Saturday, August 21, 2010

Real Estate Investment for Passive Income

We did not need a million to start invest in property. The strict strategies and knowledge , we too can invest in properties with a small capital and will soon start earning from them.

Just try for looking in our local area property to renovate and we can use to change. Turning them into a big aparment or vice versa. Then we have several options income, we can sell them and use profits to invest in other business properties for a large one, we can rent it and receive the monthly rent with the pay money.

At this point we need to analyze it:


Look closely at these two hypothetical situations

1: Buying a property spending 200 thousand rupiah of which 160 000 rupiah do the mutual, happy and glad I moved to live with my family and start to "enjoy" my investment but are forced to do some overtime hours at work and perhaps require that my husband goes to work, forcing us to leave the children to babysitter.

2: Purchase the property at the same price and conditions, but gave himself that where I live I have a lease dated the sum payable is not excessively high as a new contract and then decide to rent the 'property just purchased an' other person, Since then a new contract price will be equal if not superior to the mortgage payments and I will not affect my family budget to pay the mortgage so no need to do more hours of work, my wife may decide not to go to work and my children are not beaten and left in foreign hands.

What is the difference between the two hypothetical situations?

In the first case you've invested money because I put my 40 thousand euros are now 200 thousand in property but I am a mortgage to pay and all the paraphernalia that brings with it property taxes, repairs, maintenance etc .... not to mention the reduction of free time to enjoy my family and my property, I will probably reduce the period of vacation if not definitive renunciation and many other issues that a family has a mortgage on his shoulders every day.

In the second case, despite the fact that the purchase situation is completely different. My 40 thousand 200 thousand rupiah are now in a building, for the long term to appreciate (even if the market were to fall for some time the brick is an area that incorporates certainly fast enough) so my 40 thousand rupiah will become 250 / 300 thousand rupiah , with an inflow of 650% who gives you a percentage of similar interests? You counted on the fact that the loan is not you but your tenant to pay? And at the end of the loan do you find? Simple! A house that you originally paid 40 thousand rupiah and n is now very much more. Good luck!

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