My first encounter of the magic word "passive income" is about 8 years ago when I am in final year of my study. I bought a discounted paper back edition of Rich Dad Poor Dad which cost me about RM50. A huge sum of money because I am still student.
On my first year of employment, I am in dilemma because I was offered cheap house by my friend. Less than RM40k. My dad (not a rich dad type I guest) did not encourage me to buy the property since my income was not stable. But the word "passive income" make me determined to buy the house and once I get the key, I rent the house.
I need to up hundred ringgit per month on house installment because my loan tenure is very short. After 5 years, It will become positive.
Property or house is one of the simplest (not easy) way to get passive income. Put deposits, buy house and rent it. Makesure the location of the house is strategic. Near city and near to the public transportation. Buying cheap house instead of condo enable you to easily rent the house.
It's better to buy multiple low cost house than to buy single condo. The risk is split and the return is higher.
Let me put example. I rent my 4ok house each month is 300 bucks. My friend rent his 100k house for 550 bucks. Which is better (80k = 600/month) or (100k = 550).
But bear in mind investment is about risk. Only invest when you can bear the risk. Investment without risk is totally lies.
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