If one of real estate bombers, that is, our readers, would like to reach a high level cash flow, we would understand him, because a large income always warms the heart. However, isn't it more important that it be stable? Disputes on this topic can be endless, so we will not join them. Instead, we suggest you familiarize yourself with a new term that reflects this very stability. Plus one interesting word for your real estate slang. You can not thank.
❝Cash cow is a term used to denote an object that brings its owner a stable, predictable and high profit with relatively low maintenance costs.❞
In general, this term is widely used in business analytics not only in the context of real estate, but also in relation to other products that please their owners with a high inflow of funds that significantly exceeds the initial investment and incidental costs.
Cash Cow depends on several factors:
- location Central areas, streets with a high flow of cars and pedestrians, walking distance to the main transport hubs - you and yourself you know, how important is location when buying real estate;
- tenants Their solvency and reliability directly affect your income;
- maintenance costs. We are talking about repair work, elimination of minor malfunctions, etc. A cosmetic repair or the purchase of new equipment may cost a lot, but in the long run they will allow you to earn more, because the price for quality is higher than for mediocrity.
Anyone can be a cash cow type of real estate- apartments, houses, commercial objects, resorts and hotels etc. Having one such cow in stock, you will be able to more confidently invest in less reliable, but interesting projects.
Example of use:
- It's yours rooms in Podil became a real magnet for young people. The tenants have done a good job on its reputation and design. I think you can be hailed as the owner of a cash cow.
- Ahaha, what are you saying? I have a coffee shop, not a farm. What other cow?
— But this is such a term for real estate that brings a stable and fairly high income, and does not particularly require investments.
Shall we choose a cow to your taste? We advise you to choose first one-room apartment in Kyiv. This segment is always in demand, so you will have no shortage of tenants.
