Saturday, April 28, 2007

My Safest Strategy to Invest in Real Estate

I play a very conservative game in real estate investment so the chances that I lost are very low. This is what I do. I will only buy a house if I have enough cash to buy the house. Assuming the house $300K, I will have $100K down payment and take the $100K loan from bank and finally invest the difference (which is $100K) in other investment (e.g. stock, mutual funds and etc.) to make sure the investment that I invest are higher than the bank's interest. Therefore, the chances that I lost in real estate investment is very slim and plus the property appreciation, how can I lost the game?


Nadlique said...

But wouldn't that also limit the amount of properties you are able to purchase?

ChampDog said...

Yes, you're right. It will also limit the amount of properties I can buy assuming we do not have enough cash. I’m doing this because I’m a conservative investors and I cannot bare the cost of losing this game.

Another reasons is the property that I bought around the area has 5%-8% appreciation, which is very low for me to buy it as an investment. 5%-8% is simply not enough to cover my bank interest unless if I do not have enough cash to invest the difference. It should have at least 20% in my opinion, I will probably bet on it.

What if I predict wrongly? Can I still earn? This is what the biggest problem happen in the US now due to the subprime crisis. We are no longer can predict the future as we used to be. Well, of course greater risk, greater return. But, I’m not a risk taker. I want to get rich slowly.

Anonymous said...

yes.. just take it slowy to make sure the assurance of success in investing.. why also try to have a personal financial adivisor

homes glen allen virginia said...

Real estate investing is no doubt a good way where you can invest your money and get good return on your investment. Many people don't have idea how to invest into real estate then I think they first work with a good real estate agent to get some basic strategy.

ChampDog said...

Here in Malaysia at least, I don't think it is a good idea for first time buyer to go through agent to learn about basic strategy.

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