What Type of Real Estate Brings In Money?
Many songs, terms and situations revolve around money; either about how to get it or how to spend it.
Since we live in a capitalist society, money will always be a relevant topic of discussion so I will discuss the pros of investing some of your money in real estate. You have many definitions of a financial asset but the best one I ever heard was created by Robert Kiyosaki; an asset put money in your pocket.
This description can be shared and understood by children as well as adults without degrees in finance or economics. When people purchase a home and call it an asset, often times that's a falsehood. If you have a property with a mortgage that supplies no income then that is a bill. Merely owning something that costs a lot of money does not an asset make; if that were so, all the luxury car notes being paid for personal use would be assets.
I don't know anyone who filed bankruptcy due to too much income coming in; its typically because their bills exceeded their earnings. That said, what type of real estate brings in money? We all know rental properties are the way to go; whether its a multiple family unit, a building or a single property(co-op/condo) that is rented out, when you earn more from that property than what you pay in mortgage then you have an asset on your hands. Real estate in NY now is someplace smart to put your money. Since 1980, the better part of 40 yrs, the NYC population increased from 7 million to over 8.5 million today; where do you think they are living?
As the trend goes, people are still coming so real estate is the way to go.
Since we live in a capitalist society, money will always be a relevant topic of discussion so I will discuss the pros of investing some of your money in real estate. You have many definitions of a financial asset but the best one I ever heard was created by Robert Kiyosaki; an asset put money in your pocket.
This description can be shared and understood by children as well as adults without degrees in finance or economics. When people purchase a home and call it an asset, often times that's a falsehood. If you have a property with a mortgage that supplies no income then that is a bill. Merely owning something that costs a lot of money does not an asset make; if that were so, all the luxury car notes being paid for personal use would be assets.
I don't know anyone who filed bankruptcy due to too much income coming in; its typically because their bills exceeded their earnings. That said, what type of real estate brings in money? We all know rental properties are the way to go; whether its a multiple family unit, a building or a single property(co-op/condo) that is rented out, when you earn more from that property than what you pay in mortgage then you have an asset on your hands. Real estate in NY now is someplace smart to put your money. Since 1980, the better part of 40 yrs, the NYC population increased from 7 million to over 8.5 million today; where do you think they are living?
As the trend goes, people are still coming so real estate is the way to go.
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