One of the best ways to become financially independent is to invest in property.
Why is property such a good wealth investment strategy? There are two very good reasons.
The first is that you are using other people's money to purchase an asset.
The second is that once you have the asset, you use it to generate rental income.
Sounds too good to be true, doesn't it? But it works.
Property investment means you are in control of your wealth creation.
You can build up your assets at the same time as you continue your day job.
You can do this with your partner, or own your own.
It's all up to you.
First, write down your goals and the time span you would like to give to achieving them.
Investigate the tax requirements and asset protection needed to manage your goals.
Here's a scenario you can use for wealth investment.
Use your savings as a deposit to buy a multi-family apartment house.
With all the units full, you will receive a healthy rental income.
Apart from upkeep and the usual expenses, you can use the rental income to pay off the mortgage.
Remember, now is not the time to be spending - all your energies must go into paying the mortgage.
When the mortgage is paid, you will be the owner of a wealth producing asset.
The money you formerly used to pay the mortgage now becomes income.
Many property investors will use this passive income to invest in more properties.
Because you now have a substantial fully-owned asset, investment becomes easier.
But the important thing to remember is that while this building up of assets is happening, you are not yet wealthy.
Wealth is the result of your investment strategies.
While you are accumulating, you still owe money to the bank.
If all your tenants left, you would find it very difficult to maintain your mortgage payments until you replaced those tenants.
It is very important to focus on creating wealth at this stage, not to spend rental income on things that make you feel good.
Look after your tenants.
You need them as much as they need you.
Because you are in control, you have the luxury of deciding what kind of property you want to invest in.
You may choose to specialize in a specific kind of building or maybe several different kinds.
The key is to look at the income producing potential.
Would it be better to buy a multi-unit apartment block or a single dwelling? The answer lies in the total rental income generated by the property.
Self-discipline is the key to the wealth creation process.
Are you disciplined enough to be frugal for several years while building up your asset base? Your answer to that question will tell you whether property is the right kind of wealth investment for you.