Adequate Financing

Ensure that you have a reliable lender who gives you a sensible financial framework and consider a disinvestment during the period of the loan.

The keywords are:

  • No tax-driven financial planning!
  • Affordable external financing with sufficient own funds
  • Splitting of fixed rate mortgages + variable mortgages, e.g. on Libor basis
  • Avoidance of excessive risks by
    • creating a leverage effect (leverage effect; higher equity yield rate on the property investment through maximum borrowed capital)
    • 100% financing
    • Foreign currency financing (e.g. yen mortgage)
    • Borrowing for speculation in securities
    • Borrowing for life insurance policy

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