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  • Damon Wiseman

Why Property is an Amazing Investment!

Updated: May 10, 2021



property investment

Have you ever stopped and thought why most rich people own some form of real estate? A survey conducted in America reviled that 77% of millionaire investors own real estate. Here are a few points I’ve thought of about why property is such an amazing investment vehicle:


Capital appreciation

If you are buying a property for buy to let purposes its truly difficult to go wrong. According to property data house prices have rose a tremendous £83,926.00 across the UK over a 10-year period showing a growth of 50% in total, that’s an average growth of 5% each year. This beats the average yearly UK inflation rate which is 2%. The average interest rate you can get from having money in the bank is 1.14%, that means your capital will more than likely weaken over time if left in the bank and strengthen if left in houses.


Vehicle for financial freedom

Despite capital appreciation, property benefits from another amazing thing called rent. Rent is money you don’t have to work hard for and if you get enough of it, you can consider yourself financially free meaning you don’t have to work another day in your life if you didn’t want to. Does that sound amazing or what? To me, rent means more time for family and holidays, less financial stress and more time to live the life I want. I currently own three high cash flowing properties and I already consider myself financially free, it’s an amazing and liberating feeling being financially free and I encourage everyone that asks me about property to get out their comfort zone and work towards financial freedom. There are by the way other methods of becoming financially free, I just truly believe property is the easiest and best vehicle out there for it.



You need little/ no money to start

One of the real estate myths which I believed up until I left university with a BSc Hons degree in real estate is that you need tons of money to get started in real estate. For this reason, I put off investing in real estate for the future when I was rich- WRONG!!! I thankfully read a book called buy low rent high by Samuel Leeds which changed my perspective on investing in real estate which university really didn’t teach me. I have since gone on to learn about other methods where you really don’t need a lot of money/ no money at all to start investing your time and making money out of property.



One effective method of getting started is rent to rents- this is basically where you rent out a property from a landlord then list it on Airbnb as serviced accommodation or turn it into a House of Multiple Occupancy and rent it out for more money and take the profits at the end of the month. I’ve recently secured my first rent to serviced accommodation deal in Manchester and I am looking to achieve 150 – 250% return on investment (ROI) all I’ve had to pay for is the furniture, decoration, deposit and the first month’s rent. I have heard of other investors securing these types of deals with no money down, so it is possible.


Another way to get started is to start property deal sourcing, this is where you find a property with amazing potential, negotiate the price where the figures work and pass the deal onto an investor for a fee. I myself source property deals for investors who are too far away, too busy or inexperienced and don’t know where to start. My investors pay on average £2500 per deal (for the smaller deals). There is a lot of legislation you have to comply with to source property deals so best start off by speaking to an established property deal sourcer and ask them how you could get started.


Lease option agreements are one of the harder deals to secure but generally means you can take control of a property with all the benefits that come with it for little or no money at all and purchase it much later on in the future. This is one type of deal I myself am yet to secure and there are few and far between. You really have to know what you’re doing and need the right training to be able to find and secure these types of deals.



Conclusion

If you had to close your eyes and click on a property listed in Rightmove which is within your budget and go ahead and buy it, statistics show that your money would be better off there than sitting in a bank. If you have money but don’t know where to start with property investing why not use a property deal sourcer to find one for you? This is how I purchased my first property and I learnt a whole lot about the process, from this I went on to buy my second and third myself. I’d advise anyone who hasn’t had the right training or doesn’t have the time to look to use a property deal sourcer. However, there are a lot of people who source property deals out there that don’t sell sound deals and give you false hope. Always do background research on deal sourcers and ask:

1. For their Property Redress Scheme (PRS) number

2. Professional Indemnity Insurance number

3. Their website details – check their compliance section

4. What type of training / education they’ve had and what’s their property background?

5. If they own property themselves – check they are buying what they are selling


Thank you for reading my blog and getting to the end. If you have any questions visit my main site, either myself or one of my trusted team members will gladly assist you on your property journey.

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