Common Misconceptions About Property

Before we even get started, let me share with you two of the biggest misconceptions that the vast majority of people have about investing in property:

You need to have a lot of money
It’s risky

There are many more, but in my journey of more than two decades in property investing, those are the two misconceptions I am hearing all the time. And most likely you have thought about these terms too.

Unfortunately for most people, they hear those misconceptions and don’t move any further in property investing. But what if there was somebody who could help them to dispel those misconceptions, show them how to invest in property with little or even no money down, and explain how to manage the risk and have a long-term profitable investment?

That’s precisely why I wrote my book and why I am offering property investing training and mentorship. Because, if you know how to do it properly, investing in properties is actually easy. You might possibly need to change your mindset and overcome your fears about a few things that you currently believe, and that’s the more difficult part. But, more about that later.

Please read my book at least twice and highlight important sections. I’d like you to come to one of my seminars, too. It is very important to have the right knowledge and mindset in order to succeed. My book answers some important questions, but you will need to keep learning.

Did you know that about 80% – yes, that’s a whopping 80% – of wealthy people in this world have acquired their wealth through property in one way or another, be it development, flipping, investing, or simply the family home that has quadrupled in value over the years? Wouldn’t you like to be part of that group?

How Can I Make Money In Property?

This is probably one of THE key questions. It is definitely possible to earn money with property, but also to lose it. That’s why the right knowledge about selecting properties, managing risk, and other topics is of essence.

There are many different strategies available in property investing that I will be sharing more details about in my book and in my training program. But to start, let’s look at the two ways in which you can make money in property on a high level:

Increase in value through appreciation
Rental income

You will need to decide which one to focus on for each property you plan to acquire, as quite often properties with a good appreciation potential do not give a high rental income and vice versa. But who said you can have only one property? In fact, savvy investors build up a portfolio over time that suits their strategies and financial situations and I’d like to encourage you to do so too.

Passive Income

One of THE key advantages you have as a property investor is the ability to create a passive income for you and your loved ones. Passive means that you do not need to work for it and the income just keeps coming every month. It doesn’t mean that investing in property is totally effortless, but you can do the work once and reap the benefits forever. Isn’t that fantastic?

This passive income can serve as an additional source of funds, to help protect your family, to use for travel, pursue your hobbies and dreams, help the less fortunate, and potentially enable you to retire earlier and supplement your pension. Did you know that a vast majority of retirees do not get a sufficient pension to enjoy a comfortable retirement without having to worry about money? I hope to be able to help you not to fall into that category!

How Can I Guard Against Inflation?

The interest rate you can get on many financial investments, including term deposits, is often below the rate of inflation in your country. What does this mean to you? It means you are losing money!

As well as also being susceptible to inflation, asset classes like Derivatives (e.g. options or structured products) and Alternative Investments (e.g. closed-end mutual funds) bear additional hidden risks.

Commodities (e.g. gold or silver) and Property are real assets. This means they are physical items that can be touched and felt and are of finite nature. Therefore, their prices will automatically rise if inflation rises (all other factors being equal). If inflation increases, pushing up their prices due to higher demand. In contrast, monetary assets will lose some of their value through inflation, whereas real assets increase their value and hence are a good protection against inflation.

Is My Investment Secure?

Security is naturally one of the most important aspects that each investor is concerned with. And if done correctly, property is one of the most secure investments you can make.

Property prices fluctuate much less than stock, commodity, or other prices. Over time, the value of your properties should increase and thus build up what we call equity. At the same time, equity gives you more time to react in a downtrend.

There is a constant demand for property as the population of this planet is continuously increasing and people need a place to live. The trend to urbanization has been running for centuries.

Understanding why property is such a secure form of investment is the first step to overcoming the misconception that it is risky. While certain risks do exist, those can be managed. Important is to recognize and mitigate risks so we can reduce or eliminate them.

But Where?

You will most likely have heard that one of the most important aspects of selecting an investment property is its location. One tip I have shared with you already is the continued rise of urbanization.

How To Let Other People Pay For YOUR Investment

You invest and earn, other people pay for it. That is one of the other key advantages property has over most other forms of investments. In property investing, we are using the very same principle of leverage to our advantage. Leverage means that we are magnifying a financial outcome using given resources.

Of course there are many practical aspects involved in such scenarios, so please ensure you have the right knowledge before you embark into such ventures and consult professionals where necessary.

More Advantages Of Investing In Property

There are a few additional advantages of investing in property. If you buy a property, you are the “CEO”. You are in control.

Armed with the right knowledge, property deals are easy to analyze, understand, and execute. For some of the complex financial products, even sophisticated investors sometimes cannot understand them.