Dream About Solution (III)
Wong Pow Long
Unit Trust Consultant ??Coach customer to growth kids education fund????and retirement fund??to million ringgit asset using ??proven portfolio system ???? FOUNDER ??+60125122151
Become a millionaire, there are always multiple ways to get it done. Here is the third method. Invest in property!
During the 2009 global financial crisis, property price is cheap. Let's assume that you have 50k for the initial down payment capital and you brought 2 units of landed property or condominium.
To buy a property, you may not need to use cash. There is a strategy called "No Money Down". The concept works like this. If you brought the condo at RM500k but you take a loan of RM600k. Upon the loan being approved, you get RM100k cash, a house, and a debt of RM600k.
The monthly installment is around Rm 2900 with 4% housing loan interest. If you are able to rent out the property by a rental value of RM2000, you only need to bleed RM 900 per month to sustain the property. Adding in the maintenance fee of RM 200, monthly bleeding is RM 1100. If you have 2 units, your monthly bleeding is RM2200.
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Buying a property is simple, but sustaining the property is hard. To maintain the house loan without default, you will need to spend RM26.4k for 2 houses. For 10 years, this will cost you RM264k. Is there any burden for you?
No, you have RM200k cash advance from the loan and RM50k initial capital. You should not have any issues sustaining the house for 10 years.
To become a millionaire, you just need to sell the condo in 2019, which is 10 years later. If you sold the units @ RM 1.1M each, you will earn RM600k per unit. Multiply it by 2, you are now a millionaire property tycoon.
Does this help? What is the risk?