Yes, it is true! Property is an excellent investment and if you do the few basics correct and you keep it for long enough you will make a good investment return.
The investment strategy of many property investors is to buy property with the
intention to keep it for an extended period, grow their property portfolio over time
and earn a passive income thereon in the future. That is a good idea, but as we have
come to know "good is the enemy of great".
This does not mean that the concept of owning property for the reasons stated above it is not a great goal, but rather that the concept of owning a property for a long time to build the portfolio, may not be the greatest plan. Apart from the potential risks relating to new areas developed, road changes and various other changes in an area, that may affect your property values, there are better options out there for the astute property investor.
"Price Is What You Pay, Value Is What You Get" - Warren Buffett
There is a greater truth in property investment approach that may be implemented to
reach your goals substantially faster, with less risk, lower purchase prices to
property values (75% of market value), yielding higher monthly net income and
predetermined returns, that mitigate the risk for the property investor.
The key with property investment is to learn to "own your returns" with property as security and not necessary to own the property and earn potential investment returns thereon. Unfortunately, there are numerous organisations that only promote the latest strategy, seeing that the current good product is acceptable standard.
The questions therefor are:
- Do you as the property investor want to learn more on how to reach your property investment goals earlier?
- Do you want to have greater security during your investment period?
- Do you want to earn predetermined returns irrespective of market influence?
The graph below indicates the difference between the average buy to let property and
recovery products through which you can assist a property
owner, as an impact investor whilst owning predetermined returns, whilst having the
underlying property as security.
During the following editions we will explore more of this and how the property investor can get access to this knowledge and be educated further.