Read Part 1 here. In the previous post, I mentioned about the 2 main factors that one should consider with monthly cash flow with an investment property. The first was Loan Tenure, followed by Rental Rates/Yield. The idea is to stretch your tenure to its maximum length that you can minimize your cash outflow. A big bulk of cash outflow is determined by the loan tenure and how huge your actual loan quantum is. Here are some other factors that the typical property investor must consider before investing in real estate in terms of cash outflow. I may not be able to cover absolutely all costs, but will try to be as comprehensive as I can, especially the more obvious ones.

• Price Quantum

As an investor, keeping the price quantum as low as possible is important. There are a few reasons why.

1. Buyer’s Stamp Duty – which is affected by your purchase price in terms of %.

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