The rules for property investment in this new decade have changed. Why? Because the investment environment have changed significantly. Those who cling to the basic formula of buying a string of properties by taking on monster mortgages (or in other words, minimum downpayment and maximum loans) will soon be licking their own wounds. They will be seriously hammered when prices turn down and interest rate rises. Their monthly repayments shoot up, and many will not be able to pay off their loans. Life could turn real nasty because they may face a negative equity situation – where the loans exceed the value of the properties (which is already happening to a lot of car owners). They could lose all their money and also their properties when the banks start repossessing and then auctioning off the properties. At the same time, the opportunities to make serious money from properties are still there. All you need to do is to know what to do in the face of the changing environment and then of course, to take the necessary actions.
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