The decision to invest in property (or “real estate” as it’s often called) is the most important decision you’ll make on your quest to get rich. Real estate investing is for everyone, from the worker to the office secretary, and anyone can be successful, even without money of their own. There are people who can show you how to do it. Real estate investing is undoubtedly the easiest way to escape the rat race and enter the world of the rich. The advantages of real estate investing are clear and easy to understand and you cannot afford to ignore the facts. You just have to keep reading.
Is it wrong to wish rich? Is it wrong to wish for the ability to do what you please, when you please? Is it wrong to want to provide the best for your loved ones, your family? His pious and humble colleague would say “yes”, but he is the one who will never have the confidence to stand up and do something himself. He will always be a slave to his monthly payroll. You and I will never fully understand him and his ilk because we truly believe we can do better. If you don’t think you can do it, then you should! How can you do it? You must learn to invest in property. Get some education on real estate investing. It’s really not difficult. You don’t need any A-Levels or university degrees. The information is available on the Internet and you can understand it as well as anyone else. Anyone can understand the concepts and techniques that are available to you on the Internet today for free. Let’s open our eyes to the possibilities by discussing why I think property is a great investment.
Looking around us, we surely see an overpopulated country. It’s a good country, full of busy, hard-working people, all trading their time for money to support their flourishing families. Good. Nice to see them and you should be too. These people are the backbone of our economy and they go to work every day because they can’t think of any other way to make money. Today, you can count among them. However, you are different. You understand that there are other ways to earn money in this world without going to work and exchanging your precious time for money. Therefore, you are looking for a legitimate and moral way to get out of the rat race. You have found it in the form of real estate investment!
You understand that all your fellow citizens need a place to live. You can see that more and more people come to your country in search of work and a better life. Why shouldn’t they? Maybe we’d be doing the same in his shoes. You can see that people continue to have large numbers of children who will also grow up needing a place to live. You look around and realize that there is only so much land to cover. As someone once commented: “Buy land because they don’t earn it anymore!”. You know that land is a finite resource and for that reason it will only increase in value as time goes on.
You’ve also heard that real estate values have continued to rise, so many of your fellow citizens can no longer afford to buy their own home. Many of them are required to rent, rather than buy. They have to rent from the owners. Wouldn’t it be great if you were a landlord, providing a good roof for someone while making a little money in the process? Of course I’d do it. Let’s do it.
Finite or limited resources, such as land and real estate (also silver, gold, oil, etc.), increase in value over time due to the power of inflation. Conversely, currencies lose their value over time as more money is printed and the price of goods rises. Real estate has to increase in value along with inflation; otherwise, you could buy a property today for the price it was bought for many hundreds of years ago at the beginning of our financial system! Think about that for a minute. When you consider that the main reason people need to work so hard today is to pay their rent or mortgage, what would happen to society if they could buy a house for a penny? People would hardly bother to go to work because they could afford to live very comfortably with the money they had. Without inflation, food, drink and services would cost a small fraction of today’s average wage, so people hardly need to work. Society would come to a standstill. This is clearly unrealistic because inflation means wages need to go up a bit too, but it illustrates what would happen if real estate didn’t rise with the inflation it has had and will continue to rise. Inflation is a reality so it should logically follow that the property will continue to increase in value over time. You can bet on it. If you bought a house 20 years ago, how much more would it be worth now? Exactly!
Inflation is clearly a good thing for real estate investors. Savvy investors know that, as the years go by, your new asset is virtually guaranteed to increase in value, thereby increasing your personal wealth.
We have established that property will increase in value over the years and that there is only so much to go around. You know that people will always want to buy your property because people will always need a place to live. You know that you can charge them an amount of money to live in your property that exceeds your expenses, so you are going to make a profit.
Your profit is called passive income and it’s all yours. That’s your ticket out of a life of servitude at your current job and into a Rolls Royce lifestyle. Passive income is what you get when you don’t do any work for your money. You earn while you sleep and that is the key to getting rich.
The population is highly unlikely to decline, so you will always have a market of potential renters. Land available for new construction is scarce and greenbelts are fiercely protected by the public and their councils. There is currently a massive housing shortage and government projected housing construction plans are projected to fall far short of the required numbers for decades to come. Construction companies aren’t even building many houses right now because of this recessionary period, so the deficit will be even worse. This is good for real estate investors as our assets will become even more valuable.
This article should have persuaded you that you need to get some real estate investing education to make it in the real estate world. There is a lot of free real estate investment education on the internet, but you need to know where to look. If you still need more persuasion on the merits of the real estate market, or want to learn more about the advantages of real estate investing, be sure to read Part 2 of this educational series. See you next time.
