Top six tax deductions for landlords

Rental real estate provides more tax benefits than almost any other investment. Often, these benefits make the difference between losing money and earning a profit on a rental property. But tax deductions are worthless if you don’t take advantage of them. Here are the top six tax deductions for owners of rental property.

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Auctioned Property List Monthly Update

Do you know that REIJB.com now updates all subscribers every month with the latest auctioned property listings from more than 10 banks? We have sent the first update with more than 80 auctioned properties in Johor to subscribers last week. We then followed up with a recommendation of auction unit at Sri Wangi apartment. We are going to start sending updates of auctioned properties for June by end of this week. Also, we will continue to recommend good auctioned properties to you if we have encountered any.

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What risk you may face if you borrow too much and how to manage it?

The power of leverage can help you to magnify your return on real estate investment through financing. However, it can also magnify your repayment cost even with a slight increase in interest rate, if you borrow too much for your investment property. In order to have a “robust” cash flow from your investment regardless of economy condition, we encourage for each investment property, monthly installment should not exceed 60% of the income generated from the property. This is to provide some room to maintain a positive cash flow should your bank revises interest rate to even double of the existing rate.

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Is it possible to have an infinite return on investment (or free money)?

If you have read Robert Kiyosaki’s books about financial education, you must be familiar with the term “infinite return on investment” mentioned in many of his books. If you have not heard about him, an investment with “infinite return” actually means an investment that doesn’t require any money from you but you receive return in term of money from the investment. In this article, we will discuss a real case of such investment in real estate.

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How to turn a property to become worth borrowing/leveraging?

A reader was asking for our advice on how to turn one of her rental apartments in Penang, which was supposed to be a not-worth-borrowing property, to become a worth-borrowing one. Using this real case, we will discuss in this article about how an investor can improve the return on his/her investment property from one of the investment tools exclusively given to real estate investment – refinancing.

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Is economy on her way of recovery?

Recently we have been hearing media and papers talking about the recovery of economy. Is economy really on its way of recovery? Well, we have seen stock markets rally for more than a month. However, over the last two weeks we have seen a number of interesting items which appear to give hope for a new global bull market and a number that do not.

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How to increase the return of an investment property to more than 20%?

We have acquired a rental apartment at the price of RM125,000 in end of last year 2008. The apartment was rented out in te middle of March 2009 before the completion of its furnishing work. Its monthly rent is RM1300. Initial annual return of this property was 8.54%. In this article we will show you how we increase its return to more than 20% by using the three advantages of real estate investment: cash flow, leverage and control.

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Real estate investment Q&A #3

We have received a lot of feedbacks and comments from readers which help us to improve the contents of this blog and make reijb.com a place of discussion about real estate investment. We hereby summarised some of the questions and answers which you may have missed but yet interested.

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How far away should your investment property be?

How far away can you live from your investment? This depends on three factors: the size of the investment, the type of investment and the amount of management you have. A small property being managed by you should be close enough to make it convenient for you to visit the building to show vacant apartments or attend to problems. If your investment is a large one, where resident management handles every thing, you can live in a different city or state if you wish.

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