90% of all millionaires earned their fortune through owning property. How can you do the same?
Take Arnold Schwarzenegger, for example. Most of us know him for his achievement as a body builder, a film star, and even a politician. But, in reality, Schwarzenegger, made a portion of his fortune in property. He arrived in the US with very little money but saved up and purchased his first apartment. He then reinvested and purchased a second and then a third and so he built up his property portfolio.
Did you know that there are more than 750,000 property millionaires in the UK, with the youngest being a 19-year-old who built a £12 million property portfolio? So, if you are thinking it is not possible or out of your reach… think again.
Of course, it’s easy to see why, for many, achieving millionaire status seems to be getting harder and harder, due to the effects of the credit crunch, changes in regulations, the fluctuating social and economic environment, and inflation.
But, despite this, when it’s done right, property remains a consistent and reliable money maker. The beauty of building wealth through property is that you don’t need ivy-league qualifications, years of top-tier experience in a prestigious firm, or a huge trust fund to get started. You simply need to be aware of a few simple rules and be prepared to take opportunities when they are presented to you.
Want to learn more about how to create wealth in property? Let’s take a closer look at building an investment portfolio and how you can make money from property.
Consider Various Investment Opportunities
When it comes to investing in property there are a number of opportunities out there, the key is to identify the best and most prosperous ones for you.
If you’re looking to build an investment portfolio from scratch, crowdfunding can allow you to invest in property with relatively little money. Investing as little as £5,000 into a wide variety of property products, crowdfunding is a secure, hands-off investment that helps your money work as hard as you do by allowing you to invest in everything from buy-to-let property through to property development projects. Investors can learn how to invest across the entire property spectrum, how to mitigate risks and what to look for before investing into property.
Of course, there are also more traditional investment options, including investing in premium-quality, low-cost shared accommodation for young professionals, buy-to-let student accommodation, and more. However, you will usually need more capital to invest initially, which isn’t always possible for those who are just starting their property portfolio.
Timing is Everything
If you want to capitalise on the property market, it’s important that you understand market cycles to ensure that you make your investment at the right time. Ultimately, the best time to buy is immediately after a crash as this means, when the market improves, you’ll be able to enjoy significant growth.
Pay Less Tax
When investing in property, it pays to invest in a manner that will be most tax efficient for you. Learn more about investing in property through an IFISA and receive tax-free returns on investment of up to 20K in the 2020/21 tax year.
Focus on Growth
The key to building an investment portfolio is to focus on growth. While it is possible to make a respectable monthly income from rental yields, the bulk of gains on property come from capital growth. With this in mind, it’s important that you position your portfolio correctly to have the best chance of growth.
For example, investing in an area with 1% higher growth than other areas will generate you much more wealth than earning a £100 rental income each month.
The Power of Compound Investing
Compound investing, and compound interest has been described by some as the 8th wonder in the world. Compound interest is a very powerful tool and when used correctly can leverage any investment portfolio.
Building a property portfolio can be tricky but is not impossible. There are many ways to build a portfolio but it takes time, hard work and dedication. The best way to invest in property is working with a partner who has done it before and can help you every step of the way.
Shojin Property Partners offer investors the opportunity to invest across the entire property spectrum with projects and risk profiles to suit your needs. From as little as £5,000, you’ll be able to diversify your property portfolio, generate a significant return on investment, and gain valuable experience investing in a wide spectrum of property projects.
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