Would you like a surprise? Property investing is a tried and tested method for building income and wealth that is bound by certain assumptions and misconceptions. So what’s the big surprise there? Stay with us as we go beyond the superficial to explore the deeper WHY in why invest in property.
Why invest in property?
Property is a great investment, it has been for centuries and will continue to be in the future. We could delve into house price growth over the long term. We could explore increasing rental demand from population expansion and under-supply. We could discuss income streams, asset diversification and pension planning. But, today at least, we are not going to do any of that. Why not, you ask?
All of the above are great features of property investing. Earning a solid income, generating wealth and creating generational assets are all enticing benefits. However, have you considered the big WHY that would drive you to pursue such things? The why that sits behind every decision you make. The why that maybe you are not even aware of.
Property investing is unique in the way in which it gives back. Now wait a minute, what about all those money-grabbing capitalist landlords who care about nothing other than themselves? Remember the misconceptions? Stereo types exist for a reason and historically renting property had its days of gun-slinging cowboys. As investors we look forward with optimism. As landlords it is our duty to change misconceptions and assumptions. But wait, we still have not arrived at the big WHY.
The big WHY in why invest in property
Property investing, beyond the income and assets and wealth generation, is a people business. It deals in the interests of people for the interests of people. We appreciate that not all property developments are ethically guided and questionable decisions continue to be made. However, a core value we uphold at the Asset Academy is to achieve growth and prosperity through ethical investing and creating situations that win on every level.
The win-for-all approach is what drives the strategies we teach. It provides an opportunity for landlords to make a difference and provide solutions in many ways. To quote a misquote “If you are not part of the solution, you are part of the problem.” Is it a surprise to mention ethics and landlords in the same sentence? Next we’ll look at how this works.
Starting with the seller, more often than not they will be relieved to sell and be able to move on with their life. Occasionally the property may have become a burden for seller and the cause of severe stress and anxiety. This may be because they are in negative equity, they cannot afford to renovate or they are on the edge of repossession. All of these ‘pains’ you can help to alleviate, so perhaps your strategy could be to seek out sellers who are distressed.
The tenant will of course have a safe, comfortable and healthy property which they can call home. A property that is professionally managed and maintained, in a location where people want to live. Like sellers, tenants can be in desperate situations too. Providing properties for people who are reliant on benefits, who turn to charities for help or who have specific needs just to get-by, can be rewarding on every level.
Of course property investing is not just about rental income. If you plan to buy and sell for profit, putting the time and effort into creating a good quality home that meets the local demand could be giving someone the opportunity they have been searching for.
Now we begin to look at your power team. First in line are the estate agents and letting agents with whom you will develop strong working relationships if you want to be successful. Of course you are helping them by bringing business to their door but you could also help by taking slow-to-sell properties off their books or taking over a rental property where the landlord is not performing and has become a problem.
The mortgage broker benefits by arranging mortgages for a fee. It can be easy to be put off by the fee in the early stages. However, the advice and support they can provide will be invaluable in the long run.
Like the broker, the solicitor will benefit through their fees. The sales and contracts that you bring to them will have a direct impact on their business.
The Contractor and Trades People
Whether renovating, extending or developing, contractors and trades people will benefit greatly from the business you bring them, especially if you can keep them for a number of projects.
Where necessary an architect will be employed to design and make compliant any significant modifications you have planned.
The Accountant and Tax Advisor
Further down the line you will need an accountant and tax advisor to manage the financial aspects that come under the interests of HMRC.
Finally, for people who have savings sitting in the bank that are earning interest on rates well below the rate of inflation – their money will be devaluing. By lending the funds to you, the investor, you can give them a substantially higher return which they will undoubtably be delighted with.
Are you surprised at how many people you can help just through property investing? There are also many secondary benefits such as bringing empty properties back into use, improving communities, helping the housing supply etc. The big WHY in why invest in property, when we strip it back, is creating a mutually beneficial network of positivity and good. Now surely that is something worth investing in.
If you like our approach, have story to tell or have questions, reach out through Facebook, LinkedIn or Directly. We love to hear about people’s journeys and how education in property investing has changed lives.