Saturday, September 12, 2015

Can you earn from real estate?

If you own only "1 house", I don't think you can earn from real estate.

Lets say you buy a new house with 100k. After 5 years the price goes to 300k. For sure you are very happy about it.

How can you earn money? for sure sell your house for 300k and earn 200k. Now you have 300k on hand but where do you live? for sure you have to buy a house. So, you go back to the market and look for a house. If you want a house which is similar as your old one (you don't want to downgrade your living standard, right?) Guess how much the new house will cost you? for sure 300k.

So, how much you earn from real estate? negative. Beside, you have to pay all the fee in both selling and buying transactions. At last, you got a lost.

YOU CAN EARN FROM REAL ESTATE STARTING FROM YOU HAVE 2nd HOUSE.

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