Why do you Invest in Property?

Discussion in 'Investor Psychology' started by Sonamic, 29th Apr, 2015.

  1. jerrybee

    jerrybee Member

    Joined:
    1st Aug, 2013
    Messages:
    1,182
    Location:
    melbourne
    Lifestyle wise - because I want freedom from the 9-5.

    Investment wise - because financing is cheaper than a margin loan.
     
  2. daniellee

    daniellee Member

    Joined:
    23rd May, 2007
    Messages:
    181
    Location:
    Singapore, Singapore
    Why do you Invest in Property?
    I dabbled in shared and could not handle the volatility. Bailed with my shirt still on.

    What made you start?
    Wanted more options to life than working a day job and hopeing for a next retirement fund at the end of 40 years.

    Why do you keep going?
    Really enjoy the passive nature of the investment with minimum intervention on my part. The low volatility (Where we have bought well) suits my character.

    Daniel
     
  3. perthguy

    perthguy Member

    Joined:
    7th Jan, 2014
    Messages:
    1,869
    Location:
    Perth
    1. finding bargains with potential that other people can't see
    2. renovating to improve the value and rental return. Myself and my investment partner do most of the work ourselves because we like (most of) it and are good at it.
    3. buying houses with development potential (either retain and build or demolish and build)
    4. the concept of taking something not worth a lot and increasing the value through renovations or building additional houses.

    For me, it has never been just about the money. It is a lifestyle choice for myself and my investment partner to invest our money this way.
     
  4. LeoT

    LeoT Member

    Joined:
    31st Aug, 2014
    Messages:
    887
    Location:
    Sydney, NSW
    Because a staggering amount of the world's multimillionaires and billionaires either made their money in real estate and/or hold a large amount of their money in real estate.

    That tells you real estate is an outstanding vehicle to building and more importantly preserving wealth.

    Leo
     
  5. Morgs

    Morgs Member

    Joined:
    18th Sep, 2006
    Messages:
    66
    Location:
    Sydney
    Aside from buying & selling businesses (does anyone have access to an enormous bank of capital from day one!?) what other transaction is as highly leveraged as property? And in turn, one you can add value to?

    Makes sense that if you're into active investing property is a great outlet!
     
  6. LeoT

    LeoT Member

    Joined:
    31st Aug, 2014
    Messages:
    887
    Location:
    Sydney, NSW
    Exactly Morgs, couldnt agree more. Not only does proeprty alow for great leveraging ability (easier than leveraging in other asset classes) but it allows for scope to control and improve the value of an asset. In many regards the property market is like a poker game. Those with greater knowledge, experience and skill can beat other players of lesser ability making great gains.
    Leo
     
  7. Tyrones

    Tyrones Member

    Joined:
    26th May, 2015
    Messages:
    17
    Location:
    Sydney, NSW
    My why is to buy property to generate capital growth, so I can use those funds to purchase a PPOR in Sydney in the next 2-3 years for my family and I to live in.

    I also want the portfolio to generate 150K of "passive income" to allow me to choose to work. (I love my job, so I won't be leaving that anytime soon).
     
  8. LeoT

    LeoT Member

    Joined:
    31st Aug, 2014
    Messages:
    887
    Location:
    Sydney, NSW
    Nice goal there :) Get ready for a battle of all battles to get there. Your age is on your side though mate.

    Well done.
     
  9. C Stewart

    C Stewart Member

    Joined:
    15th May, 2014
    Messages:
    71
    Location:
    Canberra
    Awesome point, property is an easy way to invest in a highly leveraged manner if thats what your strategy is.
     
  10. HomeBuyAU

    HomeBuyAU *

    Joined:
    28th Apr, 2009
    Messages:
    786
    Location:
    Living in NSW
    I like the lifestyle it provides from researching to renovating.