Considering in Residential Real Estate? 🏡

Here's 2 ways you can make money from Residential Real Estate 💰

Presented by Jacob Carlile.

There are 2 ways you can make money in Residential Real Estate. The first one is Capital Growth which refers to the value of the underlying asset increasing over time, while the second one is Income through Rent Return.

For example, if you have a residential property worth $450,000 and after 5 years, the value becomes $500,000 then you profited $50,000 in 5 years period of time. The $50,000 profit is your Capital Growth. However, if you rented out your $450,000 residential property to tenants for $380-$420 weekly, then your weekly profit becomes a cash flow or income which you received through Rent Return.

You must also take note that Capital Growth can be determined by a couple of things such as infrastructure in the area, the quality of the suburb, and the demographic of the suburb. You have to identify the infrastructure available in the suburb such as schools, public transportation, shopping malls as well as identify the types of people living in the area as these things contribute to the turnover of buying or selling properties that dictates your capital growth rate. Therefore, invest your money and property wisely!