Most
millionaires have made their money through property.
So can you.
The key requirement is ownership of land and
buildings. This enables historical trends to
kick in where property prices rise steadily
over time. Properties in good locations tend
to double
in value every 8 to 10 years. Just think of
your own house: if you knew when you first
bought
it what it would be worth today, how many would
you have bought at that price if you had had
the money then? Two, three, four? Or more?
Based on historical trends, a house worth
half a million
dollars today should be worth about $1 million
in 8 to 10 years’ time.
With increasing birth rates, record levels
of migration, longer life expectancies and
more
single-person households, the demand for
accommodation and growth in property values
can only increase.
The good news is that it's never too late
to invest in property. And owning a second
investment
property is often much easier and (far
more affordable) than your first home.
If you have sufficient equity in your first
property you can borrow all the money
you need to invest
in a second. The repayments will largely
be covered by tenants and by the attractive
tax
concessions
provided by the federal government. This
makes the property investment exercise
very affordable.
As the landlord you are left to make
up any shortfall, which could be as little
as $30
pw*, or nothing
at all!
In summary, investment properties generate:
- steady
rental income from tenants
- an increase in capital value over
time
- attractive tax benefits
- security of ownership
- a growing asset base for retirement
- increased rentals due to housing
shortages
- long-term benefits for family
members.
If you have 10 years or more left
in the world of work, an affordable
investment
property portfolio can lead to
the financial independence
and freedom
you are hoping for. This strategy
has worked
very well for thousands of people,
and you can do it too. *Depends on a number of factors including
house price, deposit paid, weekly
rental, and your
earnings. An example appears elsewhere
in Freedom News.
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