1, high loans have many benefits.

Domestic banks have strict restrictions on individuals applying for housing loans, and ordinary people can only apply for loans of about 50% of the house price. At the same time, collateral other than real estate will be required in China, and the high threshold such as background check has also become an obstacle for many people to apply for loans.

Unlike China, the threshold for Australian banks to apply for loans is much lower. In Australia, under the guidance of professional loan managers, banks are usually willing to provide applicants with 60%-80% of the loan amount. At the same time, the applicant does not need to provide other collateral except the house, and the loan period can be as long as 30 years, which provides great convenience for the applicant.

There are some clever ways to diversify your investment.

Maybe everyone has heard a joke: a businessman watches a monk go fishing. The monk asked, "I have a basket of fish and a fishing rod to give to the donor." Do you want a fish basket or a fishing rod? " Without thinking, the businessman replied, "I want a basket of fish." The monk laughed and said, "Why doesn't the benefactor want a fishing rod? Don't you understand that it is better to teach people to fish than to teach people to fish? " The businessman smiled and replied, "I sold a basket of fish. I can buy some fishing rods." I use one for myself and rent the rest. You can continue to buy fishing rods when you get the rent. I can even run a fishing resort with more fishing rods ... "The monk was silent.

Bojun smiled, but the reason was obvious. Diversified investment with limited funds can bring more extensive benefits.

For example, if you buy a property worth 500,000 Australian dollars with 500,000 Australian dollars in one breath, you will have no liquidity. If you suddenly find that another investment project or business needs capital turnover in a few days, you will have no available funds. If you choose a bank loan from Australia when purchasing, then the total loan at that time is 500,000 * 70% = 350,000. That is to say, the down payment at that time only needed 50W-35W= 15W. Therefore, the capital flow brought by the loan will provide you with more investment options and potential investment income!

Refinancing is great.

Let's look at another example of why we need a loan to buy a house: A bought a house for 500,000 Australian dollars a few years ago, and then borrowed 35 Australian dollars from the bank. A few years later, the value of the property has increased to 550,000 Australian dollars. If you choose the second loan, you will get another surprise: Take our story as an example, the current house price is 55W, and the 70% loan amount is 385,000. Subtract the current 35W from the total loan three years ago, and there will be an appreciation of 35,000. We can use the value-added funds to buy a second new house from the bank loan, or accelerate the repayment of your current real estate loan, or use it as the funds for your daily business and life turnover.

Back to the example we mentioned above, if you choose to use the $350,000 saved by the loan to pay the down payment for one or more houses, assuming that these houses have appreciated to a certain extent in a few years, then you will have more assets and more value-added parts that can be raised from the bank in a few years, which provides a feasible choice for our usual investment.