Friday, March 7, 2014

Two steps to double your income through real estate

▪ In what state of mind would you be if you were to add some EUR 10 000 to your future income without having saved a single penny ?

I published on 5 November 2012 an article in which I anticipated a drop in French real estate 63%. In such circumstances, how is it possible to make money in a bear real estate market?

What I will reveal you now ignored 90% of real estate investors beginners ... but it could help you to multiply your future income by two or more.

You'll see why in a moment ...

Step 1: find the right deal
A good deal is what? This is to purchase a property at a below market price. If you are new to this area, I suggest you focus on the small area studio type or two -bedroom city center over the age of 20 years. If the situation is excellent but the seller has difficulty finding a buyer, it certainly means that housing has one (or more ) drawback (s) in its design.

Most of the time , just improve some strategic points as an additional bulkhead, kitchen fittings , insulation, or paint to make a nest that your tenants will tear . And that an investment in work often representing less than 10 % of the original price.

Step 2: make your investment pay by a bank at a fixed rate over a long period with a very low intake
Forget the price of housing and work because it is not you who are funding but your banker. In addition , monthly payments will be paid by the tenant.

Real estate has the peculiarity of being :
- Cheap when access to credit is difficult,
- Expensive and when access to credit is easy !

Moral: 100 years ago that 95% of people say that it's never a good time to invest in real estate ... while 5% build fortunes in any economic situation.

In other words, when prices are low, " 5% " buy with a lot of cash , and when prices are high , they bought with little cash ... But ultimately, it is the same housing ... so ?

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Why France will STILL go bankrupt
Degradation by Moody's concerns on the side of Germany, unflattering portraits in the press ... the noose is tightening around our country : what will happen now - and especially how you prepare?

Everything is explained here ...

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The savvy investor should not commit the mistake of confusing the price of real estate value "credit" and value "income" . I will have the opportunity to explain it all in detail.

For example, if you invest in a studio you turn into a two-piece value "credit" of EUR 100 000 by adding a contribution of Euro 8000 , what could happen?

- Spending 550 euros / month ( monthly payments and taxes)
- Rent collected 600 euros
- Either 50 euros / month in your pocket.

In addition to being some of owning the entire property and rent at the end of the loan you cash in 7.5% of revenue over 8000 euros actually invested !

And if you want to sell your rental property? You do not sell a property but a rental return on the amount actually invested : contribution !

The day the property will affect the famous 63% reduction , access to credit is terrible and you pocket the cash to do other business ...

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