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Investing in property
When is the perfect time to invest? What demographics should I look at? How much money do I need? Why should I invest in property? There will always be questions about property investing because it involves risk and uncertainties. And while these drawbacks are often pushed to the forepart of our mind, we often forget about the benefits that property investing can provide.
Property investing may not be for everyone, however, ruling yourself out of the property game without the proper knowledge can be disadvantageous. This book serves as an introduction to property investing and offers strategies for becoming a property investor.
The following four (4) points are the author’s perspective on reasons people should consider property investing.
1. The ‘Great Australian Dream’
Buying your own home features prominently in the ‘Great Australian Dream’. It is something that sits comfortably with most people and is a low risk investment that is relatively stable.
For author and speaker, Craig Turnbull, his reason for property investing stemmed from the financial struggles he experienced growing up. Noticing that many rich people either created or held their wealth in property, he realised he needed to invest in property in order to live the ‘Great Australian Dream’ - his dream!
2. Buy back your time
Most people reach a point when they realise that there has to be more to life than working long hours and long weeks. To make money you have to work for it, which is essentially selling your time. Time is a commodity that can’t be stretched or taken back, however, property investing offers an alternative.
This is Gary & Jenny Leather’s approach to property investing and one that lead them to establishing Jenger Investments. The dissatisfaction of the nine-to-five grind and two undervalued incomes prompted Gary and Jenny to explore the possibilities of using positive cash flow properties, which would allow them to buy back their time and find the freedom they were looking for.
3. To be uncomfortable
People need to be challenged. We need to learn, to grow and develop in order to improve ourselves. Property investing gives people the choice of moving out of their comfort zone and opening their eyes to other alternatives beyond their normal scope of living. No matter what field of work you are involved in, property investing can be undertaken by anyone who has a passion and willingness to learn the industry. It is never too late to invest in property.
One of the reasons property developer, Peter Comben started in property was that he found himself in a comfort zone in which he had grown accustomed to the security that a salary provided. So he took leave without pay to try something different. He is still in the industry today.
4. Passive is good
Property is one of the best assets you can own and will literally earn you money while you sleep. It is a passive income, which allows you to have money coming in whether you work or not.
Dymphna Boholt had just come out of divorce, had a baby to care for and another on the way when she started Active Financial Answers. When she decided she would rather enjoy a retirement lifestyle sooner rather than later, she understood that property investing was the ideal solution.
In Summary
Many uncertainties are associated with property investing and a lot of this hesitation has to do with a lack of knowledge. However, while property investing should not be entered into light-heartedly, do not overlook the benefits. According to investor, Patrick Bright, property investing is the best and safest way to create and hold onto wealth.