Trump does it. So does Warren Buffet. Even Jim Bob Duggar (head of the famous Duggar family) does it. What is “it” you might ask? Property investing, of course! Investing in property is one of the best (and most well-proven) ways to create incredible wealth.
Being money smart is critical to building wealth. As the examples above illustrate, many successful people have used property as a tool to build their wealth faster than nearly any other investment!
The common thread among our successful clients is that they took action when they finally realized that simply working a 9 to 5 job would not help them save or accumulate wealth and the subsequent financial freedom they were searching for!
When you tap into the power of real estate investing you open up a world of opportunities for your future. “Sounds great,” you say, “but I’m treading water right now so how in the world could I possibly invest in property?”
If you think it’s not possible, think again! You might be surprised at the large number of our clients who came to us with zero superannuation and were scared – concerned about their future.
Some of these individuals had no savings and no budget – others have had no hope and no idea about how to invest in property, but each of them had a common goal – to become financially free, build wealth and get off the treadmill!
When using a map to determine where you want to go, you have to start out with where you are right now. As financial guru Peter Switzer told Yahoo Finance, “The first step [to creating wealth] is to look at what’s holding you back from seeing your money grow. The answer to this perplexing question is quite simple – it’s you! So, the starting point is that you have to start leading yourself to make changes. Without changing yourself, nothing significant happens.”
You don’t have to make this journey alone. Becoming financially stable and building wealth requires guidance and structure – a set plan. Our mentors can help you start using the income you have right now to grow your wealth – making it work harder and faster for you.
You may see some capital growth from the purchase of only one property, however to accrue substantial assets you will need to duplicate the process. Our mentoring coaches can show you how to replace your income within 2 to 5 years and accumulate as many as 10 properties in 10 years or more if that’s what you want.
Why Invest in Real Estate?
Real estate has advantages that other forms of investing do not have:
Leverage:
Leverage in real estate means the ability to improve your borrowing position, increasing the rate of return on your investment. Real estate has always been leveraged at a higher level offering lends of 80, 90 and even 100% whereas lends for shares are much lower – up to only about 70%.
Character:
Real estate, unlike shares, is tangible. You can visit your investment – see it, touch it. It will always have some value. As long as there are people near your property, your investment will be in demand.
Irreplaceable:
There is a finite amount of land, especially property which is close to conveniences, amenities, employment and transport. These are features that investors look for when they are evaluating the profitability of a particular piece of property or area to invest in.
Inflation:
Leverage and inflation work hand in hand. If your property does not appreciate in value, neither does your ability to leverage that property. In some instances, you could end up owing more than what your property is valued at, however this undesirable situation can be avoided fairly easily when you understand how to choose the right property and/or investment strategy.
Don’t Shares Offer Better Returns?
It may seem that buying shares is better than owning real property, and in fact a lot of shares will show a higher return, and offer an appeal in that they can be easily traded, and are almost as liquid as cash, however shares don’t have leverage and it’s leverage that is key to increasing your wealth.
Take a look at the following examples:
As you can see, using leverage to buy real property provided a better return in this scenario than buying shares. Equity in the first example rose from $30,000 to $57,000 – nearly twice the original equity, whereas in the shares example the return only grew by $9,000 – a return of about 30%.
This is a substantial difference between the two, especially when considering that the capital growth rate is higher for the shares in this example. This is due to the leveraging capacity of real property.
Hundreds of our clients have made incredible profits, becoming wealthy through property investing by understanding not only the effects of inflation on real property values, but by learning and using the same wealth building strategies that we ourselves use. Many of our clients are multi-millionaires who have been featured in reputable property magazines across the country.
Will you become a multi-millionaire overnight if you follow our guidelines? Not likely, but with the right strategies, patience and time you will achieve what many only dream of…while you’re still young enough to enjoy it!
To learn the other strategies and techniques come to our next complimentary Property Investor Night and find out:
- How to find and create profitable deals,
- How to know which markets to invest in,
- How to keep investing through interest rate rises,
- How to minimise your risk as an investor,
- How the property cycle works and how you can make the most of each stage
- What is positive cashflow and where to find these elusive properties
- How to use your equity to invest and not endanger your home
- And so much more
All states have our hand-picked Investment Coaches who are incredible investors and know the markets inside out.
