Many of the world's wealthiest people have made their fortunes by building a profitable property portfolio. The purpose of this article is to show you the top five reasons why you should pursue property investments and build a property portfolio.
When you successfully build your property assets and build a profitable business you will be able to quit your 9 to 5 job and unlock the chains that have been holding you back. There are very few people that can honestly say they like their jobs, in fact most people are very unhappy with their work.
There are very few people that want to continue working until the reach retirement age. Nobody wants to be a wage slave for like, constantly struggling to put a roof over their heads, food on the table, and clothes on their back. It is very discouraging to think that you will likely end up losing more money than you’re earning and will end up retiring with the small income you might receive from social security.
If you were to ask a slave if that lifestyle represents freedom, the answer would be no. That way of living is not freedom and it is definitely not financial freedom. When a property portfolio is created you will have the freedom to work whenever you want to since you will be your own boss. You will be able to manage your assets the right way.
2. Leveraging the Mortgage
As an example, you deposit $50,000 into your bank account. You are earning interest on your deposit, but the interest rate will likely be very low. Once you factor in taxation and inflation you will see that you are not doing the deposit any justice. In fact, it is a total waste of time.
By taking the same money and using it to invest in a property that is valued at $250,000 and using the banks money to leverage up the mortgage, you have the potential to make the full value of this property investment. This is without including the original $50,000.
3. Profiting twice from your property's value.
With an investment property you are able to profit twice. The first is rental income. The second profit will be seen as the property value grows year after year. While the real estate market by take a downward turn, your investment property will usually keep the bulk of its original value. It will turn a profit when your property begins to cycle in the market with capital growth.
4. Consistent growth of your property
Over the past five decades, real estate values have doubled every seven year. That works out to a growth rate of 10% per year.
As long as your property portfolio is growing, your income will increase. The passive income you generate does not stop. Why? Each year your property value goes up and the rental income will rise as well. Watch those money stacks pile up right in front of your eyes.
By keeping the ownership of you investment properties you will also own the income that the property generates. The property values growth is passive income. You will be able to retire in style and pass the income generating property to anyone you want to when it is time for you to leave the Earth.
In summary, there are risks involved, as with any type of investment. Use caution when you invest, but don't let it stop you from building a property portfolio and reaping the benefits it can provide.
