Investing for beginners

Property Investment for Beginners: Go for It! 8 Reasons Why

30/09/17

Intimidated by property?

Property is one of the safest forms of investment in the world. But many investors are concerned that it’ll be confusing or boring.

Property investment for beginners doesn’t have to be complicated. And the potential benefits are staggering.

Property investment for beginners doesn’t have to be boring, tiresome or confusing! Read on to discover eight glorious reasons to go for it!

Read on below, and we’ll take a look at why you should go for it.

Earn Passive Income

Experts on wealth accumulation know the importance of passive income.

Passive income means you’re making money even while you’re not working. It can free up your time for other things. Or you can use it to double your income for the time you’re investing.

Investing in property allows you to passively make money from rent. Eventually, you could be making enough to entirely replace your day job. Or you can keep working and afford to spend that much extra.

As your portfolio grows, you can stop worrying where your money is coming from. A traditional job puts a hard cap on your income because you only have so much time. But there’s no limit on the properties you can own.

Maximum Control

Unlike some forms of investing, property gives you a lot of control.

For instance, you could lose a lot of money on the stock market with a few bad decisions. But property is a stable investment that continually pays off over time.

Property investment for beginners requires less risk. Your main risks will be at the point of purchasing the property. But even these can be reduced with careful research.

After this point, it’s up to you how much additional risk you want to take on. If you want to leave the property making money as-is, you can do so. But if you want to take the extra risk to improve the property and sell it on, then that’s also an option. You can make these decisions based on how it suits your circumstances.

Property is a Ladder

As an investment, property has no real limit.

The biggest hurdle when it comes to property investment for beginners is purchasing the first property. But once this is done, it’s quite easy to invest your profits to eventually trade up or expand your portfolio.

You might find it slow and intimidating at the start. But by the time you’re on your second and third property, you’ll know what you’re doing and you’ll have seen the benefits.

At this point, opportunities will become more obvious to you. Climbing the ladder will become easier the farther you go. Each new acquisition will help you get to the next one.

Property Grows Capital

Unlike some investments, property gains value over time in most cases.

If you’re careful with your research, you could easily find a property that’s likely to double in value within a decade. This can give you massive returns on your initial investment.

Unsafe investments could wipe out the profits you would have made. But property investment for beginners carries much lower risk. It gives you a month on month return, so you’re almost guaranteed to at least make your money back over time.

There aren’t many disasters that can take your property away from you. That means your capital is safe to sit there and grow. Even a literal disaster will be covered by your insurance.

Property is in Demand

The property market remains strong in the vast majority of places.

While house prices fluctuate, property will always be in demand. The world’s increasing population will only make this more obvious over time. Housing shortages already abound in some areas.

That means you’re unlikely to lose out by investing in property. Assuming a minimum standard of repair in a decent area, you should always find buyers or renters for your property.

This also means the market for buying new property is always open. That means a wide range of options for tailoring your investment portfolio to your circumstances.

Demand also creates a floor for the market. Major urban areas especially will always have a market for property, which limits the impact of a crash.

It’s Easy to Learn

Before the internet, it wasn’t easy to find advice on property investment for beginners.

But now the internet is full of stories, tips, and guidelines for your first investments. That means you’re much less likely to make rookie errors and waste your money.

There are also countless services that can make buying your first property easier. These can range from advice to financial support.

Unlike stocks and shares, it’s also easy to pick up what you need to know about investing in property. This means you don’t have to sink a lot of time into researching the investment.

Financial Leverage

Property is considered a safe mode of investment. That’s why leverage is such a huge benefit of property investing.

If you’re asking for a bank loan, they’ll want to know your intentions for it. If you say you’re investing in something with low security, you’re likely to be turned down. But if you’re investing in a property, it’s much more likely you’ll get the loan you need.

Lenders are more willing to lend against property than other forms of investment like a startup or stocks. This means a significant portion of the money you’re investing can come from lenders, which amplifies any returns you make.

Invest in Your Family

Investing doesn’t have to be about growing your personal income.

Investing in a property can be a way to secure something for your beneficiaries. Property makes an excellent inheritance because it’s not taxed as highly as a monetary inheritance. It also has the obvious practical advantage of potentially giving your children somewhere to live.

And if your children choose to rent out the property, they can use it to begin the same investments.

Property Investment for Beginners

Beginner investors should start out educating themselves and doing research.

As we’ve explored, the benefits of owning property are enormous. So now’s the time to find out exactly how to do it.

Be sure to follow our blog for more hints, tips, and guides about property investment.