How To Make Money That You Don't Work For

in #money7 years ago

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To make money that you don't work for we can look at the real estate market. So if you invest in real estate property for rental and it is a positive cashflow every month ie the money that the tenants pay covers all your costs and puts some money in your pocket every month there are 5 ways in which you are effectively making money that you haven't actually worked for:

  1. Appreciation - the value of the property increasing over time

  2. Tenant payment on the principle of the mortgage debt - the actual amount you have borrowed getting paid down by the tenant

  3. Cash Flow - the profit after all expenses every month that goes into your pocket

  4. Tax benefits - things you can write off against your investment property/property business which in effect means the taxman takes the strain of certain things that would normally come out of your earnings

  5. Inflation hedging - owning the property is a good hedge against high inflation as if inflation takes off your real estate property over the longterm is more likely to at least keep pace with the inflation if not beat it.

Real estate property is a great way to diversify form cryptos and make an income and store weatlh. It is also one of the best ways to use leverage pretty safely for example you put $10k down as a deposit on a $100k property and if in 10 years the value of the property has doubled you haven't just doubled you initial $10k you've 10x it to $100k all the time using the tenants rental to pay the mortgage and expenses!

DISCLAIMER: This is not financial advise and represents my personal experience and or opinions. This is not to be taken as investment advise.

Please RESTEEM AND UPVOTE IF YOU FOUND THIS USEFUL!!!

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