After many people buy a house with a loan, they pay off the loan by renting and maintaining the loan. What does it mean to rent and maintain the loan? Is it cost-effective to rent and support loans in modern times? What conditions need to be met to rent and maintain loans?
What does it mean to rent and maintain loans?
In addition to maintaining and increasing the value of real estate investment, it can also bring certain rental income. With the idea of "supporting loans with rent", many citizens prefer to bear heavy mortgage pressure rather than miss the opportunity to buy real estate.
According to Xiaobian, supporting loans by rent means that buyers buy a house by paying a certain proportion of the down payment, then rent the house out, and use the monthly rent to offset the loan.
Is it cost-effective to rent and maintain loans?
It seems to be a good investment way to rent, support and loan, but is it really cost-effective? It depends. If the rent can really deduct the monthly mortgage, it may be cost-effective to invest by renting and maintaining the loan; However, if the rent is not enough to deduct the monthly repayment, then we have to put a question mark on the 'rent to support the loan'.
Suppose that the rent of a house with an area of 70 square meters in your area is 700 yuan, and the monthly supply of the house with an area of 70 square meters you purchased is 1500 yuan, with a gap of 800 yuan in the middle. This does not include the down payment, the discount of household appliances and furniture, etc.
Moreover, at present, house prices have been rising. A large number of non owner occupied demand enter the real estate market for house purchase, which will form idle after a certain period of time. This part of idle houses will also enter the rental market, resulting in a decline in rent. Therefore, in this case, supporting loans by rent is not a long-term and reliable investment channel.