Learn real estate management

They are often confused with home loans, but while home loans are loans to individuals, real estate investment loans are loans to profit-making businesses that use real estate.
In other words, because real estate investment loans take into account the profitability and profitability of the business, interest rates are generally higher than those of home loans.

In addition, many of these loans apply variable interest rates, which means thatYield Gap (※)To avoid this reversal, it is important to understand the product's characteristics well when purchasing.

When it comes to loans for condominiums, the loan is relatively packaged as a "real estate investment loan," so within the same financial institution, the difference in interest rates due to the property or personal attributes tends not to be that great.
At a minimum, you should keep the following points in mind:

• Base interest rate at the time of lending: Long-term prime rate or short-term prime rate
• Timing of change in repayment amount: Immediate change or no change in repayment amount for a certain period

⇒Even if the repayment amount remains constant, interest rates fluctuate, so the ratio of principal to interest is adjusted to accommodate.
This will affect how the principal decreases (remaining debt), so it's important to understand how it works.

When it comes to loans for single-building properties, there are often differences in interest rates depending on the collateral valuation of the property being purchased, personal attributes, the status of the owned assets, etc.
It is likely that you will be able to respond more quickly to high-stakes brokerage properties if you check with the financial institution in advance about interest rates and other details.

For more information, please contact your Conspirito representative.

※Yield gap
Generally, it refers to the difference between the investment yield and long-term interest rate. In real estate investment, it can be thought of as the difference between the interest rate on the loan and the yield of the investment property.