Do You Know What You Are Doing?
It’s needless to say just how critical it is that you know what you are doing if you are running a business, performing a job, or playing sports. The same applies for property investing. You can earn good money in property if you do things right with the relevant knowledge and even with not so much experience.
Unfortunately, traditional schools do not usually teach how to run a business, how to invest (be it property, stocks or otherwise), or how to manage your money. So you need to proactively look after your own education in those fields. I can’t stress the importance of continuously learning and continuing to improve your knowledge, skills, and experience. Education is the best investment you can make! After all, do you want to earn or lose money?
The Economy And Property Investing
What role does the economy play in your journey as a property investor? This is a complex topic, but with a simple answer. You might be asking whether you can make more money during good or bad economic times?
The simple answer is that during good economic times, you can make money in property, as typically the prices will go up. Please be mindful though, that by far, the economy is not the only factor that influences prices. But you can make even more money during bad times! Why is that so? While typically prices might tend to decline, there are countless opportunities for you to snap up properties far below their valuation prices from motivated sellers.
If you are able to obtain such properties and can hold on to them until the economy improves again or prices in that area increase, or simply sell at market value again, you can book a profit. Furthermore, if you have selected the right property, you will of course additionally get a return from the rental income.
If for example you have bought property in Asia during the Asian Crisis in 1997 or during SARS in 2003 or in the US or UK during the Global Financial Crisis in 2007-2008 and held on to them for just a few short years, you might potentially have doubled or even tripled your investment.
A Recession-Proof Business
As I have just shared, it is possible to be successful as a property investor in both good and bad economic times. I was only talking about prices and rental income though. What makes property investing a real recession-proof business for you and many others is the fact that are so many different ways on how you can earn from properties. Let me share some of those with you:
- Buy below market value (instant equity)
- Fix and flip (renovate and quickly sell again)
- Buy and hold for rental yield (passive income)
- Forced appreciation (adding value)
- Change of use (e.g. commercial to residential)
- Find good deals and pass on to investors for a fee
- Project financing (loan to developers during construction)
- Give private loan to other property investors
Aren’t you excited about so many possibilities? And the list goes on and on . . .
The Property Apprentice Master, Jochen Siepmann, wants to share the wealth of his knowledge easily and effortlessly with you for FREE. Start your journey now to greater wealth through passive real estate income and capital appreciation with one, or all, of these FREE offers: