Can you sleep well knowing your income property earn more than what you owe?

Can you sleep well knowing your income property is earning more than your loan ?

Investing Property Is a very hot and popular due to property is having the potential of gaining capital appreciation while earning the income rental. In a way, it is more popular than putting your money in Fixed deposit as although fixed deposit do provide you a fixed interest, the actual truth is that your money value maybe going lower as years goes by. However, without having the correct method, you may stuck with many years financial difficulty tie with the property.

One of the two interesting tricks that seem to appeal me is that:
In order to know whether you are able to know whether you are able to earn more and in healthy ratio is by taking the total rental income per annum minus the total loan to pay per annum. Expert suggest that it is good if it is more than 4% and you still can have a good sleep if it is over 2% ratio.

In order to survive the unforeseen tenant suddenly decide to vacant your property, do make that your 10 month total rental income are able to pay for your total 12 month loan.

This two point is sure a noteworthy point that maybe useful in future . J