Property investing has been around for hundreds of years, but not really until the 20th and 21st century have the general public actually physically decided that yes property investing is a big part of my investment portfolio that I can see returns on rather than just the share market.
Here are two reasons why property is a great investment option:
Today more and more people are using property investing as a tool to increase both their short and long term wealth. Even people in their 20’s are starting early as they have seen from past history that property investing is the key to increasing their wealth. The key point here is starting early and holding for the long term, not just into their 30’s but into their 50’s, that’s 30 plus years of capital growth if they purchased in the right areas etc.
One thing I want to point out here is that far too many people think property investing is a quick and easy way to get rich. This is far from the truth. Yes you can get rich, but buying a property and expect to quit your job will not make you rich. So if you think about property investing for the long term and that if I buy say 1 property every one or two years and I work hard at my job/business that I really enjoy, to make sure I keep my cash flow coming in, my chances of retiring early are greatly increased.
You might say well in Auckland homes have increased 20% + over the last few years so now I’m a millionaire, so actually I’m a property million. Incorrect. If you read or have read the Rich Dad Poor Dad book by Robert Kiyosaki, your home is not an asset but a liability. Your home does not pay you money it takes money from your pocket.
The step up from owning your own home is also discovering how to profit by getting into property investing. Most people know that property investing is a great tool to wealth creation and just by learning a few simple techniques and strategies they can purchase their first investment property. There are deals around all the time no matter what cycle the market is in and exciting property deals will always exist.
The biggest benefit that you have from property investing is that you will be able to be financially independent at some point during your journey. You will be able to quit your job and live off your property income and decide whatever you wish to do with your time.
If you have just started to get into property investing, thinking about getting into it or have been property investing for many years you need to make sure you have clear goals in what and why you want to achieve (review our other blog “Why Our Values are so Important to Us”). WHY is it that you want to get into property investing:
These are just a few examples of why people get into property investing and there are many more, just make sure that it’s your dream not someone else’s dream.Okay so are you convinced property investing is for you or are you still on the white picket fence about to fall on to the side of just buying shares and let someone else do the investing for you. Okay let me convince you more why property investing is a good idea.
Here are just 5 points why property investing should be on you’re to do list:
I hope this has helped you understand the benefits of property investing. Obviously there is more to it than above and I highly recommend you get a mentor or login to our site for more help. Property investing is risky like any investment but if you manage for risk as well as reward you will be on your way to hold a fantastic property portfolio.