BUYING PROPERTY…

Описание: Buying a house to live in is usually not an asset, even though society tells you it is.
Here's why
When someone buys their own home, they don't buy with numbers, they buy with emotion.
They buy convenience.
They buy something they consider pretty.
They buy the area convenient to them.
They stretch themselves because it's their dream home.
That immediately breaks the first rule of investing, emotion kills returns.
Sure houses generally have statistically increased in value over time, and yours could too.
But it won't produce cash flow, it will drain money.
And the return likely won't be nearly as good as someone buying a strategic investment property specifically below market value with problems.
A property they'd consider "the worst house on the best street".
A property they increase in value more quickly through lease extensions, refurbs and extensions.
However I will admit...
When it comes to my main home in the UK, I bought it for several million.
But that's because I got to the point where I could afford to. Owning would make little financial difference to the rest of my portfolio.
But when you are starting out/ building in the earlier days, I generally tell people "to rent".
Free up your cash to put into some more active strategic investments.
#property #propertyinvestor #millionaire