Everyone has at some stage of their lives heard the saying “You can’t go wrong with property”. Some would have taken property investment tips like this and invested everything they had the very next day. Most of us probably smiled and thought nothing more of it. Here is a list of some property investment tips as to why property investment is the way to go.
1) To Build Wealth:
Property is seen as a proven way to build wealth. Millionaires have been made exclusively through property, and most successful investors will have a significant chunk of their portfolio in property. As long as a long-term view is used, even the most conservative investor can reap the rewards. There is a common saying out there that house prices double every 7/9/10 years (depending on what publication you read). Whilst this has been proven over certain time frames, it is important to remember that there have also been periods of time where prices have stagnated or even reduced. Over a long enough period of time prices will generally increase, hence the need for a long-term view when investing with property.
2) It’s Easy To Manage Yourself:
Whether it’s a Residential Investment Property, a Commercial Property or even a Shareholding in a large Syndicated Investment, it is something that everyone can get to grips with. Sure you will more than likely need an accountant to sort out your tax obligations and a solicitor to set your investment up in the best way possible, but that goes without saying. Once you get your head around the terms associated with your investment you won’t look back. There are a number of clubs, associations and forums for people in exactly the same boat as you where you can get property investment tips, and where information can be exchanged freely.
3) There’s Something For Everyone:
Whether you’re someone that likes to see exactly what you own and have total control or someone who likes the idea but can’t really be bothered with all the details, there is something for you in property. You can purchase a small rental and manage it in your spare time; you can purchase several properties and manage them as a full time occupation. You can even just hand the control over to a third party, let them take care of all the day-to-day requirements and you can watch your investment appreciate over the years. There is something to suit all personality types.
4) Tax Benefits:
Depending on what type of investment property you purchase and the structure in how you set it up, you may be eligible for a number of benefits. For example in New Zealand by holding your property in a special company you can negatively gear an investment property and then claim a tax rebate from the losses achieved in your company thorough your personal tax. You are able to claim back costs that you have incurred in the process of managing your rental such as accountants fees, travel costs, phone and office expenses. Whilst the benefits are an added bonus, I don’t know of any investors that got into property purely for the tax benefits that may be achieved. For a comprehensive summary on what you may be entitled to, a chat to your accountant and solicitor is recommended.
5) Retire Early And Enjoy Life:
By investing in property and building a successful portfolio the possibility of retiring early and enjoying your twilight years could become a reality. A smart and prudent investor could build a sizable portfolio from minimal investment. Having someone else paying off your mortgage or loan lets you:
a) Build wealth faster than you would have originally thought
b) Achieve financial goals and milestones a lot sooner
Once you have achieved your goals, you then have the option to reassess those goals and maybe continue to let it grow or else sell up and live out your days in comfort. You may be in a position to give your children a “kick start” on the property ladder and allow them to build a portfolio of their own.
There are many reasons to get yourself on the property ladder, be it for financial reasons or for the challenge of doing something you haven’t done before. There is a range of different property options with enough variety to suit most people.