Property is by no means a get rich quick solution, property works exceptionally well when given time in the market to grow and create wealth. This is why we encourage our clients to adopt a long-term view, 7-10 years, sometimes even more, to reap the best returns.
It can be easy to get discouraged while we wait for our properties to do their thing, so today I want to remind you of 3 awesome things about property that you might be taking for granted.
One of the key reasons that make property such a fantastic asset class. If you have $100k, how many shares can you buy? $100k worth. How much property can you buy? $500k worth (based on an 80% loan for new stock). When you invest in property, you get to own a $500k asset and make growth on a $500k asset with only $100k down. How awesome is that?
2. Passive income
People always come to me wanting to give up their day job tomorrow. Property isn’t like that. As we’ve already said, property needs time to do it’s thing. Let’s say you bring in $600 a week, that’s about $30k of income on day one! But on day one, you’re using that income to service your debts. It’s going to take time to start seeing the increase in passive income and the outcome that we’re looking for… But you’re still making $30k on day one!
We might only start to see capital growth 3, 5 or even 7 years down the track. But it’s 100% worth the wait! Capital growth is where the real wealth happens, some of our clients have made $150k in just a couple of years! Just think for a moment, if you could have bought any property in the country 5 years ago and still owned it today, would you be happy with the growth? I know the answer will be yes. But sadly, we don’t get to see or be excited about that growth every day.
We need to remember that time in the market gives us leverage, a passive income and growth. Together they give us a fantastic result and in reality, 10 years will be gone in the click of your fingers.
Don’t sit where you are today in 10 years and think “I wish I had done something sooner”. Take action today and start securing your future though property investment! Join us at our free Property Investor Night near you! We can help you get these three elements of property working for you to secure a brighter financial future.
Positive Real Estate