peterJonathan Thompson
You might be asking yourself, “Why should I begin to invest in Real Estate?” Here are five good reasons to start your property investment journey. I hope this will cause you to think seriously, and cause you to invest wisely into your own future.
Passive income
Passive income is defined as “earnings from a rental property, limited partnership, or other enterprise in which a person is not actively involved.” If you invest properly, a rental property should provide you with passive income, every month. Putting the management work into the hands of a professional, Registered Real Estate Agent, should reduce your effort, time, and headaches. Generating a regular passive income can have a massive long-term effect on your financial situation.
Capital growth
Capital growth is where an asset increases in value over time. This means that you buy a property at a price, and later you see that the property is now worth more than you originally paid for it. Investing in the right area, and in the right property can see very good growth rates. In future, selling the property will release this new capital.
This can be used to re-invest or to pay for large expenses. I recently read a story of a woman who bought a home in the Bay area of California, USA. She purchased the home on a mortgage for US$300 000. Over the next 30 years, the area became a very popular area. Many new homes were being built and property values continue to rise and rise. Today her house is worth over one million USD! She has realised a fantastic rate of growth on her investment.
Public needs
Fortunately, people will always need a home to live in. That means that investing in Real Estate will always have a market. Perhaps the rental market will be stronger for a season. Other times people will be looking to buy or to sell their houses. Capitalise on these trends by being flexible with your Real Estate investment plan. If you can identify the next trends, investing becomes far more successful. Watch Real Estate trends!
Legacy Building
When you pass on, one day, what will you leave behind for your children and grandchildren? When you are able to pass on a Real Estate investment, your children are able to continue benefiting from your wise choices. They can begin their life journey in a better position than we did. Leaving a legacy does so much for the next generation.
Building an asset base
Owning property creates an asset base. Perhaps there is something you want to do in life. Having an asset base opens up possibilities. Mortgages may be offered, because you have tangible investments. You assets can be leveraged to invest in new opportunities, to purchase another property, or to branch out in new areas.
Success will often breed success. Wealth creation starts from a small place, is nurtured wisely, and can grow into a huge harvest. I hope these five reasons will cause you to think about the need to start on your Real Estate investment journey today!
Jonathan Thompson is a Registered Real Estate Agent who works in Bulawayo. He has nine years’ of experience in Real Estate in the USA, and another 11 years’ experience in Bulawayo. He is the founder and the Managing Director of Thompson Properties (Pvt) Ltd
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