Ever wondered which way to invest your hard earned money,well,sit back and read
these authored reasons researched to aid you save your cash in a growing environs.
A)It's safe (as houses)
There’s a reason why ‘safe as houses’ is a well-known phrase: it’s true.According to survey research land has increased in value at a rate comparable to that of the share market since immemorial – an average of 11.4% per annum – despite recessions and crises. It’s done so without the volatility of the share market, too making it an all-round safer investment.
“When you factor in the return and risk associated with buying property and shares, property wins hands down,” says investor, university lecturer and author Peter Koulizos.
B)It’s easy to get started
You don’t need specialist knowledge to start investing in property:in fact,many property investors didn’t start off intending to make their fortune through property.Instead,they just bought a piece of land.It’s only after seeing the value of their land increase – and realizing how much wealth you can generate – that many investors take the leap and start proactively investing.
C)It’s easier to research than stocks and shares
Playing the stock market requires a lot of education.You have to understand how the system works,understand the complex world of trading(not least the different kinds of financial instruments used),as well as research brokers and fund managers.Once you’ve done this, you’ve then got to get to grips with the companies on the market – which involves trawling the financial press, annual reports, other company releases and so on.
Investing in property,meanwhile, is much simpler:at its most basic,you can simply jump online and start looking at properties. Admittedly, there’s more to getting property investing right than just picking a property, but a significant amount of research can be done online (and is usually either free or inexpensive) or by visiting suburbs,open houses and auctions–without having to garner reams of specialist knowledge beforehand.
D)It’s relatively easy to get finance
It may not feel like it when you’re applying for a mortgage, but lenders like property.Home loans are a major part of any bank’s business model, and lenders are more likely to lend on residential property than any other asset class –as evidenced by the fact that they will lend a higher proportion of the value (up to 95%) and at lower interest rates than any other asset class – including commercial property.This makes it a lot easier to borrow to invest in property than in any other asset class.
E)You can use leverage
Borrowing to invest in property also means you get greater access one of the oldest and most powerful tricks in the financial book: leverage.
You can borrow more when using property as security as compared to using a share portfolio.Lenders will lend up to 95% of the value of the property,whereas they may only lend up to 50 or 60% of the value of a share portfolio.This greater borrowing power allows you to benefit from the capital growth of a larger asset.
Imagine two people in the same job,on the same income, same assets and considered to be a similar risk by the bank,the person wishing to buy a house may be able to borrow some more based on their financial position whereas their workmate may only be able to borrow less to buy a portfolio of shares.
Assuming these both increase by 10% in a year, the person with the property has netted more in capital gain,while the shareholder has gained less.That’s a big difference in just the first year – and remember, the profit’s all yours.Paul Giezekamp,director of Property Secrets,reckons that the greater leverage you can access is “probably the best thing in regards to property.” F)Different strokes for different folks
Property is a remarkably flexible investment: no matter what your financial aims are, you should be able to find an investment strategy that suits you.Common strategies include:
-Long-term capital growth
-Looking to build a retirement nest egg?Long-term increase in value is the most effective way to do this.Property has historically proven its ability to deliver capital gain provided you select the right area with correct supply / demand ratio and demographics.
G)Positive cash flow
Need cash now?Choose properties where rents outweight holding costs.Certain property products like land investments offer exceptional cashflow.This extra money can definitely assist all areas of your life.
H)Adding value
Spotted a shabby old place with potential? You can buy,subdivide or develop and create value out of thin air even through a simple paint job–unlike other asset classes.You can influence the value of your investment by renovating, developing or even altering the use,however there isn’t one thing you can possibly do to change the currency or share market.You can polish your wedding ring but the gold price still drops
I)100% control
If you invest in the share market, you typically need to hire a broker to handle your trades for you, and the value of any shareholding is reliant on market conditions and the actions of the people running that company -introducing an element of uncertainty. This is much less the case in property: once you’ve settled, you directly own the asset and you have complete control over it (assuming you can keep up the mortgage repayments, and within the bounds of planning law).That’s a hugely powerful thing, as it means that you can influence both asset worth (by adding value) and cash flow (eg by land appreciations or if you've built raising the rent)directly–something that’s nigh-on impossible to do with shares in a company.
