We all want to build a better life for ourselves, and for most of us that will mean we need to earn a bit more, or a lot more, money. But how do we do this and get the time to enjoy the extra money we earn?
There are lots of ways out there to try and earn more money, through a job, a business, investing in shares or trading, but for me property has to be the most secure and stable (in the long term) way to build assets and income.
I will be sharing with you in this blog why I think that is that case, and there are many reasons:
1. Property is a Real Asset
There are lots of different assets that you can invest in and make money for you. people typically will invest in shares, trade price movements in shares or foreign exchange, buy silver or gold, or more recently invest in crypto currencies.
But markets in these investments can be incredibly volatile. International monetary and trade decisions, government regulations, conflict or technology changes can wipe out markets and the businesses that supply those markets. Sometimes these changes can be lightning fast, wiping out your investment too.
Of course property markets fluctuate too, but certainly in the UK despite all of those fluctuations the value of property keeps going up and up. This is a trend that can be traced for many decades, if not further.
Ultimately I think the stability of property as an investment rests upon the fact that it is a very real, physical asset that despite all of the changes in the world around it, will keep on doing what it does best and providing a roof over someone’s head.
2. A Place to Live is a Basic Need for Everyone
Leading on from property being a physical asset, unlike some other investments, is that fact that people will always need a place to live and a roof over their heads. It is one of the basic human requirements for life.
Investments in other assets just does not have the same kind of long term guaranteed demand.
There many different kinds of properties – residential property, commercial property, land, industrial property, parking space, restaurants, hotels, leisure facilities etc. etc. There are also lots of different strategies that you can employ in investing in the different property classes.
This variety provides a huge amount of flexibility for you in deciding your overall goal from property (do you want regular income or to earn chunks of cash when you sell a property?) and choosing from the many different property strategies that can deliver on these overall goals.
This also means that you don’t have to be working full time in property to make money from property. Choose the right strategy and partners and you can leverage their skills and time to make the most from what you can provide.
4. Banks Will Buy Property for You !
If you want to buy a business, buy shares, trade on the foreign exchange market, buy gold or silver, just try going to the bank and asking whether you can borrow money to do that. Actually don’t bother, I can tell you what the answer will be – NO!
Buy tell the bank that you want to buy an investment property and they will be more than happy, in fact you will have all sorts of loan offers from them – variable rate offers, fixed rate offers, different fixed rate terms . . .
Now they won’t lend you all of the money to buy a property, not any more anyway, but they may lend you as much as 75-85% for an investment property, which means you only need to find 15-25% of the purchase price. That is a whole lot easier than finding 100% of the price
5. Property Keeps Paying You When You Stop Working
If you have a job, how long will that keep paying you when you stop working or if you can no longer work ? Not very long, if at all is probably the answer.
You might have a pension, but for most people their pension is unlikely to provide them with the life they want and deserve after 50 years of hard work.
For me, property is my pension. It is going to keep on paying me for as long as I want it to. True, it will pay me less when I am not involved in the day to day management of it, but if I set it up right I can have an agent manage it for me, for a fee, and still have enough income from the portfolio that I can have the retirement of my dreams. And, I don’t have to wait until I am 65 to take my retirement!
6. It is a Legacy I Can Pass On
Maybe the most important for me, is that I have children and I want them to understand the value of money but not have to struggle for it on an daily basis as many have to.
The properties that I buy are a financial legacy that I can pass on to my children when they are old enough, a legacy that can provide them with financial security for their lifetimes. That is a massive legacy to be able to pass on to them.
If that all sounds too good to be true, well don’t just believe me. Look at the seriously rich and you will find almost all of them have invested in property. For many of the rich, their businesses are a way to generate money that they can buy property with. This shows you the value they place in property – the end goal of successful business is to invest in it.
And the great thing is that anyone can use property to provide income and produce the lifestyle they want. You don’t need to have money, building skills, lots of time and great contacts in the industry. As long as you have at least one of these there will be a property strategy you can use too, but I will go into this in more details in later blogs.