Are There Advantages to Investing in Property with a Mortgage?

[Suba]

Property remains an attractive investment instrument for everyone and is suitable for all risk profiles. It's no surprise that the population continues to grow every year, leading to a growing demand for property, and consequently prices of property will be rise. Those with plenty of spare cash certainly have no trouble owning as many properties as they desire. However, for lower-middle class individuals, buying property with cash is generally a significant burden. I don't think saving up first is the right approach, as the initial purchase is often used for other, more important purposes, or property prices will be higher than they are today in five years.

So, personally, I believe buying property with a mortgage also offers many advantages, which is why I need some your enlightenment. Thanks.

 

[Springtime]

I bought my property 15 years ago with a mortgage. Hong Kong's real estates is very expensive. Unless you are very rich, most people buy property with a mortgage. Although I have to pay interest, the value of my property has increased quite a lot over the years.

 

[Suba]

I bought my property 15 years ago with a mortgage. Hong Kong's real estates is very expensive. Unless you are very rich, most people buy property with a mortgage. Although I have to pay interest, the value of my property has increased quite a lot over the years.

I agree with you, buying property with a mortgage, even though we are charged interest so that the price almost doubles, but it has advantages in the future or long term and of course the value of your property has now reached the sky.

 

[Tobi]

It’s tough to say there’s a clear advantage. Most buyers can’t afford to pay upfront since it’s a few thousand dollars to buy a home. A mortgage is usually a must. The downside of a mortgage is that the buyer has to pay interest fees to the lender.