How I will achieve financial freedom from real estate

[Deleted member 26859]

How I will achieve financial freedom from real estate


I will buy a house for 5% deposit, about £20k. which i nearly have enough

live in it for a year(because if u buy and dont live in it, it classes as buy to rent and they want u to put down 20% deposit )

fix it up while i live in it/rent out a few rooms on the sly


rent it out for 1-1.5k per month after 1 year

mortgage repayments are about 750-1000,


So I'll use the tenants rent payment of 1-1.5k to pay down the mortgage repayments, and have 200-500 spare pure profit in my pocket per month


but that positve cash flow isnt the only profit u get in real estate. there is actually 6 wealth generation benefits when you do a buy-to-let

1. natural appreciation
houses on avg go up 3% per year in appreciation. you will get 3% of 300k (house worth) per year which is like 10k per year profit. but you only get that profit when you sell the house. but it still adds to ur net worth

2. tax benefits
"Main tax benefits of owning rental property include deducting operating and owner expenses, depreciation, capital gains tax deferral, and avoiding FICA tax"
you get to save money on taxes

3. positive cash flow
the 200-500£ positive cash flow I get from the rent money leftover after paying the mortgage repayments

4. equity
the tenant is giving me the rent money and im paying the mortgage with it, so they're paying off the house for me, and every month i gain more equity in the house. after like 1 year ill have 12k or so equity in the house. 12k added to my networth which can be cashed out when i decide to sell the house

5. buying a deal
searching around for a while to find a good deal and buying below market price, thats immediate profit already

6. forced appreciation
causing the house to be worth more, by force. for example doing work on it. adding another bedroom or bathroom, cosmetics on it etc


after the first house, i will buy 1 more every year and hopefully it will snowball

 

[ongongfr]

k

 

[Deleted member 26859]

bump

 

[comingtothisJFL]

income? depends on ur income and credit score on how much banks can loan you, also what typa house you trying to buy? tbh this is the safest and steadiest way to make good income if you can manage because buying houses in this economy is fucking brutal even two income house can barely afford a shithole of a house

 

[Deleted member 26859]

income? depends on ur income and credit score on how much banks can loan you, also what typa house you trying to buy? tbh this is the safest and steadiest way to make good income if you can manage because buying houses in this economy is fucking brutal even two income house can barely afford a shithole of a house

i can save like 20k per year. 20k should be enough for a deposit

why cant 2 income households afford a shitohle house?

 

[Deleted member 26859]

.

 

[comingtothisJFL]

i can save like 20k per year. 20k should be enough for a deposit

why cant 2 income households afford a shitohle house?

u dont just need deposit lmfao, you actually need to have the entire money to buy the house hence getting loans from bank then thereforth paying the mortgage which you owe the bank

 

[thereallegend]

income? depends on ur income and credit score on how much banks can loan you, also what typa house you trying to buy? tbh this is the safest and steadiest way to make good income if you can manage because buying houses in this economy is fucking brutal even two income house can barely afford a shithole of a house

We’re heading towards a future of multigenerational households

 

[Deleted member 26859]

u dont just need deposit lmfao, you actually need to have the entire money to buy the house hence getting loans from bank then thereforth paying the mortgage which you owe the bank

low iq subhuman

 

[comingtothisJFL]

low iq subhuman

u did like surface level research man and never really dived into actually the entire process of buying the house

 

[aspiringexcel]

How I will achieve financial freedom from real estate


I will buy a house for 5% deposit, about £20k. which i nearly have enough

live in it for a year(because if u buy and dont live in it, it classes as buy to rent and they want u to put down 20% deposit )

fix it up while i live in it/rent out a few rooms on the sly


rent it out for 1-1.5k per month after 1 year

mortgage repayments are about 750-1000,


So I'll use the tenants rent payment of 1-1.5k to pay down the mortgage repayments, and have 200-500 spare pure profit in my pocket per month


but that positve cash flow isnt the only profit u get in real estate. there is actually 6 wealth generation benefits when you do a buy-to-let

1. natural appreciation
houses on avg go up 3% per year in appreciation. you will get 3% of 300k (house worth) per year which is like 10k per year profit. but you only get that profit when you sell the house. but it still adds to ur net worth

2. tax benefits
"Main tax benefits of owning rental property include deducting operating and owner expenses, depreciation, capital gains tax deferral, and avoiding FICA tax"
you get to save money on taxes

3. positive cash flow
the 200-500£ positive cash flow I get from the rent money leftover after paying the mortgage repayments

4. equity
the tenant is giving me the rent money and im paying the mortgage with it, so they're paying off the house for me, and every month i gain more equity in the house. after like 1 year ill have 12k or so equity in the house. 12k added to my networth which can be cashed out when i decide to sell the house

5. buying a deal
searching around for a while to find a good deal and buying below market price, thats immediate profit already

6. forced appreciation
causing the house to be worth more, by force. for example doing work on it. adding another bedroom or bathroom, cosmetics on it etc


after the first house, i will buy 1 more every year and hopefully it will snowball

Mirin landlord skills

 

[comingtothisJFL]

We’re heading towards a future of multigenerational households

bro looking at the prices of these houses even two income is looking impossible in the future, idk how next generation gonna cope

 

[Deleted member 26859]

u did like surface level research man and never really dived into actually the entire process of buying the house

you are really low iq and may have autism

 

[comingtothisJFL]

you are really low iq and may have autism

am trying to actually have a discussion on the procedure of buying a house and you abruptly bring iq and autism?? yea sure dude am the one with autism and have complex over my iq which by ur financial situation and money making threads i can guess is very high

 

[thereallegend]

bro looking at the prices of these houses even two income is looking impossible in the future, idk how next generation gonna cope

young people will be renting rooms in houses or staying with their parents even after they have children

 

[Deleted member 26859]

am trying to actually have a discussion on the procedure of buying a house and you abruptly bring iq and autism?? yea sure dude am the one with autism and have complex over my iq which by ur financial situation and money making threads i can guess is very high

i'll rent it out to someone so ill use their rent money to cover the mortgage repayments so i dont need the rest of the entire money for the house u retard, just the deposit

 

[Chinacurry]

So you're buying a 400k house, which will be a decent house outside London or some parts of manc or brum.

Bit if you're putting down 5%, with rates priced as they are, you're not going to get rent high enough to cover mortgage.

Real estate is legit steady way to build wealth for when you're older, but it's priced to be cash flow neutral, at least in developing countries. If u wanna be cash flow positive you put your 20k into a 120k property and spend 20k fixing it up, that will be cash flow positive, at least after a year or 2, and higher appreciation

 

[Deleted member 26859]

but it's priced to be cash flow neutral

the avg one is. thats why u have to spend weeks searching to find a good deal which is positive