Archive for the ‘Real Estate’ Category
Basic on Real Estate Investment
According to the financial experts, income can be divided into three main categories and one of them is ‘passive income’. Amongst those that contribute to the passive income is the real estate investment which can be consider the most profitable investment. But still, many people do not see the potential of this kind of investment because we think that to start the real estate investment, we need a big capital to start off. This may be true but with some twist, we don’t need much money to start building our own real estate investment.
We have to do some calculations, how much is our down payment, how much we need to borrow from bank and how much the monthly gross that the property will give to us. Those are the basic calculation and the results should be that our monthly gross from that property need to be more than what we are going to pay to the bank. In other word, we got extra money from our property after putting aside loan repayment and maintenance expenses. Bear in mind that we want to make money from our investment, not to give deficit to our regular monthly expenses.
So the basic thing to know is, how to manage our cashflow, so that we can make more money from our investment. More debts do not give any harm as long as we can control the debt to be the ‘good debt’ which give more income to us!