I have already taken out a loan. Can I still buy a property?

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Episode 27:

I have already taken out a loan. Can I still buy a property?

In today's edition of our video blog, you will find out how you can still buy a property even if you have already taken out a loan.

Start the video here:

Investors frequently ask themselves

  • Which type of loan plays a crucial role in property financing?
  • What happens if you are already in debt and want to buy a property?
  • How can multiple property owners benefit from banks?
  • Why is it important to cultivate a conscientious approach to one's finances?
  • What steps should one take to find a suitable property?

We answer these and many other questions in our video blog episodes.

Here is the transcript of episode 27 to read:

The type of loan you have taken out plays a crucial role. Whether it is a standard personal loan or you are financing a car, many people have such loans. But what if you want to buy a rented property and the financing falls through? That could be a problem. Imagine you earn a net monthly income of €2,500, but have placed obstacles in your own way by taking on an excessive instalment loan of €1,000 for consumer debt. In this case, it will be difficult to gain a bank's trust and secure money for a property.

A bank will not be willing to grant you financial support for buying property if your financial situation is not in order. It simply doesn't work to bail out someone who is already in debt, not even by purchasing a property. That is not a realistic solution. Therefore, it is important that you manage your finances conscientiously. Should you already have property loans because you already own several properties, then rest assured that it generally becomes easier.

If in doubt, the more properties you already own and the more mortgages you already have, the higher your income will be. This pleases the banks, because it means you are more broadly positioned and not solely dependent on your net income. So, it is an individual matter. My advice to you would be to simply have it checked. Whenever we talk about buying a property, I will always speak to an independent property financier and bring them on board.

Good financing is crucial to securing a favourable interest rate and an attractive deal. Therefore, we pose the question: does a property fit your individual situation? Will everything run smoothly? If the answer is positive, we will certainly find the right property for you, provided you seek professional advice and make a professional product selection.

Keywords:
loan, personal loan, rented property, net income, bank trust, property loans, property financier

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