LRT CITY.COM - There are several methods of property financing. Each has advantages and disadvantages. Whatever method is chosen, it must be in accordance with your investment objectives and financial condition. In the current market conditions, many observers believe that now is the right time to buy property.
The reason is the market situation happening now puts buyers in a higher bargaining position. Meanwhile, on the other hand, many developers offer attractive offers. Starting from gimmicks, price discounts to convenience
payment.
Underlining the ease of payment, for those of you who have found your dream property but are still unsure about choosing the right payment method, this article will help you understand the various property payment methods. In fact, property financing can be done by cash or credit.
There are some basic things that need to be known before choosing property financing. If the difference between interest rates and deposits is above 5% (for example, deposit rates are 10% and mortgage rates are 17%), consumers are advised to buy hard cash.
However, if the difference in deposit interest is only 3-5%, then choose payment in soft cash. Furthermore, if the difference between deposit and mortgage interest is very small, or less than 3%, it is better to choose a property on credit with a tenor of 15-20 years. So, to find out the meaning of KPR, hard cash, and gradual cash, here's the review:
Home Ownership Credit (KPR) This type of financing is indeed the most widely used. KPR is a financing product for home buyers with a credit payment scheme of up to 70-90% of the house price. The rest is the down payment that you have to pay to the developer/seller. The term varies between 3-15 years. Generally, mortgages are provided by banks that have worked with developers.
Usually each bank offers different mortgage interest rates, but the point is the same. You don't need big capital. Enough with cash receipts and down payment. The risk is also quite minimal because most banks will check all home ownership documents. In fact, if there is a legal issue, the bank will step forward as the party with the most interest in the house.
The illustration goes like this, if you buy a house for 500 million, then at the time of closing the deal you will pay a token of 10 million (depending on the agreement). Next, you pay a down payment of 30% of the price of the house minus the previous signature (150 million – 10 million = 140 million).
The remaining payment of around 350 million will be paid in installments over the agreed timeframe and added to the agreed bank interest. Thus, if you take the mortgage method, the price of the property will automatically be more expensive because the price still has to be added to the bank's interest. You must complete the credit application documents before being approved by the Bank. - Eartizen
