Apr 20 2006, 06:59 PM
QUOTE(hackwire @ Apr 20 2006, 08:29 AM)
anyone attended her course before?
according to my friend , she buys property by buying her first property and than expanded to 78 properties now.
eg.
First house is RM 400K
Deposit of 10% is only Rm 40K
You Rent it out RM 1800K
1 year you take Net Profit (RM 300 x 12 months) you earned about RM 3600 per unit per year.
You do the same for the next property and multiply them in 10 year time.
Same time your property appreciates too.
Hi,according to my friend , she buys property by buying her first property and than expanded to 78 properties now.
eg.
First house is RM 400K
Deposit of 10% is only Rm 40K
You Rent it out RM 1800K
1 year you take Net Profit (RM 300 x 12 months) you earned about RM 3600 per unit per year.
You do the same for the next property and multiply them in 10 year time.
Same time your property appreciates too.
Did you do any calculation?? To take a 30 years loan at 6.6% for 360K, your monthly payment is $2,300. If you rented it out at $1,800, you lose in cash flow of ($2,300 - $1,800) = $500 per month. If you do it a few more times, you will be bankrupt..
Where is the net profit?? You have negative cash flow.
To make a profit of $300 per month, your monthly payment need to be $1,500 aka you can only take a loan of 235K. That means you must put in 400K - 235K = 165K.
To put in 165K and only earn 3.6K per year, your earning is only 3.6/165K = 2.67%
Why don't I just my money into FD and earn 3.7%??
Please noted that I have not put in any maintenance or quit rent and so on...
Dreamer
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