Dose 5. Have your money work for you.
Do it right in Real estate investment; wealth creation at its best
Only invest in what you know and understand: A loss in an investment you understand is safer than a profit in one you don’t. Study the area you wish to invest in, understand community benefits and community challenges, layouts, build quality, traffic at peak, future prospects, future risks.
Those are all elements we have dealt with in this series:
Dose 1. Real state a component of every portfolio.
Dose 2. Step buying to crunch busts and booms (Afloat in a cyclical industry)
Dose 3. Opportunities within every part of every cycle
Dose 4. What does it really mean to have a market with short and fast cycles (Liquid markets and why they are the most interesting?)
Dose 5. Have your money work for you.
As mentioned in dose 1 Sustaining wealth historically meant a 2 to 4% annual growth across one portfolio (except at periods of hyperinflation).
For your money to be working for you rather than you working for your money your investment should have some of the below characteristics:
A good hedge against inflationHolds intrinsic valueA long term investment that doesn’t need to be redeployed so oftenAn investment that gives you annual returns thus the power of accumulationAn investment in something that will be more in demand with timeIs a composite of material and elements that will definitely cost more with time (example, commodities, labor costs…)An investment in something that will be less available with time as it can’t be reproduced. The element of scarcity.
Property investment holds several if not all of those elements. Enjoy the ride of wealth creation. Accumulate choices that make sense. What doesn’t seem right most probably is not right, and this is typical with investment that promise giant returns in a very short term or others that promise you no risk while we all know that no investment isn’t risky.
I hope that this series helped you.
The coming series will be “A road towards wealth”
Series by Makram Hani © Copyright Arms &McGregor International Realty. All Rights Reserved.
