I am a great believer in education. Not necessarily formal education, but education. It is these blocks of information you learn and pull together from various sources to create wealth.
I took my mathematical knowledge combined it with my economics degree and sprinkled it with my accountancy qualification and ended up with a 200 property portfolio!
I had no formal property education. There were no such formal training courses available. If there was I think I would have probably done that instead of my chartered accountancy.
It was my interest that drew me to property investment. I just loved the concept of rent. To break it down in simple terms I will tell you the allure rent had for me:
- inflation proof
- no effort
Rent was real cash I could spend. It was not some notional amount such as equity or paper profit. It was real money to spend.
It re-occurred on a regular basis with the regularity similar to a salary.
Its value rose with inflation so there was no risk of diminishing returns.
And this is the best bit: NO EFFORT to obtain.
So in summary:
Cash, regularly, inflation proof for no effort. NICE!
Money for nothing and your chicks for free as Dire Straits would say. Now it does sound rosy and it certainly is NOT a bed of roses as there is a bit of effort, a certain degree of risk and whole load of thinking time.
It is this thinking time that determines your success. I have spent many hours pondering whether I should do this or that when it comes to investing. This is because it is a long term investment! Long term investments require some thought.
Anyway rent is extremely seductive for the reasons I have mentioned above. Waking up, checking your bank account and seeing the rent in your bank account is a nice feeling. Seeing several rental payments coming in every day is a very very nice feeling.
So do you want rental payments hitting your bank account? You should do. It beats working!
If you would like me to help you build a portfolio read one of my books.