Everyone’s definition of wealth is different. For some people it’s about more time, more life experiences, freedom to spend freely or ability to contribute and support others. Regardless of whether your life aspirations are financial, non-financial or both, will really drive the way you develop your property investment plan. Even if you don’t care to be ‘rich’, property investing is a great way to fulfill life dreams.
So many property investors are just blindly trying to add properties into their portfolio without any thought as to why. Being rich is such a loosey goose idea. You need to be more definitive. It is important to future pace your property investments, so that you know what you are aiming for and how much is enough.
I hate using the terms right and wrong when it comes to investing. I believe there is only opportunity cost and preference. Buying off the plan can seem like an easy, low stress way to accumulate investments, but in the current market with it’s uncertainties, buying off the plan units is definitely a higher risk strategy.
So many finance professionals are quick to advocate the use of structures when it comes to property investing. In reality, the use of structures is a complex idea and there are a number of pros and cons to using them. This short video looks at one key consideration when considering if using a trust structure is right for you. Make sure you get specific advice from your accountant before committing to any trust or other structures to be sure if its right for you.