What do you LOVE most about Property Investment?

Right so I thought I'd start the opposite thread as I don't seem to see one started.

What do I love about it? Many things. My top 5.

1. It's a realistic, viable vehicle for us to build significant wealth in an acceptable timeframe with manageable risk/exit strategies.
2. The fact that it's not an even playing field and that hard work and dedication in this game can see you achieve greater results in a relatively short period of time.
3. Many strategies at your disposal to employ along your journey.
4. Can be a highly creative and satisfying career which (importantly to me) can also yield great financial return at the end of a deal/project/boom period.
5.Your ability to significantly leverage finance and expertise. A lot (sometimes most) of the 'hard work' is done by many other professionals on your behalf to help you become financially successful.

 

It is available to all. You just have to start, learn as you go, and keep going.

 

Agree with both Leo & Charlotte, but for me it's quite intangible. Ever since I can remember, I've had a fascination with property. I don't know why.

 

Money

 

your reading my mind.

 

Money hungry women you and @MTR

 

It allows me to give a lot of money (rates, stamp duty, land tax, GST, income tax, capital gains tax, ...) to the three levels of Government and them to waste it.

I give more than I ever dreamt possible, even in my wildest dreams.

 

This is not supposed to be a depressing thread...

 

I get to live in it.

 

Gearing. I invested the same amount of money at the end of 2015 in the sharemarket and an IP, but the IP's ROI is significantly higher due to gearing. Granted I could have taken a margin loan if I wanted the same level of gearing, but the risks of borrowing to invest in the sharemarket are high and could result in me losing all my capital. At least that is unlikely to occur in property...

 

Let see how well you handle when your rubbish isn't collected for a few weeks
or the toilet pipe blocks out on the road outside your properties.
I only appreciate paying rate then all other time a waste of cash hehe

 

I bought half an I.P. with no money down, which was great for me because I was low income earner with no savings.

I bought an old dump that would not sell then spent 5 months renovating it, taking it from undesirable to desirable (multiple rental applications ) and increasing the value.

Creating value by building.

Treating tenants with respect, creating nice family homes for them to live in and keeping the homes well maintained.

Being able to work on properties myself, so I can see the rewards of my efforts through an increase in the property value. Then hiring contractors to do the rest. I love that too.

Just generally taking something that is horrid and run down and creating something out of it that is enjoyable to spend time in.

 

you don't have to take out margin loan you can take money out of your properties paying the same rate as the properties and gear into the stock market without ever facing margin call

 

That's what I did in fact do, but I don't consider it gearing as $100k of redrawn funds gave me $100k of exposure into the share market, whereas $100k of a deposit on a property gave me $500k of exposure to the property market (give or take some for stamp duty etc).

The $100k that went into the sharemarket is now (say) $130k but the $500k property has gone up to $650k (same return, 30% over 2 years) - but the ROI is higher for property.

 

This is a good strategy because you have income from your shares and property and you have income from the property and capital growth from both. Win/win/win

The other option is to borrow against equity in property to buy shares. For example, I am just setting up a $150k loan for investment purposes that is secured by equity in an IP. I can use those funds to buy shares. It's another option, not essential to do it this way.

That actually answers @Leo2413's question too... I love that I can use property as security for a loan and then use the funds from the loan to invest how I want.

 

It keeps me broke ...... while building up an asset base.

Fits my “profile” perfectly.

 

Mmmm money!!!

 

Spruikers

 

I have enjoyed it because it has allowed me to visit areas outside of my state that quite possibly I may not have otherwise.