There are plenty of great reasons to build a property investment business.
Here are just a few of the most compelling ones.
This is one of the most compelling and attractive reasons to invest in property.
From a very young age, we are conditioned to be good students, who work hard and follow the rules. We are taught to operate within a framework, in which tasks are set for us and we get rewarded for following instructions and completing those tasks to a high standard.
Whilst we should all take pride in our amazing educational system, we must also be acutely aware of the threat it poses to our financial prospects and be careful not to fall blindly into the employment trap.
It is almost hard wired into our DNA that we should study hard, so that we can obtain a secure job, at a reputable company, with great benefits and opportunities for progression. Good students make for good employees.
Whilst a secure job with a great company is obviously preferable to being unemployed and thus unable to provide for yourself and your family; it comes with some major limitations and certainly doesn't tick the financial freedom box.
Let's consider some (but not all) of these limitations:
As an employee, you are dependent on your employers for so much and in return for perceived security, you are sacrificing your own freedoms, so that they and the government can reap the rewards of your labour.
Do not despair however, there is a far better and more powerful way of doing things.
By building a property investment business, you can reclaim control of your life and finances. Let's consider how many of the limitations listed above, you will be able to remove by transitioning yourself away from salaried employment and into business ownership:
Financial Freedom can never truly be obtained, whilst working for someone else. It can supplement your efforts to build a profitable property investment business however, as your earnings can be used as seed capital to acquire new income producing assets. Always stay focussed on your big picture goals though and consider salaried employment as a means to an end, rather than an end in itself. With that in mind, if you learn skills whilst working for others, which will prove valuable when building your own business, so much the better.
What would happen to you and your family, if you were unable to work for an extended period of time?
You may well be entitled to certain benefits, as part of your employment contract, but will these support you indefinitely?
Also ask yourself how valuable those benefits truly are? Perhaps you have a company car, medical insurance and 25 days paid holiday a year. Upon consideration you may discover that you could enjoy those same benefits for £250-£500 per month, if you paid for them yourself. In a worse case scenario, you could easily generate £500 per month in profit from a single property in your portfolio, which could be used to pay for these items, so that you can enjoy the benefits without ceding control of your life to your employer and the government.
The bottom line is that if you derive either all or the majority of your income, from your own labour, you will face a serious challenge if you're no longer able to work for an extended period of time.
If you build up a decent portfolio of incoming producing assets however, you will continue to receive an income each month, even if you're unable to work.
To my mind, the true definition of wealth is being able to survive for an indefinite period of time, without having to work.
Knowing that you will be able to continue supporting yourself and your family, in the event that you were no longer able to work, is something that should give you great comfort and a strong feeling of security.
Focus on building your own financial fortress, on your terms and in a way that is not dependent on any 3rd parties.
Financial independence constitutes strength and security. This is something that a property investment business can give you.
People often use the term "Passive Income" in connection with property investment.
In reality, this is rather a misleading term, which in this context is better phrased as "Scaleable Income".
It is important to remember that you're building a business. Businesses require management, which by necessity means there is work to be done and that the income derived from the business is not passive.
In all probability, when you start building your property investment business, you will be on the front lines yourself and working extremely hard to get the business off the ground. Amongst other things, you will need to think about:
Whilst this may seem daunting and overwhelming, the wonderful thing about building a great business with solid foundations, is that you can derive a highly scaleable income from it.
As your businesses starts to grow and produces increasing levels of profit, both in terms of capital gain and monthly cash flow, you will be able to re-invest those profits back into your business, to fund further growth and also pay for a team to run your business for you.
In this way, you can work your way towards a point where other people are growing and managing your business for you, so that you're able to enjoy increasing levels of income each year without doing any extra work. In fact, the larger and more profitable your business becomes, the more freedom you can enjoy, as you will be able to pay great people to run your business for you, in a way that requires ever decreasing levels of input from you.