You might have seen the title and thought, "how could this be? Is it an illusion?" I can promise you that it's not a trick. It is very real, yes. There's no trick. It's an old way to invest called "leverage." Leverage is when you use the right balance to move something big with a small amount of force. Investment experts have been using margin accounts for years to borrow stocks, make money on them, and then sell them for a profit. The price difference is how much money they make.
But this is not some crazy way to make money. It's a tried-and-true way to invest, so you won't have to worry about it.
If you own a home, you can get a secured loan to help you turn your home's value into more money. This is how.
You paid a certain amount for your home when you bought it, and even though you've enjoyed it over the years, you probably hope, like many other people, that its value will go up so that when you sell it, you'll make money. Who wouldn't want that?
So, a secured loan is what you need. When you use a loan to make improvements to your home, you can raise its value. And often, the overall value of your home goes up faster than the amount of the loan! It's great to hear that. That's called leverage!
So you should get a secured loan and build that addition, put on a new roof, get new windows, or paint your house. No matter what you do, you'll help your home's value go up. This is an investment you can enjoy until you decide to sell.
And you can do this on the cheap with a secured loan. This is because a secured loan is one that you can get by putting up an asset as collateral. When deciding whether or not to lend you money, a lending institution looks at the possible risk they will take. If you only have your credit score to offer, the risk is higher than if you have a house, a car, stock certificates, or art. Anything of value will help them feel less risky because if you can't pay, they could take the asset and sell it to get their money back.
So, if you want to make money off your home, which is what most people want to do, you should think about getting a UK secured loan. Get the loan, fix up the house, and then sell it for more.
