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Why do you want to invest?


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Hi all, being at the start of my own property journey, I was wondering what your personal main reasons are for wanting to invest in property? Is securing long term assets or cashflow important to you? Generational wealth? Simply better return on your money compared to bank rates? 

Look forward to hopefully hearing back from some of you!

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Hiya,

I used to work in the property industry and I have a couple friends and family who are property investors. I guess I’ve got some knowledge and support behind me which I’m grateful for. My sis and I have also recently acquired a limited company with 2 BTL’s already. I’m selling my flat so will invest some of that money into buying BTL’s up North. I don’t want to work for someone else. I don’t want to live to work so it’s important for me to have long term investment + have the cash flow to live comfortably. I don’t need a luxurious lifestyle as life’s not about that for me personally, it’s about having more time to do the things I want to do and be able to spend time with my future family/kids (I don’t have any yet) without the worry of a 9-5 job getting in the way. I therefore have goals of growing the portfolio to AT LEAST 10 properties - a mix of BTL’s AND HMO’s - by the time I’m 40 (I’m 31) which I think is absolutely doable. 
 

What about you?

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Hi Rose,

Thanks for the response!

For me it's about long term investment and creating (semi) passive income for myself. I don't want to earn my money for it to just sit in a bank account and earn 0.0X% in the bank, I want my money to work hard for me. A big thing for me is family as well, I really want to be able to pass property down and create some generational wealth.

I am also now packaging BTL deals in the Midlands area to investors having gone through training over the past year or so. I want to use sourcing fees to help fund my own portfolio while helping others do the same!

Thanks!

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Everyone's goals and motivations to invest in property will be slightly different, but it's usually to provide some level of financial freedom either in retirement or to fund an early retirement. The goal timeframe will be what dictates the strategy, as if you are looking to reach a goal quicker, you will either need more capital or to put in more time/effort or to take more risks (or all three!) compared to if you have longer term goals.

Where property works best is at generating long-term wealth. Most of the returns from property will come from the capital growth rather than from rental income, and combined with the ability to use leverage, the compounding effect over time is a powerful tool.

For me, my goal was to build a portfolio that provides security to choose what I do for work and how I spend my time. I reached that goal last year where my living costs are now covered by my portfolio, which allowed me to leave full time employment and begin working for myself. This took me 10 years so it's certainly not "get-rich-quick", but if you're prepared to put in the effort and be realistic with your timeframes, property is a fantastic investment for building long-term wealth and achieving financial security. I'm passionate about the benefits that property investing can have on people's lives, so I now work independently with investors to help them build portfolios and achieve their own goals.

What are your reasons, Andrew? Have you taken time to define your goals?

Chris (www.fintentional.co.uk)

Chris Hancox

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I initially bought my first property investments as my pension.

Later when I became massively depressed by my stressful job, I quit and my focus was on cashflow. However, the capital appreciation was always there and it helped to fund more properties, leading to the multi-million residential and commercial property empire I have now.

I've been financially free for many years. My current goals are even more cashflow, capital appreciation, generational wealth and saving tax. I always focus on the long-term…buy and hold and let time do it's magic!

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