Real Estate
Investment Guide.
Purchasing a property doesn't mean you have invested in real estate:
I purchased my first property when I was only 23 years old, just two years in my first job (yes I have been in the rat race a while ago).
In fact, it was
not an investment because I lived in it. It was an expenditure.
It could have been turned into a lucrative investment if only I had let it to some tenants. I would have had to go and live at my parents and, at first, I didn't choose to do so.
Looking back, I regret that I lived there because even though the property matched my budget, it didn't match my lifestyle. So I ended up selling it two years later for about the same price I acquired it for.
By the way, getting it wrong did make me so spare cash: I had sold the property for the same usd 100 000 I had paid for it but I got some spare cash in the bank after the sale was made because I had repaid the mortgage for two years. Therefore my
equity in this property had increased.
Learning the ropes:
My second purchase was much wiser because it featured a spare bedroom which I let to a student. That was the first time I created passive income (rental income) and
I got hooked!
By the way, I definitely recommend anyone to let a bedroom because it doesn't cause as much trouble as you may think and it really makes a difference to get a taste of that tasty rental income. I was 26 years old at the time.
When I turned 27, I decided it was time for me to get out of the rat race.
I thought it would be easy: I had a very reasonable lifestyle, only had a girlfriend, no kids and my only flat (my second purchase described above) was making more money than the mortgage. I had managed to get three students taking care of that flat like if it was their own.
Retrospectively, getting out of the rat race was not so hard, just a bit scary to do differently than anyone else.
I wanted to get more rental income and quit my job. So I decided to keep my job a couple more months until I could secure the refinancing of my flat as well as the mortgage for my new purchase.
Purchasing real estate with no money down: Not that hard!
Six months later, I had increased the mortgage of my flat by usd 50 000 - that's called
refinancing. I used that money to sign on a new three bedrooms flat.
By that time I also had a usd 150 000 mortgage secured for the purchase of the second flat.
That's how I ended up getting this usd 200 000 new flat without taking a penny out of my pocket.
Of course, the next day,
I quit my job and got in the new flat to put a wall up in the dining room and create an additional bedroom, repainted the whole flat in beige and did a couple of other things with the help of a usd 2000 per month handy man (who was also friend).
That took me a month, and it took me another month to recruit four tenants (straight out of backpackers hotels) to fill up the four bedrooms.
That's how I personally got started in real estate...
Investing in Real estate in the safest way to make it in the investment world.
There are tons of stories of investors who have lost everything they had in the
stock market. On the other hand, if you do your homework, investing in real estate is a lot safer.
If you happen to know a little about plumbing, electricity and decoration, then there is a lot of opportunities out there for you to make money.
As always, there is no quick way to make money. You will first have to make mistakes and learn from them.
Read this
Real Estate Investment Guide before you step in. It should help you out.
Guide to real estate investment
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