There is money to be made in buying a property, renovating it, then selling it or renting it out. Using someone else’s rental payments to settle your mortgage. Using the equity in your first property to finance another property.
But only if you know what you are doing. Property can also drain your cash when you need to dig deep to cover unexpected repairs, or when you have no tenant but still need to cover the mortgage. Property prices go down as well as up. So do interest rates.
Back in the 1970s, Arnold Schwarzenegger took advantage of the decade’s high interest rates and invested heavily in property. Well done Arnold.
But twenty years later, along with Sylvester Stallone and Bruce Willis, he threw cash into the bottomless pit that was Planet Hollywood. The chain grew to contain 95 restaurants, then went bankrupt twice after drowning in huge debts.
Hasta la vista, baby.
Houses usually retain their value over time. Cars, not so much.
In fact, cars lose value as soon as you drive them off the showroom floor.
This is the asset category most likely to hold people back from their financial goals, purely because of the ego factor.
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Stop living from salary to salary. Achieve Financial Independence. Retire Early. Join the FIRE movement igniting the world.
Catch me at Profound Books’ Book Fair on 22/10/22 – bit.ly/BurningEvents
Follow these weekly posts for solid advice on how to escape the rat race, covering material contained in Hard Money.
This is no get-rich-quick scheme. It won’t be easy. That’s why it’s called Hard Money.
Work while they sleep. Learn while they party. Save while they spend. Then live like they dream.
Anyone in Johannesburg who would like a signed copy (of any of my books, or Shorty’s Poems) can have one delivered to their door by Big Bad Wolf Motorcycle Maniac Deliveries. No charge for delivery.
Or have them delivered anywhere in South Africa via Bakgat Books. https://bakgatbooks.co.za/all-stores/burning-books/
Also available in Edenvale from Inner Journeys bookstore.
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Or from Profound Books in Bramley.
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And they’ll always be available on Amazon.
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