Cash Flow strategy or Capital
Gain strategy?
The common answer which
I have gotten from those whom I interviewed was both, that is, they wanted to
have cash flow as well as capital gain. Though this answer was not wrong, but,
in my opinion, I would deploy cash flow strategy to acquire real estate in my
portfolio. For one simple reason, capital gain would follow if tenants are
willing to pay rental and rental increment as time period goes. In other words,
no capital gain if tenants are not renting the property.
Recently, I read a book
called ‘Buying Real Estate Overseas for
Cash Flow’, and the author was emphasizing to the readers of buying
overseas properties for cash flow. Why? 2 main reasons – firstly, for
retirement planning and secondly, leaving a legacy for heirs.
There are many ways of
planning the retirement. But, many investors like yourself would agree that
real estate should always form part of our retirement fund. Real estate is immovable
and they are considered as a ‘fixed asset in our balance sheet’. As fixed
asset, they should always generate a steady cash flow perpetually for
supporting our quality retirement living. Would you agree?
As parents, we work
hard mainly is because of our children. Thus, leaving a legacy for heirs is
always what we hope to give to our next generation. Think about this – how
would you feel after a certain number of time periods, the property become free
for our heirs. Wouldn’t you be happy to see that?
Cash flow strategy is
key in finding real deals in real estate investment in Perth property market.
What would be yours
today?
Please feel free to share your thoughts and views.
I look forward to hearing your valuable insights.
Stay safe
and keep healthy.
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