Generate Cash Flow from Property Rental

With the drastic hike of property prices for the past 8 years with the economy recession over the past 1 year, most of property investors facing great challenges on generating positive cash flow from their existing residential property. For rental supporter like me, I think most of our objective is the same and simple, we just want to fully cover our monthly mortgage using our rental income. But how?

I noticed there's a guru discussed about this topic in Facebook, and I thought of discuss about this topic today. I have some thoughts about it last night, perhaps I'm not an innovative person, I have not much ideas about it. Nonetheless, below are the 5 common ideas that I noticed they are in practice nowadays.

1) Homestay
Convert your residential unit into homestay and promote it under homestay app i.e. Airbnb, instead of monthly rental. This can generate huge positive cash flow compared to monthly rental income. It's tax free some more! However, this is suitable only for tourist hotspot, CBD or city center.

2) Turn into Many Rooms
If your residential unit is located at CBD or city center, perhaps you can partition your unit into as many rooms as possible, and rent it per room basis. This also can then turn to homestay if you want to. If it's condo, you may need to check with the building management if you are allow to do so.

3) Dual Keys Condo Unit
If your unit is dual keys unit, you are able to split the unit into 2 tenants or more. Hence, generate more rental income for your unit.

4) Target Niche Tenant
Some affordable tenants favor certain interior design, setup, lifestyle and property type. Target them and then renovate towards what they are looking for. Of course the risk is higher, but potential return is there.

5) Leverage on Agent
Look for a outstanding agent, get their advice and pay extraordinary commission to them to get what you want. Perhaps this is the better way if 1-4 are no suit for you.

There should be more creative and innovative ideas out there. All the best, property investors!

Hyundai or Toyota?

Last few days ago, I saw a local e-newspaper article reporting about the Chinese citizens trying to smash a KOREAN car due to the built of missile shield in South Korea from Korea and USA.

But if you pay attention to the car model in the photo, is it a Toyota or Hyundai?

Truth of Life?

Found an interesting picture from Facebook last week would like to share with you here. Look at the picture below, do you have any feeling about it?

I believe different age will have different feeling. For those in the mid age of 30 to 40, they might realize it is true. Imagine economy has been in a bad shape for 2 years, high inflation and currency depreciation, we are not sure when it will going to be recovered. We have to work extraordinary hard to exchange for more money. These money may be just barely keep us survive, take care of our self and family. If it is excess, we will make use of it for health protection, savings and investment for our retirement or children educations.

And in the end, we are just like the old man in the picture, chasing all the way till we are old enough. We then got the wealth, but we forgotten to enjoy and do more important things around us when we are capable to do so.

It reminds me the top billionaires in ASEAN countries, where they are also fighting extraordinary hard to keep or expand their business empires. When they are old, they cannot bring the wealth away, but to pass to their children, if no then successor.

Even the picture is just a joke, but it does indicate a lesson to us. No doubt, money is vital but it just part of our life. More importantly, we should do what we like. Time is gold, we should enjoy ourselves while making money. How I wish I can return to 15 years ago and choose the profession I like!