Real Estate: Auction Properties, Rentals and Inflation

You can make a lot of money if you do property flipping by buying and selling your property like a condominium or a bungalow. You need to do a lot of property research by checking out the premium places that are central and convenient to reach and are near to amenities like a hawker center, hospital, schools, shopping malls and even little sundry shops and bakeries. Properties that are near to such amenities are more popular and will fetch premium prices compared to another property far away in no man’s land.

Check out Auction Properties

You can also check out auction properties which sell about ten to twenty percent below market value where the price will keep dropping by ten percent for each unsold lot that is auctioned by the bank. Each time the bank advertises the property for auction and there is no buyer, the said property will then be cheaper than its previous price to make it more attractive for house buyers to come in and purchase the property.

Auctioned properties are available all the time because the current owners may have cash flow difficulties, be out of a job suddenly and hospitalized and therefore cannot service the monthly mortgage to the bank. As a result, the bank will take back the property and auction it to the public to reclaim its loss. You can check out in the press for apartment for sale or house for sale column.

Rental Income

Other than property flipping, you can also consider your apartment for rent, property for rent, or house for rent to collect rental income monthly. Just make sure that your tenants are happy to rent from you by offering to paint your property according to the favorite colors of the tenant, once they have rented from you for a period of time. Rental income will give you financial stability and help to offset your expenses.

Hedge Against Inflation

By investing in property, you can hedge against inflation as the property prices will appreciate over time. That is how millionaires are made from property investing. According to the rule of 72, if the inflation rate is 4 percent, then it takes 18 years for your money to become half its value. This is frightening because during your retirement years, you are no longer employed and have no more main source of income. And if you live to twenty years or more after retirement, your money will have to stretch that long so that you can continue your lifestyle as before.

Besides hedging against inflation, you can also collect rental income and make money in the process by buying and investing in properties. They are more stable form of investment compared to buying stocks and shares which will fluctuate wildly according to world events which may be unpredictable.