Do you want to invest in mortgages? Have you searched for alternate investment options you can invest in? If yes, you most likely must have heard of Mortgage Investment Corporation (MIC). In the past few years, MICs have gained popularity as an important component of an investment plan for both preserving and building wealth. This investment option offers many benefits, including consistent rates of return and diversified holdings that lower the investment risk.
Here are five factors to consider when deciding to invest in an MIC:
Liquidity
Pay special attention to the investment subscription agreement to find out how soon you can get your money back. Nobody likes to find themselves in a position where they need money but have to wait a long time to get it out of their investment. Some MICs only permit redemptions once a year.
Continuity
Inquire about the actual ROI compared to the target ROI for the last five to ten years. This will not only show you how good the MIC is, but it will also show you whether it can consistently hit or surpass the ROI targets. Even the Bank of Canada rate have a direct impact on MIC ROIs, that’s why it is crucial to search for patterns in the data to ascertain the trajectory of growth for MICs.
Risk
Discover which home markets you’re investing in and what kinds of mortgages your money is backing. The housing markets and types of mortgages that make up a MIC’s portfolio, whether urban or rural, first or second mortgages, are crucial in determining interest rates and, as a result, the possible risks connected with an investment. You should choose a MIC whose tolerable level of risk corresponds to your own.
Reward
Inquire when and how the dividends are distributed, particularly if you intend to reinvest the dividend in the MIC, as the investment is compounded on a predetermined schedule. Dividends are not issued on the same schedule by all MICs; some pay out monthly, some quarterly, and some annually.
Conversation
Verify the MIC’s ability to respond to ad hoc information requests in addition to their reliability and clarity of reporting. One may never predict when they will require instant access to information on their investment. Your potential MIC should have an investor relations manager available to answer questions, provide extra information, and assist you in understanding the investment product.
So, these were some of the factors you need to consider before investing in a mortgage investment corporation. Versa Platinum is your trusted mortgage pool service provider assisting potential investors in gaining higher returns on investment with quarterly and consistent returns. Invest with Versa Platinum today and watch your wealth grow.
