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.
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.
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.
Free eMoney Tips ebook (April 2009 Edition)
We proudly recommend the free first edition of eMoney Tips ebook to you. This is the baby of the first group writing project in Malaysia contributed by personal finance bloggers, practitioners, and even some readers of blogs. It shares the ideas and tips of personal finance such as wealth creation, insurance and investment. The ebook is now available for FREE download.
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.
Recent Comments