Investing In Property

There are many places to invest your surplus cash, and many options available for building your wealth. Investing in Property or Real Estate has created many more millionaires, and in faster record time than any other category of investment. That is why I consider Property investing one of ‘The Three Pillars Of Wealth’.

Property is popular, and a powerful wealth building tool for a number of reasons. Firstly, we all have to live somewhere whether as a tenant or a homeowner. Secondly, there is always a finite amount of land in any given area. Once the land is sold, it can only rise in value. Thirdly, property investing offers greater opportunities for leveraging your money, as opposed to other asset classes.

Leverage is the ability to increase your returns by using credit or borrowed funds to improve your speculative capacity from an investment. The principle of leverage is an excellent one for investors, whether an individual, a company or the government.

When you buy a property, you usually put down a deposit of around 5% to 25% of the purchase price. The bank or mortgage lender lends you the rest of the money to facilitate the purchase.

In essence, you get to control a large asset, which is mostly financed by someone else’s money. And when you take into consideration the fact that on average properties double in value every seven years, you can understand how your twenty percent can quickly multiply exponentially in your favour. This is an excellent way of having your money work for you.

Like any investment, there are many ways to invest in property.

If you look hard enough, you are sure to find a method that suits your personal needs and goals. You may choose to go for a hands-on approach or a hands-off approach, or a mixture of both. This will very much depend on the time you have available. However, once you are convinced of the merits of investing in Property you will most likely make the time now to ensure your future gains.

There is a lot of information out there about investing in Property, ranging from books, home-study courses, seminars and free workshops. It very much depends on how confident you are about applying what you’ve learnt. Personally, what really helped me break the inertia was a one-to-one mentoring, which took me through the whole process from A to Z. But I know others who have only read a couple of books and gone on to create portfolios beyond their wildest dreams.

What is most important is putting into practice what you learn and taking yourself through the whole process over and over again until you can almost buy properties in your sleep. When you start to get the hang of picking out properties like ordinary shopping, it can get very, very exciting. As Mae West said, “Too much of a good thing can be wonderful”.

Consider investing in Property for the long term. Although, there’s no law against liquidating some of your Property portfolio, you might want to take counsel from Warren Buffet when he says (in relation to stocks, though):

“Our favourite holding period is forever.”

Comments

[Investment Property]

Yeah, I have read this article and real estate market is expecting a fabulous growth and investment property is proving to be one of the most popular ways of investment.

[Debt Consolidation]

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