property investments

Property Investment Makes Sound Financial Sense

Buying your first property, owning your first home and getting your first step on the property ladder, is exciting and a little daunting. It is also the first step on the ladder to financial security. Buy the next one and suddenly you are a go getter, an entrepreneur even an an investor. Invest in overseas property and you have really made it!

Look at the present situation. With the end of many final salary pension schemes and the ongoing poor performance of personal pensions there exists the very real certainty that many of us will simply not have enough money to live on in later life. The need to take responsibility for our future financial health has never been greater. There are many investment routes available, some good and some bad but one has consistently out performed all others over the last 40 years or so – Property!!!

Just think back to when you purchased you home or your parents purchased their home. How much did it cost? And how much is it worth today? It will have almost certainly increased in value and if it was purchased many years ago the increase will be very substantial. Now project this increase forward and you’ll see why property investment is such a good bet.

Property is a unique investment in many ways.

Safety and Security

Property investment offers the best means of building substantial long term wealth in a safe, stable and predictable manner.

Unlike the stock market it is almost impossible to lose 100% of a properties value whereas it is relatively easy to lose 100% of a shares value.

In the long term property prices have only ever gone in one direction – Up!!! Investing in property is a long term wealth building strategy and as such short term fluctuations in property prices are irrelevant and have little effect on the investments ability to generate strong returns over time.

Because of this property is considered a forgiving investment thereby offering great investment security.

Control

Property is a tangible asset which you own and control.

Because of this you can affect its ability to perform though through simple measures such as decorating, or adding space. By furnishing the property it is possible to not only increase the rental income but also determine the kind of tenant that you will attract. Alternatively, by buying property in an area of infrastructure development you can often benefit from greater than average capital growth. Many foreign properties can benefit from this.

With the stock market for instance, you have no control over what can happen to your investment. You cannot directly influence decisions made on a company’s direction and as such the performance of your investment is very much under someone else’s control.

Leverage

An investor can generate a high return on the capital invested through borrowed money – also known as gearing or leverage.

It is easy to borrow most of a properties value therefore very small sums of personal investment are required to build a property portfolio. Because of this the return on capital through property investment can be greatly higher that through other investment routes.

Income and capital growth

One of the greatest aspects of property investment is that it can generate not just long term growth but also a short term income stream through rental income. There are many people who live on the rental income of their property portfolio and can still be safe in the knowledge that their investment will most probably significantly increase on value over the years.

Other benefits

Property investment can bring many other benefits. For instance, when you invest in overseas property, in many countries you can benefit from reduced taxation in areas such as rental income and capital gains. In certain cases it is possible to eliminate  taxation all together.

In many overseas resorts you can also enjoy several weeks personal use each year. Just imagine if you owned a property in several foreign locations.

So now you know why property is the best investment vehicle there is you can see why so many investors turn to me to help them build a strong property portfolio through the purchase of discounted property. Check out the rest of my website to find out how we can help you to achieve your goals.