Apr 3, 2016


for a property, you buy and rent it for 5 years*.

rental = 1200/ month
total rental in a year is 14400

if sell after 5 years.
rental income is 72000.
plus your appreciation i.e. 50000

what is important is does your rental covers your monthly instalment?

takes into consideration of all costs.

i would say the bottom line for a good investment has the following criteria:
the monthly rental is more than the monthly installment
at selling point,
A- appreciation
B- rental income
C- all costs (legal+ stamping+ maintenance +etc)
D- sum of monthly payment to the date of selling
 the nett income is (A+B ) - (C+D) is greater than five percent of original price?

having all the fuss and earn a 50% after 5 years is worth?
workable because you need a small portion of downpayment
as soon as you can get a loan

how many properties can a person with nett worth of 100k buy?

* sell after 5 years there is no RPGT incured

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