Other investment – apartment rent & sale

I would like to share with you my other investment approach (instead of stock investing). This way I use also for my 10 Years For Retirement plan. For more than three years I invest into apartments for rent, but I do it little bit different than many other people.

We are not living in US, but I will show all prices in USD so you can easily understand it. The amount itself is not so important as it will be different from country to country. The thinking way is the most important so I recommend focus on this.

I bought two small apartments in my current city. For this time I will explain only first apartment. Cost was $40,000 so we used $8,000 from our money. For the rest we used 30 year mortgage with 5 year fixation. Let me say that I don’t intend to hold this property for 30 years. If price will be good I want to sell after 5 years.
When I calculate all expense I earn every month $200 from rent which is $2,400 per year. As you can see I have investment return 30% each year ($2,400 / $8,000). But the best of this is that current apartment’s price is now $60,000 and price is still growing.

So after 5 years my total incomes will be $32,000 (5*$2,400 + $20,000 = $32,000). Thanks to this after 5 years I will have $40,000 on my bank account instead of $8,000 ($8,000 original investment + $32,000 earned). As this is good income for my 10 Year For Retirement plan I want to share this with you as well.

What is unique point?
Many people buy flat or apartment as well, but they don’t have same investment return. The reason is simple, in case you buy a flat for $40,000 (all from your pocket) and you get $4,800 by renting (approximately 2 times more than with mortgage).

You earn 12 % annually and sometimes much less, but if you use leverage as I do, you can earn much more with no higher risk (my monthly mortgage pay is around $200 so this is not big problem for me to cover if any problem happen). So instead of putting all your money to flat, think first about this investment strategy.

Of course I use the situation that bank mortgage in my country are very cheap now (around 2% for 5 years fixation), so you also need to check this as well during your investment return calculation. In case you don’t know, how to make this calculation, let me know and I will prepare sample and share in next article.

Do you have any other tip, you want to share with other?
Join our team and share your ideas with others as well.

Let’s help each other to make our dream come true (retirement within 10 years).

If you like this web, please search more about us here.

Thank you for your time.

27 thoughts on “Other investment – apartment rent & sale”

  1. I wish to express my appreciation for your kind-heartedness giving support to those individuals that require guidance on this important niche. Your very own commitment to passing the solution throughout appears to be particularly functional and have usually helped some individuals like me to get to their dreams. The insightful guide implies this much a person like me and extremely more to my office colleagues. With thanks; from each one of us.

  2. I’m usually to blogging and i really admire your content. The article has really peaks my interest. I’m going to bookmark your web site and keep checking for brand new information.

  3. There are definitely a whole lot of particulars like that to take into consideration. That could be a nice level to deliver up. I offer the ideas above as general inspiration but clearly there are questions just like the one you deliver up where the most important thing shall be working in honest good faith. I don?t know if finest practices have emerged around issues like that, but I’m sure that your job is clearly identified as a fair game. Each girls and boys really feel the affect of just a moment抯 pleasure, for the remainder of their lives.

  4. I am also writing to make you be aware of of the perfect encounter my friend’s daughter found browsing your blog. She picked up a wide variety of things, not to mention how it is like to have an incredible helping character to make folks very easily comprehend several advanced issues. You really did more than our own desires. Many thanks for providing these informative, dependable, explanatory not to mention unique tips about your topic to Mary.

  5. I together with my buddies came reading the good tactics located on the blog while the sudden came up with an awful feeling I had not expressed respect to the blog owner for those strategies. Those young boys appeared to be absolutely thrilled to see all of them and already have simply been taking advantage of them. Appreciate your indeed being well kind and then for settling on certain nice ideas millions of individuals are really needing to understand about. My very own honest regret for not expressing appreciation to earlier.

  6. I was very happy to search out this internet-site.I wished to thanks for your time for this excellent read!! I positively enjoying each little little bit of it and I’ve you bookmarked to take a look at new stuff you weblog post.

  7. An attention-grabbing discussion is value comment. I feel that you must write extra on this subject, it might not be a taboo topic but usually people are not enough to talk on such topics. To the next. Cheers

  8. Needed to send you a bit of note just to thank you so much as before regarding the extraordinary tips you’ve featured in this article. It is so remarkably generous with people like you to give without restraint all a lot of people would’ve marketed for an electronic book to help make some cash on their own, chiefly now that you could possibly have done it in the event you decided. These ideas also served to be a fantastic way to be aware that the rest have the same dream just as mine to understand many more on the topic of this condition. I believe there are several more enjoyable occasions up front for individuals who check out your website.

  9. There are some attention-grabbing cut-off dates in this article however I don抰 know if I see all of them heart to heart. There is some validity however I will take maintain opinion until I look into it further. Good article , thanks and we want extra! Added to FeedBurner as effectively

  10. My husband and i were very fulfilled that Albert managed to finish up his researching from the precious recommendations he made out of the web site. It is now and again perplexing to just be giving freely guidelines which usually other people could have been making money from. And now we figure out we now have the blog owner to appreciate for that. Most of the illustrations you made, the easy site menu, the relationships you can help promote – it’s got everything incredible, and it is facilitating our son in addition to our family imagine that that situation is interesting, and that is extremely important. Thank you for all!

  11. Thank you for your own hard work on this site. Betty takes pleasure in setting aside time for research and it’s simple to grasp why. All of us hear all regarding the compelling manner you make vital steps on the website and as well increase response from visitors on this article and our own child is certainly studying a lot. Have fun with the rest of the year. You’re performing a tremendous job.

  12. Youre so cool! I dont suppose Ive learn anything like this before. So good to search out any person with some unique thoughts on this subject. realy thank you for starting this up. this web site is one thing that is needed on the net, somebody with a bit originality. useful job for bringing one thing new to the web!

  13. Aw, this was a very nice post. In idea I would like to put in writing like this additionally ?taking time and actual effort to make a very good article?however what can I say?I procrastinate alot and by no means appear to get one thing done.

  14. My husband and i were quite glad Peter managed to finish up his survey from your ideas he had in your web pages. It’s not at all simplistic to just be making a gift of helpful tips that other folks have been trying to sell. We really keep in mind we have the writer to be grateful to for this. These explanations you have made, the simple blog navigation, the relationships you can help to foster – it’s everything fabulous, and it is facilitating our son and the family understand the issue is brilliant, which is particularly essential. Thank you for everything!

  15. Thanks a lot for providing individuals with such a wonderful possiblity to read from this website. It is usually very superb and full of amusement for me personally and my office peers to visit your blog at least thrice every week to read the new items you have got. And indeed, I am also at all times satisfied with all the magnificent inspiring ideas you serve. Selected 2 points in this article are particularly the finest we have had.

  16. There are definitely numerous details like that to take into consideration. That is a nice level to deliver up. I offer the ideas above as common inspiration however clearly there are questions like the one you convey up the place a very powerful factor will likely be working in trustworthy good faith. I don?t know if best practices have emerged around issues like that, however I’m sure that your job is clearly identified as a good game. Both boys and girls feel the affect of only a second抯 pleasure, for the rest of their lives.

  17. I simply wished to appreciate you all over again. I’m not certain the things that I would have worked on without the entire ideas discussed by you directly on this field. It had been the traumatic crisis for me personally, but seeing a new expert tactic you treated that forced me to weep over happiness. I will be grateful for your assistance and in addition believe you comprehend what an amazing job you’re accomplishing training the mediocre ones thru a site. Most likely you have never met all of us.

Leave a Reply

Your email address will not be published. Required fields are marked *