01-01-2024, 04:50 AM
Investing in real estate usually requires a lot of money, like hundreds of thousands of dollars. In my home country, you'd typically need at least $200,000 to buy a house. If you rent out the house, you might make around $500 each month. Now, if you bought the house outright with your own money, that $500 income is pretty good. But if you used a bank loan to buy it, you'll likely have to pay about $500 as a loan repayment installment. So, in the end, you're not really making any profits.
If you wait for 15-20 years to pay off the entire loan, you might sell the property and get back your initial investment. However, the property's value might decrease over time due to depreciation. So, practically speaking, you might not end up making much profit. To really benefit from real estate investment, some people buy and sell properties quickly to make faster money.
If you wait for 15-20 years to pay off the entire loan, you might sell the property and get back your initial investment. However, the property's value might decrease over time due to depreciation. So, practically speaking, you might not end up making much profit. To really benefit from real estate investment, some people buy and sell properties quickly to make faster money.