Good Investment IV?

We should bear in mind that the example given is a real case and it is based on most optimistic assumption, meaning that the market price as well as the rental given is in the highest range. Besides, we also omit several transaction costs such as legal fee, valuation fee, management fee, broker fee, maintenance fee, insurance charge, local council assessment fee….etc. We also give the best situation where in the example given, the rental collected is uninterrupted for the whole 360 months. In the real life, we know that it’s impossible to maintain such record. If we consider all those factors, the real net gain will be lesser as shown in the example. Again, the example given is not located in the unfavorable outskirt region. It’s within 10km distance from the city centre, a well developed residential and it’s the landed property where it’s the most sought investment for the real estate investors. With such optimistic assumption and good example given, still it’s only gives mediocre investment result. So, I wonder why so many people still having faith to this type of investment.

An investment should remain to its objective, that’s to create values to the investors, that’s not only safeguard against inflation, but also giving a reasonable good return to the investors. Most often, the investment made is based on sacrifice of the investors’ immediate enjoyment to gain the future pleasure. . If, the investment does not give a reasonable good return, there is no point for the investors’ sacrifice.

Note: We are not against of buying real estate. We are just showing the fact to the people who might still in the “Fortune Dream” because of real estate investment. There are plenty of investments that could bring better return as compared to real estate investment. When talking about investment, think business. Most often, these two can’t be separated.

Real estate posses an emotional value to everyone. After all, everyone needs a home, a lovely home for their families, a place for their families to share the greatest moments. Those moments are the most precious and invaluable, that’s the monies couldn’t buy.
“A House --- $ 270,000.
A Happy Family --- Priceless.”