why do i invest in property

Every year I grab myself the Sunday Times Rich List, I have been doing this for years. I find it very interesting reading about different business in different industries. Also the range of business owners from different backgrounds of all ages.

Several years ago I saw a pattern with most of these individuals who had secured themselves a seat on the Sunday Times Rich List.

They all seemed to be in property in some shape or form. I began to realise individuals were using property as a vehicle to grow their wealth.

 If property wasn’t their main income stream, which for many it’s not. They would know how powerful the compound effect is with property prices and the power of passive income.

This is why many individuals who have successful businesses will most probably be in property on the side.

For me I have always traded my time for money.

For example 8 hours a day = 40 hours a week = Money

I needed to find a way to get paid while I sleep. Property was the perfect business.

The three biggest advantages of being in property in my opinion are.

1.       From holding property for long periods of time you will acquire equity which is basically a saving account which saves without you doing anything.

2.       Passive income from monthly rental money which can give you the freedom to spend more time with family, traveling or giving you time to spend on other business ventures.

3.       Being able to leverage a property. The fact you can pay 25% of a property and see 100% of its return is not possible with any other investment. Keeping the asset and releasing funds once equity has been built up through a refinance is a great way to generate more money.

Property investing is also a perfect way to creating a pension pot for your retirement. The return three or four properties will give you with all the other advantages of capital appreciation and monthly passive income is much better than a state pension which your going to have to wait till your about 85 to have access to soon !