Do you realise that the smallest amount of money you will ever accumulate, strangely enough, comes from your full time job? Even then, most of that money is spent on living expenses.
That’s why, in order to build significant wealth, you need to look beyond your nine-to-five job. One good way to do that is to invest in real estate.
Many people only earn say $1.5M from work in their whole lifetime (then pay tax on it and live out of it), yet own $5M worth of assets at the end of the day.
Investing in Property as Good Time Management
Investing in property and growth assets cannot even be properly called a part time endeavour. It really takes none of your time, yet it can earn you much, much more money than the hours you put in at your “regular” job. Your wealth simply increases exponentially while you sleep.
If you think that scenario sounds too good to be true, think again. It’s simple. You use a portion of your present equity or savings to acquire a rental property and watch the rental income and tax rebates start coming in from day one.
You can use that money to pay off the loan on the property, then use the same rent to help pay off a second property, doubling your rental income overnight. As you collect more and more rents, your real estate “empire” continues to grow and grow, giving you and your family independence. Owning investment properties also frees up your time to enjoy your family, to go on holiday and to do all of those things you’ve never had time for.
You don’t need much equity or a huge deposit to get started. A modest amount of equity or savings can start you on the road to independence, wealth and financial security. Plus, unlike many paper investments, investing in property carries relatively little risk. Real estate in Australia has historically increased in value over time. Not only will the property values grow and compound over time but so will the rental incomes. Your initial asset(s) will continue to grow exponentially – and it never stops.
The book “The Millionaire Next Door” really tells the true story. Many people are worth many millions of dollars and even their friends do not know about it.
Despite that, everyone’s starting strategy is slightly different and depends on your ambition, goals, equity and overall starting financial position. Real estate investing can put you back in control of your time, while you build wealth.
Over time, you can stop working long hours and spend time doing the things you and your family enjoy. At the very least you will lose the need to compromise. Once you begin to enjoy the process, and watch the advancement over the initial years, it’s likely you will be keen to continue with investing in property throughout the rest of your life.
Rich people own time; poor people have to sell their time to collect wages.