Optimal financing
Internal or external financing – or both? But how and in what ratio?
Choosing the right financing mix plays an important role in the success of your property investment. What effect will an increase in interest rates have on your bank loans, what is leverage, and is interest expense deductible or not? Did you understand all this? Then don’t forget the collateral for your foreign currency credits and the indexing for your rental income. And when you’re finished, convince your bank or your shareholders to give you enough money to realise your plans.
Choosing the right financing mix plays an important role in the success of your property investment. What effect will an increase in interest rates have on your bank loans, what is leverage, and is interest expense deductible or not? Did you understand all this? Then don’t forget the collateral for your foreign currency credits and the indexing for your rental income. And when you’re finished, convince your bank or your shareholders to give you enough money to realise your plans.
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