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Sep 28, 2017 - 34 minute read

Hdfc personal loan closure details

Why do you get a higher return on your money when you get a loan instead of paying cash for a rental. I am going to use some basic figures to outline the benefits of leveraging your money. If you buy a hdfc personal loan closure details house with cash and make 500 a month in cash flow, you are making about 6 percent cash on cash returns.

Cash on cash return is the return you are seeing on the cash you have invested into the property. If you buy a 100,000 house and put 20 percent down, you will have a mortgage payment, but the returns on your cash invested increase because you are using much less cash. If you are paying a 4 percent interest rate, your principal and interest payment will be about 382 (check out the bank rate mortgage calculator for calculating mortgage payments). You are only making 118 a month cash flow after subtracting the mortgage payment, but you are making 7 percent cash on cash return due to the lower initial investment.

Additional benefits of getting a loan on a rental property. Even though the cash on cash return is 7 percent, you are actually making much more than a hdfc personal loan closure details percent total return in the above scenario.

Hdfc personal loan closure details

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Hdfc personal loan closure details

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