How to make money by leverage principle? Under the current interest rate level, real estate is a better investment product, but the risk is not small. In the past three years, the annual rate of return of Shanghai real estate is not less than 15%. The yield of real estate is mainly composed of return on assets and return on rent.
The annual rental return rate in Shanghai is generally 5%. The sum of the two is 20%, which means that the annual yield of Shanghai real estate assets is 20%. But at present, the financing cost of bank loans is below 6%, because the mortgage interest rate is below 6%, so the spread can reach 15% by using the arbitrage between bank loans and market interest rates.
Borrowing money to invest-the lever principle of making money
When we do business or invest, we often talk about the rate of return, that is, how much money you earn every 100 yuan in this business or project every year. The money earned by general enterprise investment is related to the total capital investment, which is often a percentage of the total capital investment, whether borrowed or owned.
Investors have two ways to calculate the rate of return:
Return on total assets:
The house bought at 654.38+00,000 yuan has appreciated by 654.38+00,000 yuan in the first year, and the rental income is 50,000 yuan. Its yield is 15%.
Return on cash investment:
A house of 1 10,000 was bought back with 200,000 cash and 800,000 bank loans. In the first year, the value added was 65,438+million, and the rent was 50,000. Pay back the bank loan of 50 thousand. Although its return on total assets is still 15%. However, if the yield of cash investment of 200,000 yuan is calculated = 654.38+ million appreciation+50,000 rent-50,000 interest/200,000 cash investment =50%.
Borrowing money to invest enlarges one's limited capital with leverage principle, which not only makes one's own money work hard to make money for oneself, but also uses other people's money to make money for oneself. A friend of mine bought a house in Shanghai in 2000 for 6.5438+0 million. Three years later, the house appreciated to 2 million. The three-year return on investment of my friend1100,000 capital is 100% (excluding rental income).
Suppose my friend invests in another way. The same 654.38+00,000 yuan, buy three houses and borrow 2 million yuan. Three years later, after selling three houses, I got 6 million yuan, excluding 6,543,800,000 yuan of principal, 300,000 yuan of bank interest (calculated at 5% of bank interest), 2 million yuan of loans and 2.7 million yuan of profits. In this way, the return on investment of three years1100,000 yuan is 270/100 = 270%. It is 2.7 times that of investing without borrowing money.
Physicists who can use force invented pulleys, so that people can lift the same weight with half the previous strength; People who can borrow money to make money will be closer to wealth. Lenders claim to be rich.
In today's commercial society, whether you dare to borrow money to invest is a test of a person's knowledge, vision and courage. Although many people have good ideas, they dare not practice or take risks. So they can only have money and security. Opportunities and success are always reserved for those who dare to take risks and innovate.
In the west, the ability to borrow is a sign of a person's reputation and assets. The bank decides whether to give you a loan or how much to give you according to your mortgage assets and repayment ability. In the west, debt is divided into good debt and bad debt.
The so-called good debt means that you can make money through the leverage of borrowing money (after deducting the borrowing cost), so that the income of wealth growth is far greater than the borrowing cost, and it is far beyond the income obtained by relying solely on your own principal investment. To put it bluntly, it is to make money with other people's money. Bad debt refers to the purchase of assets that do not enjoy or generate income or whose income is less than the cost of borrowing, resulting in a decrease in cash flow and assets.
The principle of borrowing money for investment:
The return on investment must be greater than the cost of borrowing money.
The purpose of borrowing money is to use the leverage of money to enlarge one's capital capacity and obtain more profits. However, there is a cost in borrowing, so we must carefully analyze and calculate before deciding to borrow, and make sure that the income generated by investment must be greater than the cost of the loan, otherwise it will be bad lending.
Investment risks are under control.
Some investment projects are not very stable and risky. At this time, it is necessary to analyze and calculate how big the risk is, whether I can control it, whether I can control it once there are variables, and whether I can repay the loan once there are variables. For example, borrowing money, speculating in stocks and futures are risky, and they have no way to control the development of the situation. Western society generally does not advocate borrowing money to invest in stocks and futures.
What is an Australian proverb? You can only use money you don't usually need, and losing money won't affect your life and invest in stocks? Instead of speculating on your living expenses and buying a house. Buying a house is different. Real estate appreciation is stable. Even if there are some short-term price fluctuations, the house is still there. You live there by yourself and are not afraid of anything. Unlike stocks, stocks may fall to zero.
Have their own repayment ability
The most important principle of loan is that no matter how good the project is, you must be able to repay it. If you have no repayment ability, the capital chain will eventually break and your whole army will be wiped out. An Australian friend of mine once held a house of 16 through a loan in the first phase, and then the interest rose to 17% in the late 1980s, and the monthly repayment increased sharply, which was finally taken away by the bank.
How much should I borrow? Some loans can repay the principal plus interest, and some loans only need to pay interest. Make sure you can pay back the money. In the west, the standard for banks to examine your loan eligibility is: repayment is generally not higher than 1/3 of your income. Whether you buy a house or a car with a loan, you must meet the condition that there is a balance after deducting the expenses every month. The loan term, loan ratio and balance need to be determined according to the actual situation of the family, and the reasonable loan ratio varies from person to person.
However, generally speaking, we need to pay attention to two indicators. First, the ratio of household assets to liabilities, that is, the ratio of household liabilities to household assets; The second is the ratio of monthly repayment, that is, the ratio of monthly repayment to family monthly income. The two indicators are safely below 50% and conservatively controlled at around 30%.
How can you get more money?
Bank-if the bank is willing to lend you money, this is the first choice. Low interest rates are not ungrateful. Generally, banks will not repay in advance unless you ask for it yourself.
Private lending channels are nothing more than borrowing money from relatives and friends, bidding, pawning, or looking for financing from underground banks.
To make money, you must first have good ideas. Secondly, we should use methods that have been proved to be effective. Borrowing money to make money is to borrow other people's money, plus your own knowledge, vision and courage to accelerate your financial freedom.
The primary stage of life is to work for money, but the advanced stage of life is to make money for you, especially to be good at making money for you with other people's money. In this way, your success is no longer limited to your limited capital.