I have been tumbling this question over in my head for a while… what drives people to begin property investing? Obviously there is the obvious "increased wealth" … but what does that mean for people? And does anything else come into the equation? Why property? Why now? Do you have any altruistic motives? If you own rental properties, why did you choose this type of investment vehicle? What do you hope to achieve through your property investment?
A lot of investors state that improvement factor is the motive. Also the gearing is higher in property than say borrowing against shares for the next deposit. Say you buy shares in the stock market can you improve the value of the shares through a renovation or a sub divide ? What I hope to achieve in the long term is financial independence.
However having the PM ring me with a leaking shower I am beginning to wonder if it is worth doing.
Also there are two types of property investing. Passive . Buy and Hold – long term profit. Negative cash flow or Positive cash flow Active – Buy – improve – sell – short term profit.
Also having previously experienced rapid 4 year growth in a property it becomes addictive and gets into your blood. I am thinking even though my wage is not enough to buy property at the moment on how I can invest in property without much wage income.
It is important to have a diverse investment portfolio, with property investments usually outperforming equities and bonds, it is no wonder that it is the preferred investment class of wealthy investors. Returns from property investments are also less volatile than those from stocks. Mortgages also allow individual property buyers to buy a large asset and enhance their returns in a way which is difficult for investors in stocks and bonds to achieve.
Property markets rise and dip but the long term trend is upwards because of growing populations, urbanisation, and people's desire to improve their living standards, making it a very attractive investment opportunity.
To answer your question, people invest in property to diversify their portfolio's, protect their returns and to increase in return on their investments.
Returns from property investments are also less volatile than those from stocks.
Only because they are a clunky investment which is sold on a sporadic basis through an archaic system incurring disproportionate transaction costs when compared to other investments.
Like your "area domination" idea, Scott No Mates, brutal
Duckster, I'm betting your PM really likes you and just wants to have a chat! lol I had a selling agent ring me today and run the numbers on a deal today, they love a good chat!
What about passion? What about just being really passionate about doing it, or passionate about building, or passionate about creating new housing and new types of housing?
Sorry few too many passionates in there but you get the point.
Maybe after people make a lot of money then they start to ask how they can give some back/share it around, but until it is a good couple mil……
Marthamel,
Great questions for those that ponder them honestly and carefully. Thankyou!
Personally I have to say that I invest in property because i think that I am getting more from it than what I am actually putting in.
Basically selfish gratuitus greed.
Please let everyone know however that I may consider small insignificant donations to charitable causes to wash away any guilt and claim I am not pure evil.
Maybe after people make a lot of money then they start to ask how they can give some back/share it around, but until it is a good couple mil……
Maybe- If you have to wait until you make a good couple of mil before you give to charity I'm willing to bet you never do.
If you have money to spare to invest you have money to give to those less fortunate than yourself. Pity everyone if only millionaires helped charities.
I'm talking giving big money to charities or creating charities.
I give all the time, as should everyone who does have a few bucks spare no matter if they are property investors or living at home with mum and dad.
I'm saying if you look at the people who have made 'big money' (eg Steve McKnights 2nd book) they have had some sort of why moment and decided to give back to society in a big way.
You can't give away $1mil if you don't have it to start with. You can't give away $1 if you don't have it.
//What drives people to begin property investing? Obviously there is the obvious "increased wealth" … but what does that mean for people? And does anything else come into the equation? Why property? Why now? Do you have any altruistic motives? If you own rental properties, why did you choose this type of investment vehicle? What do you hope to achieve through your property investment?//
I might be able to offer something different?
I started on property investing when a friend of mine gave me tickets to see Steve's seminar last year. At the time, and more so now, I had been feeling like the job I was/am currently doing didn't amount to much and the rewards were hard to see, if and when I did see them. I knew that I had potential in me somewhere and I needed some reason to unleash it. I felt that property would be a challenge, also as I LOVE houses I thought it was the logical step to take. Property investing for me is more a hobby but hopefully in the new year my hobby will prove to be profitable! Basically I need a little self development, a few more challenges and something that I can succeed in and be proud of. Property jumped in front of me and I couldn't knock it back.
I am 25 and have realised i am sick of working for other people.
I hate with great passion, the sound of an alarm clock in the morning. I want to work my own hours when i want to
I am addicted to property… yes i have taken the first step and recognised my addiction I will sit on websites all day every day looking at properties, crunching the numbers, looking at what renos i could do to increase value… I JUST LOVE IT
I just wish i had discovered it at an earlier age… I CANT WAIT for 5 years down the track when i can look at my property portfolio and say 'wow'… look at what i have done for my future.
Its about living the life i want whilst feeding my addiction… and reaping the financial rewards later
I have been tumbling this question over in my head for a while… what drives people to begin property investing? Obviously there is the obvious "increased wealth" … but what does that mean for people? And does anything else come into the equation? Why property? Why now? Do you have any altruistic motives? If you own rental properties, why did you choose this type of investment vehicle? What do you hope to achieve through your property investment?
I am interested to hear your thoughts…
Martha
Got into investing because I wanted to get out of the rat race. Property is a tangible item that we have a greater of control over than say Share investing. We could see the actual results of our labour in the increased rent and capital appreciation. There is no better time to start investing than right now, and I know I want to still have enough energy left in me when the fruits of property investing start to bear.
Regards,
Daniel Lee
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