Search this blog

Home About Contact

Search The Web

Custom Search

Tuesday, November 4, 2008

How To Retire As A Millionnaire By Investing in Real Estate?

Okay,now let's get down to business.Do you really want to retire as a millionaire and that too by investing in properties? You can, if you really want to. It's not really that difficult. You only need to be disciplined in your savings. The faster you start saving and the more you start saving, the better it is.

All you need to do is from the age of 30 to 60, try your very best to purchase 6 properties worth 100,000 each, with potential of market appreciation. Since our plan is to start at the age of 30, we should have accumulated, over the years of working, at least 25,000. This amount would then be used as the down payment for the property purchased.The remainder can be paid of by taking a 20 years loan.Every 5 years, you have to repeat the same action: Buy a property worth 100,000.The 1st, 2nd and 3rd property would have been paid off by the time you reach 60 years old.So, the rental income that you can get from the properties that has been paid off can be used to pay off the rest of the properties. In fact this enables you to pay off the later properties at a faster pace and not as the initially planned 20 years any more.

When all this is done, you will have a passive income and can retire comfortably. Not to mention that your properties also have potential of having appreciated over the years.

Assumptions made:
- retirement age: 60
- you've got at least 30 years to retirement
- you save around 500 dollars every month: 500x12x5 = 30,000 every 5 years
- rental income is minimum 500 dollars a month
- each property purchased is 100,000 dollars

Warning: You must also be prepared to cover the monthly instalments from your own pocket in case your tenant defaults his payment or when the property is without a tenant. Any cost incurred for repairs must also be born by you.

No comments: