I think I Invest in Properties.
Often I think where I have to invest. Can I afford to invest in a property and does my cash flow allow it? What I expect in long term? If I have the answer, then I just do it. I need to forget about trying to look at morgage, at property cycle, where the growth is, because by the time I read or heard about it, is too late, the growth has already been there. I need to be a leader.
I have seen people waiting for the right time to invest, to have low rates, to look at a mortgage calculator to see how match to borrow, etc, but who knows, when is it the right time? Let remember, how often someone would say, "You know, if I had purchased that property back then I would have made a fortune today."
One of peoples concern and my too is the debt. There is a hard time getting over the psychological aspect of debt, which some people think is a lack of education. It was important for me to differ good debt and bad debt. Bad Debt is something that is loosing value every year like car, TV, etc. Good debt is something that is going up in value over time, property, shares, stocks, etc. But is also the truth, if I knew the answer to every concern that comes up when investing, wouldn't I agree that I would have nothing to worry about? I don’t thing so.
Is hard to start investing, then confidence comes and then, investor is comfortable. Even government is helping by reducing the tax. With a property investment, the tenants are paying for almost half of the expenses. That I so, even is not hard to purchase multiple properties, because is a lot easier to get investment loan knowing you're getting rental income and tax break from the investment. So I’m saying property Investment with appropriate mortage rates is good debt, buying a car, boat, motor bike etc is not building you wealth.