It’s a question people ask all the time, especially when they have previously had nasty experiences. Investing in property can do various things for an individual but the one benefit that stands out for me is that it can bring you to a place of absolute financial freedom if you are “property educated” – and that would mean different things to different people.
For me, the main important reason why I invest in property is because….
...“There is no other asset that once you have bought it, it not only goes UP in value, it also gives you an income every single month as tenants pay you to live there!”
The thought of doing something once and reaping an infinite financial reward of passive income absolutely motivates me. Now the cool thing about this is you don’t even need to tie up all your capital to buy the property as you can leverage the banks’ or joint venture lending.
Here are three reasons why I invest in property
1. Cashflow
A positive cash flowing property, generates rental income which more than pays for all associated cost of investing in the property. The rental income can also help build up lump sum cash for other investments or subsidise your dream lifestyle.
2. Inflation Proof
Currently, the trust of the general public in the banking system continues to dwindle and the emergence of crypto currencies seems to be taking the forefront of the stage.
Investors, skilled or unskilled are turning away from saving their hard earned cash in the bank for a mere 0.5% interest. The Bank of England pledged £2.5 billion of public funds to stabilise the economy post Brexit, this means investors are no longer seeing a return on their savings. In fact, money in the bank continues to lose around 2.5% of its value due to inflation!
3. Pension - Nobody Can Rely On Pensions Anymore
As at today, a £100,000 pension is paying out a measly £75 per week, those nearing retirement age are finding themselves at risk of losing everything they’ve worked hard for over their lives.
Over your lifetime, you can only build up a pension pot of a maximum of £1.5 million. In reality, most people would not hit this milestone. Once you’ve invested in a pension, the money is locked away until you retire.
With adequate property education, investing in property can help you retire early, have great flexibility and create income you can live off in retirement – which is definitely more than £75/week.
If you find something interesting, or want more information on any particular subject, I will be more than happy to share my experience or knowledge in such area in order to help.
Regards,
Emmanuel Adedipe | achieving more together
