One of the main reasons people invest in real estate is to achieve financial freedom. So what does it mean to achieve financial independence? Simply put, financial independence means that all your sources of passive income will be equal to or higher than your lifestyle costs. Check out my Youtube video, outlining how to calculate these costs and include them when estimating expenses. Lifestyle costs, also known as costs of living, is the money required to maintain your personal style of living, such as food, transport, utilities, personal care and other living expenses. So let’s say, for example, your living costs are $4000. Therefore you will need a passive income of $4000 or higher to achieve financial independence. Financial freedom can be acquired through rental income from your properties or other passive income sources in real estate or pensions.
The reasons why I became a real estate investor include my experience in project management. This skill allowed my creativity to flow when organizing and planning layouts, finishes and styles. I love delivering goals, and the real estate lifestyle allowed me to do this quickly, whether it was a small one-bedroom rental or a refurbishment of a three-story property. Every project is different, and it provides me with a lot of job satisfaction. I like to look at a space and see how to make it different, more significant, finishes, colors, styles and furnishings. Another thing I love about real estate investing is the time it gives me back. When I set up a property and start earning a passive income, I am a step closer to quitting my job. It also starts building and contributing to my personal wealth. It has been proven down through the decades that real estate and property appreciate in value over time. So the more properties in your portfolio, and the longer you can hold on to them, will have a positive return on your wealth.
So what are the main reasons people may not want to invest in real estate? Well, there are a few reasons. The major one is because they believe they don’t have enough money. In some places, this would be a valid reason, primarily if you’re investing in cities like Toronto, LA or New York. Real estate in those premium areas is expensive. So having enough money to start investing in those high-end properties might be out of your comfort zone. However, there are other areas where you can begin to invest; it doesn’t have to be where you live. Based on my experience, I will suggest some of the best places to invest in. It’s all included in my course.
The number two reason people may not want to invest in real estate is the fear of making costly mistakes. The way to mitigate that is by having a mentor or a coach, somebody that will alert you to the common mistakes that rookie investors make. This will save you a lot of time and money. You still will have control of your investment, but a guide will point out the pitfalls to avoid allowing you to make a better-informed decision. You can make an educated judgement by doing your homework and employing diligent research. This will lead to greater success.
The final reason why people are hesitant about investing in real estate is due to time constraints. Between family, children, work and commuting, people in today’s society have a lot of responsibilities. But if you want something I have found, you will find a way to do it if your focus and resolve is firm. Identify what you want, research the market and then take action. I am always available to offer you advice or some help, just leave a comment below, and I will answer it as soon as possible. Thank you for reading my blog, and see you next time.
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