Investment loans carry a number of risks, including:
- The investment asset may not appreciate in value as you expect.
- The investment asset may lose value.
- You may not be able to afford the monthly repayments.
- You may be forced to sell the investment asset at a loss.
Investment loans can be a good way to finance the purchase of an investment asset. However, it is important to weigh the benefits against the risks before you apply for an investment loan.