Why can real estate refinancing be interesting?
Property investors can refinance capital and in this way also get money available again for new investments with higher returns. Are you still stuck with comparatively high mortgage rates? You can do something about that. When is refinancing a real estate investment wise?
Existing investment properties also need attention. You can further improve your returns by shifting (real estate) capital. We are happy to explain where the opportunities lie for achieving even better returns.
Say goodbye to high interest rates with private parties
Finding a suitable lender is especially difficult for property financing from €2 million onwards. In some cases, financing succeeds only with lenders who are high up in the tree in terms of mortgage interest payable. To still get the financing, you have agreed in the past. As house prices have almost exploded, you can probably get rid of these expensive property mortgages and refinance at reasonable interest rates and with better terms.
Realise well; a mortgage you can part with again on terms and at possibly a penalty interest rate. Of course, if it makes you money down the line, grab this opportunity right away.
Refinancing gives financial room
Are you a real estate investor with financial room to spare? In other words, do you have very little financing left to your name? Taking a look at your current real estate mortgage and refinancing it can open up space for new projects. Like other real estate investors, you can invest across borders where nice returns still lie ahead. After all, prices in the Netherlands have risen so much that they may have run out of steam. There are still growth diamonds waiting for you in certain Spanish cities. A first step is to have capital available.
With the sharp rise in sales value, finance new properties
By refinancing an investment property, you can generate extra cash flow to expand your property portfolio. This is caused by the increase in value of the properties you already own. By improving the Loan to Value (ratio of mortgage debt to property value), you can negotiate better financing terms with lenders. You may also be entitled to lower mortgage rates. Lower charges, in turn, create more financial room for new investments.
How does refinancing a property work?
Step one is to have the market value of the property determined. This is the value when let or unlet. For a let property, the value will be lower on average, but it too has risen considerably due to the sharp rise in house prices. The mortgage on the property is paid off by the lender where you take out the new financing. This could result in penalty interest, which is why it is important to discuss the financial implications carefully with one of our specialist advisers. The increased value may also give you a capital sum after taking out the new mortgage. You can invest this amount back into property....
Possibly finance a renovation at the same time
If you are going to refinance anyway, you can also include an extra amount for renovation. To refinance, you will have to incur costs anyway, so it makes sense to include a renovation right away.
We help property investors as well as estate agents and accountants in the field we are strong in. We can make financing costs as low as possible. The costs you (or your client) do not incur benefit the return. We would be happy to talk to you further about the possibilities. Jeffrey Strik can tell you all about real estate. You can reach him on telephone number 0642149847.
