3 reasons that makes real estate investing sexy

Leverage

One of the most powerful thing about property or real estate investing is that you can harness the power of leverage; also known as “debt”. Banks and financial institutions looooooooove property, so they’re often very willing to loan you money to finance your property purchase. How much they can (and will) loan you will depend on

  • how much net earning and debts you have
  • the value of the property

They will be willing to loan you more based on the % of the value of the property.

Practical: people gonna live some place

Rental properties aren’t some complicated rocket science stuff.

  • People will need a place to live
  • People will need a place to work

That pretty much sums up rental property investing. Of course you will need to consider nuances such as size, location and amenities etc, but those 2 points above is key.

Tax benefits (depending on your country)

This one can be tricky, depending on your country’s tax laws, and since I’m no accountant nor lawyer, I cannot advise on this. But there are often tax breaks and incentives, that’s tied to mortgage loans that you can consider; as well as expenses that you can attribute as legit (of course it needs to be legit eh) business expenses.

Bonus Point: refinancing magic

One bonus point on refinancing is this: if your property increases in value (they call this capital appreciation), you can actually “pull” out the value in cash by refinancing your mortgage loan…and use the money to buy another rental property. This is on top of rental markets going up and you not only get more rental yield too. Nifty huh.

Where To Next?


  • Subscribe to my newsletter ā€“ no spam and just my best stuff. Unsubscribe anytime.
  • Go to Homepage of nigelchua.com
  • If you like videos, head to All Videos ā€“ all the latest (and all) videos are uploaded there.
  • Visit the Blog to read the latest articles and videos.
  • Head over my Resources page to the products and services I use to improve business, relationships, health and more.
  • I recommend everyone to learn to start an online business for so many reasons: low cost, valuable skill (marketing), potential for passive income, it works 24/7 for you and no income ceiling. There's a free membership at this platform which I'd been part of since 2015 and it's where I learnt how to earn my first $100 online. See you on the inside.