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Interest rate in my country for a mortgage loan is 15%. I found a great deal for a buy and hold property. But with a down payment of 20% and a 30 year mortgage loan it will take 2-3 years to obtain a positive cache flow. What should I do? I only have a capital to pay the 20%
If your capital only covers the down payment on the property you're considering, and cash flows will be negative for up to three years, then you haven't found a great deal, but a very bad investment, at least for you. You could end up losing all your money due to foreclosure and/or bankruptcy.
Are foreign investments legal in your country? If they are - and if taxation of foreign income isn't excessive - you could look into buying shares of American or European real estate investment trusts. These are companies that invest in real estate holdings in countries where property prices are rather stable and commercial interest rates are moderate. They may pay dividends as high as 8% a year.
Perhaps you could contact the Finance Minister of your country who is, I believe, seeking persons to take generous fees for assisting him in securing his inheritance. Next time he emails me, I will forward his information to you.
Interest rate in my country for a mortgage loan is 15%. I found a great deal for a buy and hold property. But with a down payment of 20% and a 30 year mortgage loan it will take 2-3 years to obtain a positive cache flow. What should I do? I only have a capital to pay the 20%
Isn't it obvious?
Don't buy it.
The numbers don't work out if you have to feed it every month and you have no money to feed it with.
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