Visit us www.ndatani.com or visit our offices at Afya center we together engange in the path to property ownership.
A)It's safe (as houses)
There’s a reason why ‘safe as houses’ is a well-known phrase: it’s true.According to survey research land has increased in value at a rate comparable to that of the share market since immemorial – an average of 11.4% per annum – despite recessions and crises. It’s done so without the volatility of the share market, too making it an all-round safer investment.
“When you factor in the return and risk associated with buying property and shares, property wins hands down,” says investor, university lecturer and author Peter Koulizos.
B)It’s easy to get started
You don’t need specialist knowledge to start investing in property:in fact,many property investors didn’t start off intending to make their fortune through property.Instead,they just bought a piece of land.It’s only after seeing the value of their land increase – and realizing how much wealth you can generate – that many investors take the leap and start proactively investing.
C)It’s easier to research than stocks and shares
Playing the stock market requires a lot of education.You have to understand how the system works,understand the complex world of trading(not least the different kinds of financial instruments used),as well as research brokers and fund managers.Once you’ve done this, you’ve then got to get to grips with the companies on the market – which involves trawling the financial press, annual reports, other company releases and so on.
Investing in property,meanwhile, is much simpler:at its most basic,you can simply jump online and start looking at properties. Admittedly, there’s more to getting property investing right than just picking a property, but a significant amount of research can be done online (and is usually either free or inexpensive) or by visiting suburbs,open houses and auctions–without having to garner reams of specialist knowledge beforehand.
D)It’s relatively easy to get finance
It may not feel like it when you’re applying for a mortgage, but lenders like property.Home loans are a major part of any bank’s business model, and lenders are more likely to lend on residential property than any other asset class –as evidenced by the fact that they will lend a higher proportion of the value (up to 95%) and at lower interest rates than any other asset class – including commercial property.This makes it a lot easier to borrow to invest in property than in any other asset class.
E)You can use leverage
Borrowing to invest in property also means you get greater access one of the oldest and most powerful tricks in the financial book: leverage.
You can borrow more when using property as security as compared to using a share portfolio.Lenders will lend up to 95% of the value of the property,whereas they may only lend up to 50 or 60% of the value of a share portfolio.This greater borrowing power allows you to benefit from the capital growth of a larger asset.
Imagine two people in the same job,on the same income, same assets and considered to be a similar risk by the bank,the person wishing to buy a house may be able to borrow some more based on their financial position whereas their workmate may only be able to borrow less to buy a portfolio of shares.
Assuming these both increase by 10% in a year, the person with the property has netted more in capital gain,while the shareholder has gained less.That’s a big difference in just the first year – and remember, the profit’s all yours.Paul Giezekamp,director of Property Secrets,reckons that the greater leverage you can access is “probably the best thing in regards to property.” F)Different strokes for different folks
Property is a remarkably flexible investment: no matter what your financial aims are, you should be able to find an investment strategy that suits you.Common strategies include:
-Long-term capital growth
-Looking to build a retirement nest egg?Long-term increase in value is the most effective way to do this.Property has historically proven its ability to deliver capital gain provided you select the right area with correct supply / demand ratio and demographics.
G)Positive cash flow
Need cash now?Choose properties where rents outweight holding costs.Certain property products like land investments offer exceptional cashflow.This extra money can definitely assist all areas of your life.
H)Adding value
Spotted a shabby old place with potential? You can buy,subdivide or develop and create value out of thin air even through a simple paint job–unlike other asset classes.You can influence the value of your investment by renovating, developing or even altering the use,however there isn’t one thing you can possibly do to change the currency or share market.You can polish your wedding ring but the gold price still drops
I)100% control
If you invest in the share market, you typically need to hire a broker to handle your trades for you, and the value of any shareholding is reliant on market conditions and the actions of the people running that company -introducing an element of uncertainty. This is much less the case in property: once you’ve settled, you directly own the asset and you have complete control over it (assuming you can keep up the mortgage repayments, and within the bounds of planning law).That’s a hugely powerful thing, as it means that you can influence both asset worth (by adding value) and cash flow (eg by land appreciations or if you've built raising the rent)directly–something that’s nigh-on impossible to do with shares in a company.
Visit us www.ndatani.com or visit our offices at Afya center we together engange in the path to property ownership.
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