“Sell one, buy 2 properties” is a commonly used marketing tactic used by property agents these days.
So, is it really true? I signed up for some of the “free” e-books myself and did some research.
This is part of an investment strategy, where the couple will sell their current home and buy a private property each under one name.
Some of the risks associated with this strategy are:
- Poor rental market
- Underestimation of costs involved
- Unable to service the monthly housing instalments, which will lead to foreclosure
- Overestimation of future property value
This is an investment strategy, hence, you must be aware that there are risks involved.
While it is very tempting and exciting to know that you “can” buy 2 properties, you will need to approach this as rationally and as conservatively as possible.
Word of advice
You can borrow up to 60% of your monthly income.
If you are drawing a salary of $7,500 or above, you can get a loan amount of up to 1 million!
This will be one of the sales pitch that will be delivered to you.
I would recommend you to stick with the 5 Basic Checks and not to be swayed by the sweet talk.
It is important to have an investment plan or passive income. But one should not be putting all your eggs in one basket.
Get an agent who serves you, not sells to you. Feel free to contact me to discuss more.