Reasons To Consider Investing In Property
Do you want to retire early and escape the rat race? Of course you do. Property Investment can help you accomplish your goal and live the life of your dreams on your terms, which is within your reach regardless of your current situation today.
We would all like to have the freedom to do what we want, when we want, where we want and with who we want, and enjoy a comfortable retirement without worrying about money. Unfortunately, it is sad but true that a significantly large portion of the population will not have sufficient pension funds to support them in a comfortable retirement.
With the average life expectancy increasing, the period people are living in retirement is also increasing. This has resulted in increased pressure on the state pension, which is unlikely to be able to afford to support us all at the same level going forward. We are therefore likely to see further increases in the retirement age, and the erosion of the value of the pension payment. Most people will be unable to rely on their personal or company pension schemes to support them in retirement due to their level of performance, particularly over the last decade.
Have you ever taken the time to check and see how much your pension is currently worth? and what it is forecast to be worth at your retirement age? WARNING: it may shock you! Have you checked to see how much of your salary you would need to pay into a pension in order to retire with the same standard of living that you enjoy whilst working? WARNING: this may also shock you! If you haven’t checked, it is worth doing. You can access free pension calculators online, where you put in different figures to see how much you would need to pay in each month to achieve a certain monthly pension amount in retirement.
The best way to ensure a comfortable retirement is to take control of your own destiny, which may be the reason that you are reading this book.
If you want to have financial freedom, a nice lifestyle and retire early and comfortably, you need to build a money-making machine, which harnesses the power of leverage and compounding to create a passive income stream for the rest of your lifetime. In other words, you must automate your savings and investments in a tax efficient manner that will continue to generate an income for you. The great thing about property is that you can use leverage and the power of the compound effect.
“If You Want To Be Financially Free And Enjoy A Comfortable Retirement, You Need To Build A Money-Making Machine.”
– Calum Kirkness
I have tried several different investment types and by far the best performer has always consistently been property by a large margin. Not only can property investment provide you with a comfortable retirement, it could allow you to retire early and live your dream lifestyle. Wouldn’t that be a win-win?
Why Property Builds Wealth More Consistently Than Other Asset Class:
If you owned property during the most recent economic financial crash in 2008 and the following years of decline in property prices, or you followed the news and what was happening at the time, then the headlines might cause you some emotional pain. I personally remember the media headlines leading up to the peak and down to the trough. For some, I’m sure it felt like the market would never recover! Except for those living in, and around, London and Aberdeen at the time, where property prices continued to climb post 2008 and declined at different times later. More on microeconomics, and the reasons for this, later in the book.
Fast-forward a few years and prices throughout the rest of the country have slowly recovered, and people are building wealth through property again. The reason is, there was nothing fundamentally wrong with the market; the prices simply became unaffordable. Everyone was enjoying the party, which was being driven by the media, the banks and human behaviour, but like all good parties, they come to an end eventually and a hangover follows. The bigger and longer the party lasts, the bigger the hangover and the longer it takes to recover! During periods of recession, the rental sector tends to increase, and rents generally don’t fall or not as fast as property values. This means that if you have bought well, and ensured the property cashflows well, you should be able to keep the property rented out during any recession and decline in property prices and come out the other end in pole position.
“The Bigger And Longer The Party Lasts, The Bigger The Hangover! Property Cycles Are The Same.”
– Calum Kirkness
“Study And Prepare Whilst Others Are Busy Enjoying The Party, And Buy Whilst Others Are Suffering From The Hangover.”
– Calum Kirkness
Those who were buying properties solely because prices were climbing, and for no other reason, only have one exit strategy: to sell later and hope that the property has increased in value. When the music stopped playing and the market stopped climbing, many of these so-called investors lost their shirts!
Wise investors purchase properties on a sound judgement that the property will generate more income than it costs to own during the period of ownership – known as cashflow. These investors who understand cashflow, and invest wisely, knowing that the cost of holding the property will be less than the ongoing rental income, are not so concerned about what the market values do. If prices drop, they know they are in a relatively safe position. If prices rise, they have more options. If we add “buying well” in to the equation and buying below market value (which we will cover in the book), then this further reduces any risk, accelerates the options, and speeds up the rate of growth in building your property investment portfolio.
One of the greatest forces on the value of an investment is supply and demand. Our supply of development land in the UK is limited, yet the population continues to increase. Everyone requires somewhere to live, so with property we have the force of supply and demand continuing to work in its favour.
The other great thing about property is the opportunity to use leverage on the amount of funds that you have available to invest, which is something that you cannot do with stocks.
And finally, not to forget the power of the compound effect, which is the most powerful of all once you understand it.
You may be thinking if property is such a good investment, why don’t more people invest in it? Here are a few common reasons that prevent people from starting to invest in property or scale their property investment business and portfolio:
10 Things That Might Currently Be Holding You Back:
- Lack of clarity – You are not sure what you want to do or achieve, or you are confused from listening to others.
- Lack of courage – This is usually down to mindset, which we will look at later in the book.
- Lack of knowledge – A lot of people either don’t know where to start to obtain the knowledge, think they require a lot of knowledge and don’t bother to start, or some people never think they have enough knowledge and keep consuming more and more and never get started.
- Lack of experience – Experience is certainly valuable, but we all have to start somewhere in order to get it. Having the right knowledge before starting reduces risk.
- Lack of money – This is a limiting belief and mindset issue, which we will look at later in the book. It is never the lack of resources that prevents people starting; it is the lack of resourcefulness that prevents them taking action.
- Lack of time – We all have the same amount of time each day, it’s how we use it that matters.
- Lack of patience – Some things take time. Wealth is best built at a steady sustainable pace and we cover the reason why throughout the book. How many get rich schemes have you seen people succeed with? Not many, if any, I bet!
- Lack of belief – You don’t believe in yourself or that you can achieve your goals. Pretty much anyone can become a successful property investor with the right knowledge and level of resourcefulness.
- It seems like too much hard work – The great thing about property investing is that you can use leverage and compound effect to ensure that your money is working for you, rather than you having to work for money. You can also outsource a lot of the tasks.
It is important to understand which of these factors may have been, or may currently be, limiting your progress and preventing you from taking action. Have a think about how much these beliefs may have cost you in missed opportunities to make serious amounts of money and build wealth.
In my book Property Success Insider Formula, it looks at all these points in more detail and show you how to overcome them.
If you are not willing to learn, no one can help you. But if you are determined to learn, no one can stop you.
Be warned, Property Success Insider goes deep. I encourage everyone interested in property investment to read the book from cover to cover, without skipping any sections, and then read it again. You will see how each section links with the other and how each individual part is important in understanding the whole process. Missing just one or two key parts can have a massive impact on your overall results and success. It may be difficult and a bit uncomfortable to grasp the first time around, but once you have read the book a second time, the picture will become clearer and much easier to understand. The more you focus on a particular strategy and area, the easier and quicker you can build your expertise and success.
The opportunity for you to make serious amounts of money and build wealth from investing in property in the UK market is huge, it is real and the opportunities and possibilities are endless. It is available right now and it all begins with you raising your awareness and taking action on these ideas and information.
If you would like to start investing in property or increasing your existing property portfolio to the next level, but require more in-depth information, you can contact us to today for a friendly chat to see how we can help and support you achieve the success that you would like to achieve.
Property Investor, Developer & Educator