Falling House Prices

Moreover, a significant falling house prices, with a stable macroeconomic situation in the near future is expected. Let us examine this sector more closely. One of the simplest and most common methods of accumulation, it mortgage. And interesting is the option mortgages secured, legalize an apartment, getting an apartment, renting it out and cover the monthly payments for the rent. In fact, the average urban rents are not sufficient to fully cover the monthly mortgage payments, although the amount of payment is influenced by many factors, such as the amount of down payment, loan term, etc. Of the negative aspects of this technology is note: 1) The need to pay tax on rental income.

2) The potential additional payment in excess of rental income, or making a large down payment. 3) Long-term nature of this method of accumulation (usually not less than 10 years). 4) The costs associated with obtaining credit, and extension of insurance to property and life. 5) The costs associated with finding decent tenants for the long term. Costs associated with the possible change of tenants Note: If you do decide to save on paying tax on rental income, remember that the tax inspection, revealing hidden landlord put in a list of their priorities. And even encourages neighbors to the denunciations.

Positive points: 1) The minimum risk of losing the asset (rent, on terms of credit, insured). 2) The income associated with the projected growth in property values. 3) Income that is associated with the increasing cost of rent board.