Are You Afraid of Investing in Property? Here's Why You Shouldn't Be!Mar 14, 2022
So you're thinking about investing in property but you're not sure if it's the right thing for you? You're not alone! A lot of people are hesitant to invest in property, mainly because they think it's a risky venture. However, this isn't always the case. In fact, there are several reasons why investing in property can be a smart decision for you and your portfolio. In this video, we will discuss some of the benefits of property investment and why you shouldn't be afraid to get started! I've got 6 reasons why you shouldn't be scared about investing in property;
1. Investing in property is a good way to diversify your portfolio.
By investing in multiple asset classes, you can reduce your overall risk and increase your chances of achieving your financial goals.
And remember, property prices have increased by an average of 10% in 2021! If you're thinking about investing in property and holding then don't wait, they say buy property and wait, don't wait to buy property, now is your time to do it. Not only will you earn money just by letting it sit there, but over time, property prices usually double every ten years. That's a pretty good return on investment.
2. Property prices are generally more stable than stocks or bonds
If a stock market crashes, your property investment is still likely to be worth something. In fact, during financial crises, some people took their investments out of funds and put them into property! This is because property is seen as a more stable investment than stocks or bonds. Property investing is a great way to grow your money, and it's a much safer option than investing in the stock market. Here's why:
- Property is seen as a more stable investment than stocks or bonds, which means that it's less likely to crash during a financial crisis.
- Investing in property can give you a good return on your investment, especially if you buy in a desirable location.
- Property is a tangible asset, which means you can see and touch it. This makes it easier to sell if you need to cash in your investment.
3. You can leverage other peoples money with mortgages and borrowed funds to grow a large portfolio, it's not get rich quick, its get rich slow.
When you invest in property, you can use other people's money to help grow your portfolio. So you don't have to invest all your funds into one property, you can spread the risk across multiple properties. This is done by taking out a mortgage or borrowing funds from a lender. This can help you buy more properties and increase your overall return on investment. However, it's important to remember that property investment isn't a "get rich quick" scheme - it's a slow and steady way to build wealth over time.
4. You don't need to buy property to control it and make cashflow
You can use lease options to control property and rent it out to your tenants. There is a lease agreement and an option, the right to buy the property in the future. If you don't want to buy the property, you can simply walk away at the end of the lease period. This strategy is often used by investors who want to control a property without actually owning it.
5. People are often scared of tenants,
They think that it's a lot of work to have tenants, but with the right property manager it can be a breeze. All you have to do is find a good one, and they will take care of everything for you.
Or you can self manage but with the right knowledge it can be a breeze. All you have to do is find a good tenant, never ever take on anyone who you are unsure about, your gut reaction is off, you think there are some problems or any little niggle. It can be better to have an empty property whilst you wait for the right tenant to come along, never become a motivated landlord and your life will be easier.
6. Scared of buying the wrong property.
Work with a mentor, someone who has been there and done it before. They can help you find the right property, negotiate the purchase price, and even help you with the renovations.
What's stopping you from making your dream home a reality? The right property is out there. You just need to know where and how to look for it! Work with an expert, someone who has done this before - they can find what suits YOU best and making sure you've done your due diligence.
Getting your FIRST right property is very important, and sometimes you can over analyse and miss the best opportunities.
If you're still feeling unsure about investing in property, that's okay! You can always start small and gradually increase your portfolio over time. There's no rush - take your time and make sure you're comfortable with each decision you make. Remember, there are a lot of resources available to help you along the way. And if you ever have any questions, don't hesitate to reach out to us. We're here to help!
What are your thoughts on investing in property? Have you been thinking about it but haven't taken the plunge yet? Or maybe you've already started building your portfolio? Let us know in the comments below!
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