Sunday, June 25, 2006

We Mean Big Money

Time flies fast when ur having fun! Haha, I’ve just finish my 1st year! Take that cruel world! Now back to business, I don’t want to jump to real estate this fast but looks like lady luck have some major plans for me. Well, some construction company couldn’t afford to pay my parents money for the furniture contract my parents have supplied to them. Instead of money, they give us some new houses they have built. So this is the start of my real estate experience. We now have 6 houses to rent where 1 was already been rent and another one is coming soon. We charge them 850 per month. Hmm, well, most of us know that one of the best investment are properties investments. To those who don’t know much, it is favoured simply because :

- As we know, there are inflations every year and as you have properties to be sold in the future, the value of the building will likely increase. Inflation work on your side in this case. If u save money instead of investing in properties, the inflation will eventually erode the value of your saving. Get the point?

- Another advantage is you might not have to pay for the assets as it will be finance by your tenents (if u have them). You might even make some extra cash for yourself without doing nothing! Imagine this, in maybe 10 or 15 years in the future, the properties will be yours for free! And if you wanna make more cash, u can sold the assets or if u fancy passive income every month, you can keep them and collect rentals!

Well, it all seems great right? Well, its not that easy in real life as some investment can go bad, some properties just wont increase in value. It all depends on locations, locations and locations. Well, I guess that sums it up. I actually want to make this post longer but most of us will only read half of the post and navigate away :p feel free to put your comments!