Why do so many people invest, yet so many don’t?
Because we’ve been taught from a young age to buy a home and spend 40 years paying it off when the top 1% know that investing in property and using that asset to generate more income and financially free yourself and your loved ones.
But why is investing in property a good idea?
Here are 6 reasons why investing in property is a good idea:
1 – Leverage
It’s the golden goose of investing because with leverage you can take your $50,000 and turn it into $500.000 by going to your bank and asking for a loan. Look at other investments, next to no banks will loan you this much to invest in stocks or crypto, etc, but with property, your money can go a long way, and also over time your property will most likely increase rather than decrease so now you’ve increased the value of your initial $50,000 by even more.
2 –Property Value Growth
You’ve noticed over the last 18 months that the value of the residential property market has increased at an incredible rate and though this will eventually slow, it will continue to increase over time. Like it always has.
3 – Income
Whether you want to focus on capital growth or rental yield, know you’re going to be making some money.
4 – Necessity
The demand for homes is going up. With the majority of the Australian population living in Sydney & Melbourne, these cities will always be hot. But we’ve also been seeing migration to Queensland, Adelaide, Hobart, etc so there’s an opportunity to invest all over the country as immigration increases.
5 – Retirement Plan
When you invest in property, you invest in your future and retirement because the right property will give you income well into and even after retirement bringing in yields and profits from sales and rental.
6 – An asset
When you purchase a home to live in, it’s a liability because it costs you money, but when you buy an investment property and rent it out, it’s an investment because it generates income for you.
Once you understand this, you’ll begin to question your financial situation and ask yourself, is your money working for you or are you working for your money?