How people utilize their time will determine how wealthy that person will become, and not just in a financial sense; having lots of money without time is just as frustrating as having a low bank balance. The challenge for most people is that they continue to exchange time for money – literally swapping minutes that turn into hours and months that turn into years of their life in return for a few dollars.
How much is your life worth? Genuinely, think about that question for a moment – yes, we all need to make a living in order to provide for ourselves and our family, but how much of their life do most people give up working a job they hate…just in order to survive?
The ideal, therefore, is to stop trading time for money and start building systems or assets that can be leveraged to automatically generate passive income (i.e. income derived from activities where you are leveraging an asset such as an online course or rental income on a property rather than swapping a chunk of time for a chunk of cash).
We are each given 24 hours a day yet how we each utilize these hours vary dramatically. Productivity and time management hacks can be helpful in determining how well we use our time, but when it comes to making money, there is a core difference between the rich and the poor — in terms of where they invest their time.
The wealthy invest their time building assets, such as properties or businesses that generate income on autopilot, meaning you can literally make money while you sleep. You end up in a fantastically liberating position to do what twenty years ago only the wealthiest of people could do…even if, today, you barely have a penny to your name. This is all thanks to the internet!
As an example, with just a smartphone, you can create an online course that sells for $97, promote it on a platform such as www.udemy.com and reap multiple rewards on your initial effort. This concept of building an asset and leveraging it, in a similar way to how pop stars get paid multiple times for a song, is the one thing that will make you rich.
In many ways the opposite of making money online would be to invest in bricks and mortar, however, when you compare the two methods of making an income there are some huge similarities – mostly linked to the aspect of building an asset, such as a blog and then leveraging this asset to create passive income (i.e. by renting it out).
Indeed, property investment is a timeless trend that remains one of the most solid ways to invest your money. Whether you do this locally or look into investing internationally (such as these properties found here) there are countless properties available, some of which are extremely affordable and highly profitable if you were to put the necessary TLC into them.
Admittedly, the property purchasing process can seem overwhelming as a first time buyer (particularly if you are buying internationally) but the process is relatively simple throughout the world and there are plenty of online tools to help you find all the information you need.
Also, something else to consider is that unlike when you are buying a house for yourself, the majority of professional fees that are paid out when purchasing a property are tax-deductible because they are a business expense.
This article is going to give some general inspiration for people dipping their toe into the idea of buying an investment property and will help you think about where to find the property and what type of property to consider buying.
Where To Buy
Many amateur property investors choose to head to an auction, thinking this will be the best place to grab a deal, and to an extent they are right – however, there’s often a reason why the property is being sold at auction rather than by a realtor. If it’s as simple as a financial issue where the bank has foreclosed on the house and their corporate policy is to always sell at auction – that’s fine – but think of buying a car at an auction. Often times, sellers will put their car through auction knowing it has some hidden faults or damage that you might not spot on a quick once over in the auction room.
Furthermore, it’s very easy to get caught up in the psychology of the situation at an auction, where you can spend a lot more than you were planning to on the basis of the competitive and almost hypnotic spiraling of the price as you battle to “win” the in-demand property. A better option, particularly if you are a newbie is to find sellers directly and negotiate with them directly. They can sometimes be a bit trickier to find than going to an estate agent that will offer a brochure, set up appointments, and so on. But in this internet age, it’s very possible to find people willing to sell their homes direct.
What to Buy
There are several factors to consider that will require significant research; such as whether the area is up and coming or if it’s going downhill fast. Aspects to consider include crime rate, the quality, and proximity of local schools, transport links, and social amenities. If you can get your hands on some insider insight, such as from the local council, and find out a major transport hub or large business park is going to be built in the next five years – that would be an obvious positive, however, if you were to find out a new sewage treatment was opening up in a few years time it would be a different story. The point is, do your homework, as whilst it might feel onerous and perhaps even costly – it will pay off in the long run.
If you’re looking at buying a property for investment purposes, then there are two main options. The first is to find a rundown property that you subsequently renovate and flip; this way, you can make anywhere between $5k and $50k within a matter of months. It’s a very popular option for people with experience in building, plumbing, electrics, and decorating; and some of the wealthiest people in your circle of friends might be tradesmen due to the huge demand for these skills. Indeed, often traders that renovate properties earn way more than learned white-collar workers, due to their ability to flip properties in this way.