Listen in as Graham “educates” his eldest child on the ins and outs of buying investment property. Lesson #7: Why Invest in Property?
Happy New Year and strange that as yet I haven’t received your Christmas Present! You could buy me the after shave I like, you know the one as you seem to like it as well!
Its 2016 and obviously a time for reminding yourself as to what the year is going to look like and what you are going to achieve. Investing is the same as much as its important to remind yourself why you are doing it and what you are trying to achieve. There are many reasons why people invest and your goals need to be your goals, real and alive to you not some body else. Obviously being your Father I have very strong opinions around what I think you could do but history has shown us that you are only going to do what you want to do anyway (remember your year 12 exam results!)
We invest to make our money do as much as possible for us in an investment option that we are comfortable with. We also tend to invest for future benefits, people my age (50) tend to invest so they have money for their retirement whereas people you age tend not to invest at all. You starting early is a brilliant idea and sticking to it will give you a future lifestyle that at the moment is a little difficult for you to imagine. It will, all things going to plan, give you options around travel, work and study. The list is endless around what you are trying to achieve.
Whypeople invest in property is a long list as well:
- You can improve and add value to some properties
- You can subdivide
- You can leverage off the increases values
- Banks love to lend against houses
- Property investment can give funds for other business efforts
- Property is saleable
- You can control how its managed
- You can drive past it and feel good (or bad) about it.
- Other people pay for your borrowing
- Tax breaks help …..
I’ll talk about theses in more detail as we go on but my point today is just to remind yourself why you’re doing this and what the goal looks like.
Your Loving Father.