Tuesday, August 5, 2008

Is Your Property Investment a "Real" Investment?

It is "Yes" when: Selling price > *Property Total Cost
  • When the property was sold,
  • Property was sold higher than total cost,
  • Rental is higher than monthly repayment,
  • the gain on sale is greater than bank FD.

Most of the time it is "No" because: Selling price =< *Property Total Cost

  • Gain on paper without selling out the property,
  • Selling equal/lower than the property total cost,
  • Rental is equal/lower than the monthly repayment,
  • the gain on sale is equal/lower than bank FD rates,
  • Investors serving higher interest.


*Property Total Cost = Property buying price + other cost (Legal fees, regulatory duty, taxes, bank charges, interest rate, brokerage fees, administrative fees & etc.)

Hints: Do not always think, property investment is a guarantee investment !