There are many wealth creation ideas like network marketing, shares and options trading, property development, Internet business, mainstream business and finally property investment which will be covered in this blog post. It’s true that you can create wealth from property investment and make extra provision for your pension. Simply buy a retirement home at a 50% discount, get onto the property ladder before prices rise further, find the best locations for an investment, identify the best property in a particular location and carry out due diligence before investing.
Wealth creation ideas – The 5 Critical Criteria of Property Investments
1. Decide what your End Game is – what do you really want to achieve? Capital gain, Income or Mixture of Capital Gain & Income maybe?
2. Exit Strategy – When do you want to realise your investment? Short Term – within 5 years, Medium Term – 5 to 10 years or Long Term – longer than 10 years.
3. Available Investment Funds – what money do you have to invest? Is it liquid cash available quickly, Equity release or other option?
4. Attitude to Risk & Reward
Higher Risk – normally this is often a speculative investment in an emerging market where there are unknown factors and where it is hoped one can be ahead of the pack and make high returns. The risk factor is that it might just not happen or that one of the unknowns might hit you hard! Like any gamble one must be prepared for a loss as well as a win.
Medium Risk – this is likely to have been an emerging market previously but now the risk factor will have greatly reduced as the market will have matured somewhat. The rewards might be a little lower but this is less of a gamble and more a safe investment
Low Risk – where all factors are well known. Mature markets with a good track record and current forecast of delivering acceptable investor’s profits. The risk is extremely low thus a very safe investment.
5. Stick with the fundamental rules of “Creating Real Wealth”
– Acquire assets that increase in value over time. This could be stocks and shares, a pension fund, fine art, your own company or property that you don’t labour in. This excludes a business that you own and are an essential element in. If the business runs and makes money without you then it is saleable and an asset otherwise it is a just a self employed job. Property other than the home you live in is one of the best assets on this planet as over time they have increased in value in virtually all markets.
– Use other people’s money. The best example is a mortgage on a property where the bulk of the purchase is funded by a bank or building society. This allows you to “gear up” your investment and make a profit on an amount (the house value) very much higher than on your portion of the investment (your deposit). As you can see property investment is one of the best wealth creation ideas available right now.