Hi all,
How are you? last time I posted about 4% to the financial freedom and a lot of people replied to the stories , asking for more strategies. So this time I would like to share with you the house I own in Japan.
!
They look super nice, isn't it?
BUT EVERYONE CAN DO IT TOO
This is a studio flat which worth about 100k when I bought it, the key is to use your financial leverage.
What is financial leverage
In the current low interest environment, bank is very happy to borrow you a lot of money with extremely low interest rate. The idea is to borrow the money with low interest rate and then use that money to buy an asset that generate high cash flow.
I basically remortgage my property and borrow 100k from my bank at interest rate of about 2% for 30 years
This means about 370 USD per month that you need to pay back to the bank and the idea is to find something that generate more than 370 dollars per month, so that you can pay the mortgage together that you can save extra money.
The studio I bought in Japan Shinjuku, generate about 6% net per year which is around 500 dollar.
To sum up, I borrow 100K from bank, I pay back them 370 per month and get back rent 500 per month
So basically I pay nothing and earn 130 positive cash flow every month!!
Is it that Easy
If you want to know more about how to reach financial freedom, Follow me on Steemit!!!