5 Property Financing Options Property Investors Should Know About

Just day dreaming about buying and selling an investment property in London is not going to make you a millionaire. Both buyers and sellers have to be practical, realistic and learn about the property market for successful investments.

Learning about the property market helps you build a lot of options for getting your property investment and development financed. The property market is home to a number of property investment and development financing options.

At times, these options can confuse even the most experienced property investors, creating problems for them. Reading this article till the end will help you learn about a number of property development financing options doing rounds in market.

Property Financing Options:

· Mortgages:

Property investors can get in touch with lenders for getting their investment property purchases in London financed. Lenders in London normally finance up to 75% costs of purchase for up to 30 years of term. The mortgage is secured against the first charge. As far as the affordability factor is concerned, it depends on the profitability of your residential investment properties for sale and also their ability to generate enough money to help you make monthly payments.

· Property Development Finance:

It is important that you learn something about property development finance prior to attending London property auctions. It is a type of loan that is usually used for developing a new building, project or even refurbishing any existing property. You can approach money lenders for covering up to 70% of the GDV (Gross Development Value) for up to the term of 24 years.

· Portfolio Finance:

Got a number of properties? Need a loan for long term? If yes, this is the best option for you. You get the ability to consolidate your multiple loans into one loan. As for serviceability, it is totally subject to income generated by the rental unit. However, you must attend some property seminars and learn about it before attending London property auction.

· Bridging finance:

Are you a property investor? Do you need short-term loan? It helps investors get their purchase of investment property in London financed in no time. Lenders always take the first charge on mortgage and opt for exit immediately after the end of term.

· Mezzanine Finance:

It is kind of hybrid breed of all financing options available in market. At times, even very experienced property investors also find it difficult to understand. It is mainly a combination of all elements related to debt financing and equity investment and is also secured against the property investment. You can use this financing option for reducing cash flow requirement significantly to be able to get your property investment financed at a relatively low cost. Meaning that you will not require huge amount of money in your bank account to get your property investment financed prior to attending London property auctions.