How_Money_Works_-_The_Facts_Visually_Explained

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PERSONAL FINANCE

Wealth-building investments

Save

Build a good team Specialize in a type

Buy

Research Look at budget

Maintain the property

Maintenance is essential to preserve

the capital investment. A property

must be inspected on a regular basis.

Receipts need to be kept as proof of

work as well as for tax purposes.

Buyers should compare prices,

risks, and returns for a variety

of properties—both apartments

and houses—and consider

numbers of bedrooms.

Protect credit rating

Keep? Sell

Reinvest

Undervalued areas

with signs of growth,

such as new shopping

centers, can be a

good investment.

A mortgage broker and solicitor are

essential from the outset. In addition,

it is important to find an accountant

and a team of tradespeople—even a

property manager can be useful.

It is a good plan to concentrate

on one type of property, such as

student housing.

SOLD

The bigger the deposit

the better the chance

of a good mortgage

offer with preferential

interest rates.

Operating expenses

and cost of mortgage

repayments need to

balance rental income

and/or capital gain.

A buyer should get a copy

of their credit report—free

at http://www.annualcreditreport.

com—and find out how to

improve it if necessary.

Interest

Rises (and falls)

in interest rates

can affect cost

of mortgage

repayments.

Finish

DEFAULT ON PAYMENTS—LENDER REPOSSESSES

GOOD MORTGAGE BROKER HELPS FIND A SUITABLE MORTGAGE

INTEREST

When prices stagnate or

increases are minimal, it is worth

keeping a property until the

market improves.

INHERIT MONEY FOR

INVESTMENT

CAN’T AFFORD MORTGAGE REPAYMENTS

HOUSE PRICES PEAK

or Sell?

Whether investing

long- or short-term,

selling at the right

time releases equity

HOUSE PRICES DROP for further purchases.

Choose

mortgage

Before beginning, a

buyer must look at

mortgage options,

confirm their

eligibility, and find

out what can

be borrowed.

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