subject: Why Now's the Time to Take out a Loan [print this page] Why Now's the Time to Take out a Loan Why Now's the Time to Take out a Loan
The economy's pretty tough right now, and most financial gurus are telling us it'll take some time before things look up. While that may be cold comfort to most of us, it does create a few opportunities for the adventurous. We're probably all aware of the adage that the best time to buy something is when everyone else is selling it.
It is a truism that the more sellers there are, the less money their products or services fetch. Sadly, we mostly buy when other people are buying, which means we invariably end up paying over the odds. From an economics perspective it's easy to see why this happens - we buy when we have disposable income. And when we have cash to spare, chances are it's because the economy is vibrant. This means other people have money, so we all end up spending our hard earned cash at the same time.
Few of us have any money left right now, but if we have a decent credit record, it might well be worth taking out a personal loan to do up our house.
Just think about it. You'll be able to get builders in at a fraction of the price you paid in the past. And you can haggle in all the hardware stores. If you need a new bath tub, ask for a discount. The guys need to do business, so they'll gladly reduce their price. That means you'll get a better return on investment. So when you come to sell your house, you will probably score big out of it.
It does seem strange to suggest borrowing money at the moment, but personal loans are actually pretty cheap right now as interest rates are very low. So, think about it. Borrow some cash when it's cheap; spend it when no-one else is spending so you buy at a discount. The remarkable thing is that you'll be borrowing cheap money, getting services at less than the normal going rate, and hopefully be making a decent turn when the housing market picks up, allowing you to sell at a profit!
