The fundamental of investing in property is not much different than buying a business to earn you passive income. However, the nature of brick and mortal business is an Active Income generator, not a passive one.
VS
So you would need to be extra careful when using property as your finance tool to gain "Passive Income".
In simplest term, you HAVE TO make sure
- you can rent your property out to fully pay for the monthly loan repayment
- you budget in the fee you pay for professional to maintain your property including
LawyerReal Estate agentsRenovationInterior Design if needed etc.
Without these 2, you cann't start property investment at all. With this, there is no guarantee you can win big yet but at least you would at least pay less to learn the lessons.
7 comments:
yes yes yes. world is never this ideal :(
The price of our unit in HFC is dropping day by day... :( ... anytime from now, we would still be earning as we bought in a relatively low price 3 yrs ago.
We hate renting to others :(
OoT
The rise in property investment in the event of falling property prices in many countries of the world. Documenting one man's struggle to financial success through the property investment market. Investments is a worldwide leader in asset management, with extensive capabilities in Equity.
---------------------
jnnywllms
social media optimization
My 2 cents
Take your holding cost:
-Quit rent
-Assessment
-Allowed repair and maintenance
-Insurance
-Income tax (estimated)
Add them up and divide by 12 then add on
-Monthly installment amount
-Collection expenses (e.g. phone calls, travelling, bank charges)
-Lawyer, agent and stamp duties paid divided by no of months of the lease
-A little profit element a month
That should give you a viable monthly rental.
One suggestion; keep all the invoices and receipts to clam expense net off against your rental income when you do your tax filing
Lee Wee Tak
Michael,
Any comments on how to approach the banks/lenders to finance the purchase of property as an investment vehicle? You know, property investment is all about leveraging.
Appreciate if you could talk about aspects we should pay attention to (revealing the "hidden" truth) when selecting a mortgage package in both self-occupied and investing purposes.
when negotiating for loan, its best if you have cash offer at hand. Else they are at upper hand if you are the one who want to borrow, not they want to lend you.
other than that, ask for daily calculated interest ...
why should ask for daily calculated interest?
a daily calculated interest loan has better flexibility for cash flow control, which is also an important aspect in property investment ...
Post a Comment