Property Investing in The 21st Century

Property is almost invariably a good investment, because land is all but guaranteed to go up in value. Even the USA’s housing crisis last year has not disproved this. Yet, smart property investment will earn you hundreds of thousands more annually than buying property thoughtlessly. When you buy and own property, you must constantly think about how you can maximize its wealth creation–i.e. how you can maximize the money it generates for you.

Tip: Land, not what’s built on it, goes up in value

When you’re buying property, remember that while land often goes up in value without you doing anything and what you build on it generally depreciates. Buildings do not go up in value; indeed, they depreciate as they get older and more run-down, and require maintenance from you to prevent this (or at least slow it down).

Buildings do, of course, create wealth for you when you rent them out. Yet, only land will reliably increase the total value of the property over time.

Consider Location for Optimal Wealth Creation

The quickest way to start earning money from your property right away is by renting it out. There is a market for rental houses and duplexes just about anywhere and location is key. You can get great results on rental houses, especially ones that are located close to busy areas filled with jobs. Thus, when buying property, research cities and neighbourhoods where jobs and populations appear to be going up and that will mean you’re more likely to get more renters.

A great location equates to your property being on the way to becoming a source of automatic wealth creation.

Tip: Don’t invest in property that’s so expensive that you won’t be able to charge affordable rent for the average person living in the neighbourhood your property is in.

Written by Clint Maher - 21st Century Academy
Complete Wealth Education P/L © 2008