and you will get an idea that you are consolidating your debt or you are just struggling to save peanuts by engaging your property in another loan and playing badly with your credit scores. There is a different in residential and commercial solutions but both are mutually beneficial. There are many funders out there, one you can consider is Green Shore funding.
Selling a part of the property can act as a nice solution
Let us assume that current face value of any property is inflating at a rate of 6 percent, the value of money is coming down in comparison with the other economic goods. Every property passes through three phases, the first phase is the phase of swift rising, the second phase is the phase of stable rising, and the third phase is the phase when the property start declining because it has already attained the cost associated with it. It is the time when rentals bring in a fair amount of income.
Consolidate your debt in three stages, sell the less valuable part of a property in the first phase and if possible then consolidate your debt or a part of it. When the property prices reach at its peak then release the second part of it. Finally, keep the third part of the property with you and receive a regular income from it. At the end of it, you will find that you ate your cake of real estate and you have a substantial part of it already with you.