Getting Your Finances Under Control. What To Consider When Delving Into The World Of Mortgages

Why Property Represents The Best Investment For You

If you’ve been developing quite the nest egg for the past few years, or months – it might be time to let that money spread its wings and go to work for you.

We spoke about savings and how to go about collecting a good amount of money for your future, so please refer to this article if you need help starting out:

“Too many people misjudge the importance of a thorough budget plan. Indeed, many just consider that creating a budget is an activity that is reserved for companies or affluent individuals. In truth, budgeting every dollar that you receive and spend allows you to maximize your savings and reduce your expenses. So, there is nothing wrong with sitting down and planning your costs and earnings for the week, the month or the entire year. As you do, you need to make sure to include some essential rules to your household and lifestyle to actively try to reduce the expenses column in your budget! Spending less is, after all, at the core of every budget.”

Despite what your bank might tell you, sometimes leaving your money in a savings account might make it a slave to poor interest rates. Savings accounts are amazing things, but your money can do so much more than sit around and earn a dollar a year. You’ve done all the hard work in building a good pool of money, so it’s time to see how hard your money can work for you. Investing is the job your money has, and your role is to inject your capital into a safe workplace.

There are plenty of choices for your investment. You could choose to invest in the stock market and buy the shares of companies. You might want nothing to do with the management of your cash and trust it in the hands of a responsible fund management company who can invest your money for you in a number of sources. You could invest in property and real estate.

Love them or hate them, some of the most successful people on the planet have invested heavily into property, and this has paid some serious dividends for them. While you might not be constructing hotels anytime soon, everyone has to start off somewhere, right?


Property represents the smartest investment of all, especially to a beginner. Real estate investment is a great investment option for you. It can produce a continuous income stream, and the value of the property can rise in value over the course of time. Property investment is a bit different from other options of investment as you will need to spend money on an ongoing basis to provide care and maintenance for your property, so it pleases the tenants you are renting it to – you’ll also need to ensure your building is up to local codes before renting out as well.

With real estate investment, it’s key to begin small. Real small – as in letting out an apartments for rent or even a room in your current household. This is key as it will teach you a lot about investment without no huge risk to yourself and money. Budgeting is an important factor as you need to make sure you can cover the mortgage of the property and live before you factor in the payments of rent from your tenant. Take it easy and gradually grow your property portfolio over a number of years and you’ll find it gets easier with time and experience.

So why is property investment the right choice for you? Well you get leverage and you can build wealth quite quickly – take it from Ian Hosking Richards of the Rocket Property Group:

“For example, if I purchase a property for $400,000 I can put down a 10% deposit and borrow 90% from the bank.  If that property increases in value by 10% I have made $40,000, because I have only contributed 10% of the purchase price but I get 100% of the growth,” he explains. “So if it goes up in value by 10% in the first year I have effectively received a 100% return on my initial deposit.  And if the original deposit and other buying costs came from my existing equity, it means that I have borrowed the full cost and do not need to put any of my own cash in, but still get 100% of the growth.  I would aim to purchase a property that has great potential for growth and pays for itself even on high borrowings, so for me, it is hard to imagine any other investment that is more attractive.”

Real estate investment also gives you a good deal of control, and with money, that’s important for peace of mind. You control where and how you buy and when you move on from the property with a sale. The property market can suffer drops, but it’s not like the stocks where an entire company can collapse and dissolve – your property isn’t going anywhere unless there’s an earthquake and there will always be a demand for housing. It’s true that values can drop, but these aren’t real losses unless the property is sold. Investments like property can be sustained despite price drops until they bounce back.

Unlike other investments classes, property offers you with many options in terms of growing the value and income on your property. You can also control where you buy, how you buy and when to sell. It’s also quite simple despite the heaps of paperwork you might be given at the point of purchase. The investment process involved in real estate is extremely simple, and there are no hidden, or complicated steps involve in your purchase. You can also apply due diligence and inspect sites and properties so you can lower the risk involved.

Legendary Property

While you should look to invest in property, pay attention to other aspects as well – property is best, but there’s nothing better than a portfolio that is safe, secure and diversified across numerous options. Invest your money and see where it will take you!