Dose 5. Have your money work for you.
Do it right in Real estate
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
have dealt with in this series:
Dose 1. Real state 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.
As mentioned in dose 1
Sustaining wealth historically meant a 2 to 4% annual growth across one
portfolio (except at periods of hyperinflation).
For your money to be
working for you rather than you working for your money your investment should
have some of the below characteristics:
A good hedge against
inflation
Holds intrinsic value
A long term investment
that doesn’t need to be redeployed so often
An investment that gives
you annual returns thus the power of accumulation
An investment in something
that will be more in demand with time
Is a composite of material
and elements that will definitely cost more with time (example, commodities,
labor costs…)
An investment in something
that will be less available with time as it can’t be reproduced. The element of
scarcity.
Property investment holds
several if not all of those elements. Enjoy the ride of wealth creation.
Accumulate choices that make sense. What doesn’t seem right most probably is
not right, and this is typical with investment that promise giant returns in a
very short term or others that promise you no risk while we all know that no
investment isn’t risky.
I hope that this series
helped you.
The coming series will be
“A road towards wealth”
Series by Makram Hani ©
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