Borrowing money? No, thank you! Common misconceptions about borrowing...
From an early age, your parents and grandparents have probably instilled in you the idea that borrowing money should be a last resort when you want to carry out a project. Indeed, it is deeply ingrained in our culture that taking out a mortgage loan for your property from a bank is a burden that must be gotten rid of as quickly as possible.
The consequence of these beliefs is that you hold back on your dreams and don't take the plunge to do everything you can, including taking out a loan, to make them come true. So you deprive yourself of buying that apartment by the sea to spend weekends with your family, that swimming pool to enjoy the summer sun, or even that red car that the child in you has wanted for so many years.
Credit: your friend rather than your enemy
The goal of many people looking to take out a loan is to get the lowest possible interest rate from the bank so they pay as little interest as possible. The focus is therefore on the cost of the loan, which is seen as an expense. But what if, rather than a cost, the loan was actually an investment strategy?
Yes, a loan can earn you money! How? By taking out a mortgage or other loan over a longer term. This way, the monthly payments are lower, allowing the borrower to save money despite their outstanding loan. This available amount can then be used for another investment, such as an apartment to rent out. The aim of this investment is to earn money and thus offset the interest owed on the loan.
In the same vein, it is important to avoid the trap of using up all of your own funds in order to borrow as little as possible from the bank. The right approach is to keep some of these funds to use for a second investment.
Credit therefore acts as a real lever, offering investment and savings opportunities. A well-considered loan can therefore help you earn money. Our RGF advisors are available to assist you with this process.
What is your borrowing capacity? Simulation with the RGF Group
Today, the adage "He who pays his debts becomes rich" is no longer relevant. It is important to look not at what credit costs, but what it brings in. Would you like to know more about your borrowing capacity? Try an online simulation on the RGF Group websitewebsite. RGF experts are available to provide you with the best possible guidance based on your goals, needs, and investment plans.
