There are many options when investing. The most widespread among the middle class (the most affected by the housing bubble) is to buy a property and sell it soon after for a higher price. This possibility offers the advantage of obtaining a relatively fast income, which must be worked equally, because to sell a property for a higher price needs to be reformed and fix the flaws that always have the second hand properties.
This investment system has too many weak points to ensure a high flow of long-term profits, on the one hand, the profits obtained from the sale of real estate are highly aggravated by the State, while on the other, and fluctuations in Market can play against when it comes to monetizing a property and obtaining the estimated benefit of the investment.
The other type of investment that handle entrepreneurs and people who are committed to this business as an effective system for passive income is based primarily on buying to rent, thus a continuous flow of cash generating passive income to pay will get the Debts and get a clean profit margin.
Among the most outstanding advantages of this modality is that the purchase of properties has tax advantages that are exacerbated by the tax declaration. In addition, banks are much more predisposed to lending mortgages and real estate purchases than to other non-real estate businesses.
Categories: Blog