Greed, Ignorance And Worry – A Recipe For Property Disaster
You’re in this business to make money! Sadly, you may not be generating as much money as you sought or expected. Or, perhaps you’ve witnessed how simple it can be to earn a living through owning rental properties, and you can’t get enough of it! In any situation, there are things you are able to do to increase rental income.
Third, is principal pay off. Every time you make a payment, if you have a mortgage loan, then you are paying off principal. Since the principle deducts from your loan balance then you can add that as a component of return. Let’s say that you pay off $2,000 of mortgage principle for the particular year.
You will also have a much smaller window of options because you won’t qualify for as much money without money down. These types of loans are also much harder to find than traditional loans which require a down payment of some sort. Another huge reason to put 20% down is because if you don’t you’ll be subjected to private mortgage insurance until 20% of the purchase price is paid. If you real estate in Africa want a 0% down loan go ahead but be sure you can afford it and it is the best option for your financial situation.
The seller accepted our offer, and closing was set for the last week in January. But things took a turn for the worse; people were burning garbage off a waterway near our renovating house, and a cat died underneath the house, causing a terrible stench. A hole that we had cut in the concrete in the garage to repair some piping had become an entryway for rats. One of them leaped at my fiance and snapped its jaw shut, catching on his pants leg. I watched as my fiance beat it away and ran from a large group of running rats that had exited the garage. We spent several days and nights living out of my car. I was determined not to have to go back to our friend’s apartment until the cockroaches were gone, but our patience was wearing thin, and the weather was getting cold. We went back to the apartment.
It was now December and we were in the process of securing financing. The company, not named, suddenly required more proof of my income. I called the personnel department of my work and had them send out more copies of my W-2 and income statements to a local PO Box of ours. We went to my bank and requested more statements to fax to the financing company. I took up some of my computer tools and fixed our fax machine. We were faxing documents and securing quotes on loans.
You have probably heard the timeless investment adage of “buy low, sell high.” Now is the time when real estate prices are as low as they are ever going to be. They will obviously rebound in the near future and the investors stand to make a lot of money.
Would you like to acquire next with very little money ( i.e, be highly leveraged ) or would you like to make a gigantic down-payment so as to keep more of the worth and boost your passive revenue?
Any kind of laser printer is good but then you usually do not get a copy machine built in, which is needed because you will be making copies of your contracts everyday.
Will this new home be an asset or a liability? If you are not getting a mortgage it will be an asset but with a mortgage a home does not qualify in the true sense of the word as an asset. Assets do not cost you monthly and they create income or increase in value. In the economy of today, homes are not appreciating therefore it is not increasing in value and it is not creating income unless, you plan to lease a portion of it out. Please review my article about the rat race and assets verses liabilities, before making this purchase.