I have been contemplating buying a house or a condo in the capital city as a holiday home and a form of investment. The home loan interest rate at this time is very attractive indeed and it is a plan worth considering if I were to take up a loan with a fixed interest rate. However, since I work for myself, my income is very erratic. I could earn a lot in a month, or I could earn just enough to cover my monthly operating cost. A great factor in determining my income is the amount of time I put into the business.
I am thinking of getting loans from friends instead. These will have to be friendly loans WITH interest. Of course, money is a very sensitive issue and even the best of friends fall out when money comes in the way. Friendship does not deter the creditor in sending a
Collection Agency after the debtor if the loan is not serviced accordingly.
The fact is that I may not qualify for a home loan from a financial institution because of income records and the only option for me, if I were to purchase a property now, is to obtain loans from friends and family. Otherwise, I would have to save more money and buy in cash some time in the future.