{"id":2071,"date":"2016-01-26T22:24:57","date_gmt":"2016-01-26T14:24:57","guid":{"rendered":"http:\/\/people.utm.my\/noorsidi\/?p=2071"},"modified":"2016-03-30T16:22:07","modified_gmt":"2016-03-30T08:22:07","slug":"common-mistakes-made-by-first-time-property-investors-7","status":"publish","type":"post","link":"https:\/\/people.utm.my\/noorsidi\/2016\/01\/26\/common-mistakes-made-by-first-time-property-investors-7\/","title":{"rendered":"POOR CASHFLOW MANAGEMENT"},"content":{"rendered":"<h4>7. POOR CASHFLOW MANAGEMENT<strong><br \/>\n<\/strong><\/h4>\n<p>It\u2019s easy to fall into the trap of poor cashflow management as a beginning investor.<\/p>\n<p>Understanding all of the costs involved in acquiring and holding property can be difficult and you should always seek the advice of a professional accountant who knows about real estate investment to ensure you know exactly what you\u2019re getting into financially.<\/p>\n<p>You also need to make sure that you can afford to hold onto any property you buy.<\/p>\n<p>In other words, how much income will your investment(s) generate and will it be enough to cover your outgoings?<\/p>\n<p>If not, can you manage any shortfall?<\/p>\n<p>Don\u2019t forget to account for any contingencies, such as extended vacancy periods or unexpected maintenance costs.<\/p>\n<p>A good rule of thumb is to allow about 10% of the property\u2019s value for costs such as rates, land taxes, insurance, maintenance and management fees.<\/p>\n<p>It\u2019s great to dream about the riches you can make from real estate, but it\u2019s critical to enter into property investment with your eyes wide open when it comes to all the out of pocket expenses you\u2019ll incur along the way.<\/p>\n<p>Examine each potential investment analytically and ensure you make adequate allowances.<\/p>\n<p>By underestimating your income and overestimating your expenses you\u2019re more likely to avoid any nasty surprises.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>7. POOR CASHFLOW MANAGEMENT It\u2019s easy to fall into the trap of poor cashflow management as a beginning investor. Understanding all of the costs involved in acquiring and holding property can be difficult and you should always seek the advice of a professional accountant who knows about real estate investment to ensure you know exactly &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/people.utm.my\/noorsidi\/2016\/01\/26\/common-mistakes-made-by-first-time-property-investors-7\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;POOR CASHFLOW MANAGEMENT&#8221;<\/span><\/a><\/p>\n","protected":false},"author":18926,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2071","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/posts\/2071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/users\/18926"}],"replies":[{"embeddable":true,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/comments?post=2071"}],"version-history":[{"count":0,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/posts\/2071\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/media?parent=2071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/categories?post=2071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/people.utm.my\/noorsidi\/wp-json\/wp\/v2\/tags?post=2071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}