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 How do u make money from property investment?

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Pai
post Sep 30 2007, 02:33 PM

~ Billionaire in training ~
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3,318 posts

Joined: Dec 2004
From: 1Malaysia



QUOTE(hackwire @ May 4 2007, 04:13 PM)
How much can you really made from Investing a property?
*
IMO, there is 2 way how one can make $$$$$ from property investment.

1. Rental income - The slow and steady way, and good way to make some passive income. If one can have 5 fully paid property for rental income at his/her retirement, most likely you'll have a good retirement income without the need to depend solely on kids or EPF funds. Boring and slow, but a sure way to build one's wealth and REAL assets.

2. Flippers - Higher risk and much faster method, where one usually speculate and buy developers unit and then sell it off for decent gains upon completion. Decent properties in KV tends to appreciate on average of 20% from its developers price. Of course when you speculate, there a higher chance that u migh get burn if the deal went wrong. Below are real examples for flipped properties in a simplified version :



Property name : Parkview tower @ KLCC by Mayland
Developer's price : from RM180k
Current asking price : from RM330k


ROI

Tenure of investment : Bought in early 2004 duering developers launch and sells it off early 2007, few months after CF issuance, 3 years

COST
Downpayment@10% : 20k
Interest paid in 3 years : 10k(approximately)
Other misc cost (lock-in, legal etc) : 10k
Total cost : 40k


PROFIT
Sell off for 310k early 2007 : 310k- 180k(purchase price)
Gross profit : 130k


Nett profit after 3 years : 90k
ROI per anum : 108.33%




Cool huh? wink.gif

Man I wish I was born earlier and bought one back in 2004. Just started working back then hence no $$$$$ cry.gif

 

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