Do it right in #realestate
investment; #wealth creation at its best
Only invest in what you
know and understand: A loss in an investment you understand is safer than a
profit in one you don’t. Study the area you wish to invest in, understand
community benefits and community challenges, layouts, build quality, traffic at
peak, future prospects, future risks.
Those are all elements we
will deal with in this series:
Dose 1. Real estate a
component of every portfolio.
Dose 2. Step buying to
crunch busts and booms (Afloat in a cyclical industry)
Dose 3. Opportunities
within every part of every cycle
Dose 4. What does it
really mean to have a market with short and fast cycles (Liquid markets and why
they are the most interesting?)
Dose 5. Have your money
work for you.
Sustaining wealth
historically meant a 2 to 4% annual growth across one portfolio (except at
periods of hyperinflation).
Taking into consideration
you need to have a diversified portfolio; between all instruments and asset
classes you are comfortable to invest in; depending on your risk tolerance and
appetite:
Some of your wealth should
be in cash - earning nothing.
Some in fixed income or
very low risk instruments - earning approximately nothing.
Taking this into
consideration you will need to have other investments that will earn around 8%
annually just to sustain your wealth.
Real estate is one of
those assets that can earn you enough to sustain or grow wealth depending on
how you treat it. Real estate is one of the very few investments that pays you
a yearly income in additional to the annual growth.
Series by Makram Hani ©
Copyright Arms &McGregor International Realty. All Rights Reserved.
