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Securing Your Financial Future Takes Planning and Strategy

Using Property to Secure Your Financial Future

Over the last few centuries or so real wealth has been measured by ownership in some form of property.

It may have started off as ownership of tools or livestock, but over time real wealth was seen as land ownership. The rich owned land and the poor did not.

But does land itself secure your financial future?

Land in itself is a like a locked safe where you can place your wealth, and yes that wealth may increase, but unless there is house or building that is rented or the land is leased, then your wealth is actually under-utilised, and does not provide for your daily needs. You still need money or cashflow to live.

"To secure your financial future you need cash flow."

Inspired Finance can be one of your partners, helping with a plan and strategy to get you there!

Why is property such a fantastic investment

In Australia most people have the chance to buy some land with a house on it, and over the last 100 years we have seen the real wealth of the Australian people rise as the price of their home increased.

Now we are even smarter and real wealth can be found in many things, but we also realise that it is appreciating assets (assets that rise in value) that we want to own, not depreciating assets (assets that reduce in value over time).

Property fits within this asset class perfectly.

Although land with a house may fall in value during hard times, it is one of the most lenient investments you can make.

Why -

  • You can't actually create more land, and therefore demand has to and will continue to grow over time.
  • The demand for land will ultimately increase its value.
  • Land is permanent, unlike a company or shares in companies that may go broke.
  • You have more control over the land, unlike shares, where a board of directors control the value of the company.
  • Land is recognised for its value, which means that lenders are willing to lend you money to buy it.
  • Its one of the only investments, which can be highly leveraged (Borrow most of its costs) and therefore any rise in value means an increased return on your own money you invested.

If you are not investing in property, you have to ask yourself "why not?". As a simple exercise get out a piece of paper, and put down the pros and cons of where you are currently investing and then look at the pros and cons of investing in property.

NOTE: Everyones financial circumstances are different, and the above is provided as general advice. We always do our best for our clients, so click on the get started button above to see if we can help you.