condos are still banks in the United States not to finance, so small investors still buy the entire inventory for cash. The math is quite simple:
$ 35,000 purchase price
acquisition and renovation costs 3.500 $.
rental income net of levies, insurance and taxes on average $ 4,000 pa
ROI = 10.4% - certainly not great but pays higher than fixed deposit and safer than a stock market investment.
why we offer our clients and investors immediately following Model:
Owner Will Carry (debt financing by the owner)
example
Condo - 85 square meters, gated,
purchase price with renovations and acquisition costs:
$ 38,500.00
The property is immediately available on the market for sale, sale price $ 55,000.00
The financing by the investor and yields are shown in the table below:
Return after 12 months of re-sale is already over 40%
In the following 5 years the investor redeems itself with a return of interest & repayment 15%.
additional advantage: the investor has to pay no levies, insurance or property tax. This alone will offset the new owner of the property.
risk for investors from overseas:
currency fluctuations in this bill not be considered.
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