First of all， a quick introduction. I’m a 27 year old psych nurse/teacher/poker-pro/construction worker from Holland who’s recently moved to Macau ( China ) to be with my Chinese girlfriend.
I’m a versatile guy, I love to learn new skills and right now I’m unemployed.
The real estate market in China is exploding, as I’m sure you all know, and Macau is no different. I’m reading up on real estate books and checking out this forum and I’ve began formulating a strategy to get me started up here.
I would love to get some feedback. I’m sure there are some holes and oversights in my plan ( or maybe big errors )
Right now we only have 7.000 euro, but also a payed of house that’s worth around a 100.000 euro. My girlfriend makes 900 euro per month, and right now we’re not spending 500 of that per month, so that’s money that’s available to pay a loan/mortgage. Soon I will be earning again, and that amount should increase to a 1000 euro or so.
I’m going to look for a house that is sold at 70% market value and needs serious rehabbing. I can do quite a bit myself and hire cheap labor from my girlfriends village. As soon as it’s finished I’ll sell it for a decent profit.
I’m looking for a property that costs me around 100.000 to acquire ( and should really be worth 133k then, right ? ).
First I’m going to take out a loan of on the old house ( is that called a loan or a mortgage ? ) to pay the 10% down on the new house, and to have the funds to do the rehabbing. And also I’ll have a bit more of a safety net in case things go wrong.
Then we’ll get a mortgage to buy the new place.
I havn’t run all the numbers yet ( like, how much is the mortgage going to cost per month exactly, how much cash should I keep in reserve, and how much will the rehabbing cost exactly ) but this seems like a pretty good way to go.
After trying this out and seeing if I like it, my aim is to control as many properties I can while keeping the risk under control by keeping enough cash in reserves. Properties are appreciating around 25% per year here, so it seems like it’s hard to go wrong.
To finish : a very basic mortgage question that I’m a bit embarrassed to ask : Is the following possible :
I buy a house that costs me 700 euro per month to pay off. I rent it out and get 100 euro cashflow from it. I then buy a house that costs 800 per month to pay of, and get another 100 euro from that. then I get a house that costs 900 per month, etc etc.
Do banks allow paying of mortgages like that ?
( hmm that sounds to good to be true eh )
Looking forward to hearing from you all !
Greetings from Macau, Joerii