“For everyone who has will be given more, and he will have an abundance. Whoever does not have, even what he has will be taken from him.”
- Matthew 25: 29
Choosing the right property investment is the key to your passive income.
Property Investments by its very essence has to have continuous income, if it does not, it couldn’t be classified as investment.
In the same manner, an Income Generating Property Asset (IGPA) has to provide income continually if its to be called an
IGPA. Now, why is this important to know? Because anyone of us can easily fall into the thinking that all property
investment can and will provide income, when it actually won’t.
Income Generating Property Assets Are Great Buys If:
1. They provide substantial equity upfront, meaning you bought your IGPA between 20% to 30% below market value. This is what is called Appreciation and Equity.
2. One can use the OPM principle (Other People’s Money) and they can be bought with little or no down payment.
3. There is a positive cash flow or income generated by that property.
What Is the Difference Between an Asset and a Liability?
One should also understand the financial experts definition of an “Asset” and a “Liability” in order for one to assess what they have at the present moment. Simply put, an “Asset” puts money in our pockets, while a “Liability” takes money from our pockets.
If the house or property you now own is not giving you any income then what you have is a liability. A liability just meant that this house or property is the one getting money from your pocket. There is nothing terribly wrong with liabilities if its within manageable reach but the problem is when we don’t give a hoot about the extent of liabilities we get ourselves in. Liabilities are part of life, but If we can just manage and contain the limit of our liability to no more than 50% of our income, then we would be OK and would be on our way to the road of financial freedom.
Try and imagine what could happen when we discipline ourselves to control our liabilities, we would have more assets, won’t we? Assets that could transform to income and income that could buy us more assets, the skies the limit! Sadly, this will not be the case with many of us as we have already max out in the liability column.
What can we do? Break out from the viciuos cycle of getting yourself deeper and deeper into the liability pit and look out there and see the horizon for opportunities that would change your financial aptitude. Do it now and waste not one moment!
What if I told you that a simple P10,000 monthly amortization if coursed through a right IGPA will provide you
with a steady flow of income in just two
years? I am sure you’d be interested.