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Why Property Investing?

Three Good Reasons to Invest in Property

Plus others you may never have considered

Many future investors ask why property investing is better than any other type of investing. Here I will give you a brief rundown as to the advantages of property investing over other forms of investing.

I'm sure you have heard about all the beat up about using investiment property to create instant wealth. But the truth is that is just not true. Successfully investing in property needs a different mind set. The change in mindset required is a change from a trader mentality to that of an asset holder.

A Trader is always looking to buy something at a lower price than he can sell it for.

There are three very good reasons for you to invest in property and they are:

The Multiplier Effect: This is the best reason. Property always trends upwards. If you buy a real estate investment propertty today, in 7 to 10 years (or even shorter) it will double in value! Stick with me and I will show you how to hold it and aquire more to grow your wealth faster.
Ready Access to Cash: Yes this is true and one of the little realised secrets of the truly wealthy. They do NOT sell as soon as it goes up in value, rather they use the increased value to borrow more money.
Property is Great Security: This is the basis for the whole philosophy behind property investing. this is the reason why banks will lend so much against real estate investments as opposed to any other form of investment. It just is plain and simply is the best form of security, even in the light of recent market fluctuations. But more on that later.

These are the three best reasons as to why property investing is still a great investment and here are some more.

Property prices Trend Upwards.
There are records going back for many years that show every property has doubled every 7 to 10 years. To verify this for yourself, just go the local department of records and examine the prices of properties for the last 50 or 100 years. You will see that each seven years a properties value is almost exactly double that of 7 years ago.
Yes it's true there are exceptions to this. In some areas prices go up faster and in some areas prices will hardly seem to rise at all with time. but well located property, as I will help you to identify, will inevitably rise in value.
Peace of Mind Investing
The main reason why property investing is "Peace of mind investing" - you dont have to follow the markets and make daily, weekly or monthly adjustments.
Property Investing is Very Tax Effective
Another reason why property investing is so great are that the costs of owning a real estate investment can be deducted from your taxable income. (You will need to check your particular circumstances in your particular jurisdiction.)
Risk and Reward
The approach I advocate in these pages of taking a long term holding position with regard to your property portfolio
Multiplier Effect
A Comparison of Growth Potential
Liquidity
What if I need money quickly? This is a question often asked by people who are trying to come to grips with the idea of balancing several million dollars of growing equity against a diminishing debt.
The answer lies in managing your credit. That is every year or so as your property values increase have them revalued and arrainge for a corresponding increase in your lines of credit from your banks. for my wife and I this happens automatically each year or so as we purchase new properties.

Do some of these reasons surprise you?

On other pages I'll go through these in more detail so you can see the analysis and support behind them.

Return From Why Property Investing?
To Freedom Steps With Property Investing

Steps to Freedom

Sunday, October 11, 2009