Why buying overseas property?

Discussion in 'Buying Overseas Property' started by kevin6, Mar 25, 2012.

  1. kevin6

    kevin6 New Member

    7 top reasons to create YOUR wealth through real estate…..

    Reason # 1- Passive Positive Cash Flow:

    The best way to become truly financially free! Passive positive cash flow allows you to spend time on things you want to do, not on things you have to do and this is key! Whether it is spending time with your loved ones or start a new project, it is your choice! In our opinion, this is the most important reason to buy, fix and rent real estate properties.

    Cash flow is calculated by subtracting all the property expenses, such as taxes, insurance, and others, from the monthly rental income. Real estate experts do not buy rental properties unless the cash flow is positive. Obviously, the bigger the monthly cash flow, the better the Return On Investment (ROI). This strategy is known as BUY, FIX & RENT.

    Reason # 2- Create equity by renovating distressed properties: Sophisticated investors intentionally purchase properties at wholesale prices because the properties could use some cosmetic repairs. After these repairs are taken care of and improvements have been made, the value of the property will automatically go up. This results in an immediate increase in equity, and an opportunity for a family to own a great home thanks to you! This strategy is known as BUY, FIX & SELL.

    Reason #3- Appreciation over the years:

    Over the years, material things tend to lose value like cars, electronics, machines, etc... Real estate on the other hand increases its value over time. We are all witnesses that appreciation does not always happen in a uniform way, in some years we even face depreciation. But the truth is, appreciation grows an average of 10% annually, this means that it is very likely that some properties could double their value in a ten year cycle.

    Reason #4- Leverage:

    Is the ability of controlling an investment through a loan requiring the small amounts of out-of-pocket cash and increasing your return on investment. This is great news! You can now own many properties instead of just one with the use of leverage. As an example, leverage allows you to buy or control a $100,000 house with only 10% or 20% down payment.

    Reason #5- Inflation increases rental income:

    Rents usually increase with inflation, while mortgage payments on the property remain the same. This increases cash flow by receiving more rent income without increased expense for holding the property.

    Reason #6- Reducing the mortgage:

    Amortization, or paying down the loan, frees up more investment monetary resources to increase leverage. Investors sometimes use increased equity in one property to free up funds to invest in the next one. In rental properties, the tenants will pay be paying off your mortgage debt each time they make a monthly payment.

    Reason #7- Depreciation expense is tax deductible:

    By buying and holding real estate properties investors have the right to deduct depreciation as an expense when the yearly tax reports are prepared. This is a great way to save significant amount money each year instead of paying it to Uncle Sam. Ask your accountant for more info on how you can benefit from these and other perks once you become a real estate investor!
  2. Norbert

    Norbert Senior Member <br /><img src="http://img.propertyc

    This must have been added in 2006

    In which country are these REASONS still applicable Anno 2012?

    Last edited: Mar 26, 2012
  3. CSQTownPlanner

    CSQTownPlanner New Member

    Nice post.. It really is a very valuable and knowledgeable post. I like the way you have defined the process. To buying the overseas property is a best investment to increase your property and wealth. And if you want to take more information about it you can contact with real estate agent and search on web..
    town planner melbourne | urban planners | planning consultants
  4. Norbert

    Norbert Senior Member <br /><img src="http://img.propertyc

    But increasingly less applicable!

    Yes, a few years ago this might have been useful information.
    But tell me where this applies NOW!
    My most recent question was never answered!

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