Real estate advice: Cashflow is king, not cash

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REAL ESTATE

Our real estate expert Yannick Callens suggests you keep your money on the move.
We have always been taught that it is important to have cash, be cautious with it and save money. However, the distinction to make is to have enough reserves in case of glitches, in case of emergencies. But saving to save and leaving it in a good family account is no longer relevant, especially in 2019, and it has been this way for several years now.

Instead of favouring cash, you have to think about cashflow, making money that sleeps with energy, money moving in the right direction and reaching a constant and desired cruising speed. This is called ‘passive income’. And it’s closer to you than you think.

One of the safest ways is real estate. You take money that does not earn much from your accounts, you put it into a good real estate investment. The money stays in your heritage in another form, you give it the desired speed by ‘leverage’.

“Nothing is lost, nothing is created: everything is transformed” is a well-known quote from Antoine Laurent Lavoisier. This phrase has never been as current as today in a world where we have to reinvent ourselves every day. And, of course, it applies to our finances and the obligation to adapt to grow.

For example, you want to buy a one-bedroom apartment for €150,0000. You ask for a loan from the bank for this example of 80%, this is a leverage effect of €120,000 for your purchase that you can of course then rent out. And I’m not talking to you about the effect it will have on the day of your pension.

We all want to be free and happy. We all ask ourselves the same questions: How to get there? How to do it? Why him and not me?

If you have a family and/or wish not to take (too much) increased risk, such as the stock market where your capital is not guaranteed, or its results, I suggest that you invest in brick and mortar – that’s real-estate investing.

    1. Dormant money in cashflow is under your control.
    2. You can leverage the purchase of your property.
    3. You can rent your property.
    4. You can benefit from passive income and feel freer and happier.

In addition, there is no law that prohibits you from doing this several times, to the best of your ability.

Multiply what works
Did you know that 90% of millionaires have become so by… real estate! Interesting, is it not?

I hear more and more that in 2019 it is no longer necessary to become an owner. I do not agree with that. Saving is worthless with lower rates of return, a smaller pension and a world that changes very quickly.

We hear more and more that physical money, notes and coins, will disappear. It’s a desired choice. And what will remain visible and tangible? Real estate, of course! And we will always need a roof over our heads, a place to sleep, to live, to be free to do what we want to do and to be happy.

Cashflow is a matter of time, speed and money. Real estate is a matter of cashflow and leverage.
It’s time for you to build your destiny… by putting your cashflow into real estate.

Photo: Rebexho