Assets For Life
In my opinion the greatest assets for life are income producing properties. What is important is that you get into property investing in the right way from the start.
“Do you want to work hard for money or your money to work hard for you?”
Why do I believe that property is one of the greatest assets for life? When you could invest in stocks & bonds, crypto, invest in starting a business that produces summer caps or offers consultancy.
In fact, I believe you should treat property investing as a business. You should make your money when you buy and you should be investing for the long run.
Maybe you have been running a successful business providing products and services for years. You have worked hard many years in up and down markets. Now you want to be able to enjoy the fruits and not keep working hard to keep ahead. You may be considering leaving your business to the next generation in your family.
Inflation
Today you put your money in the bank at different bank rates. Maybe you don’t even think about it. The bank is the root of all financial transactions you do. You could shop around to get the best bank rates or even the thought about the hassle it is to change banks many times just makes you stay where you are. Another reason for leaving your savings in the bank could be that you are used to working with certain people at the bank and you have a good relationship with them.
Maybe you are pretty good with your economy and are good at saving. But do you know that your money gets worth less sitting in your bank account? Every year our money inflates by 2-4%. In January 2023 the UK inflation hit 8%. So your money in the bank is actually not working for you – it’s losing its value. You can buy less for it.
In the future when you want to live well from your savings, you won’t be able to buy very much because the retail prices have gone up and what you could buy for £5 now, you will have to pay £10 for in 10 years. That means you’ll soon run out of money.
“Prices rise and rise. Inflation is not on it’s way – it’s already here”
Expenses
We all have expenses and we all spend money. It could be that you earn well, but the money you earn seems to disappear down a black hole.
You have your ongoing expenses that you know you have to pay every month or every year. Rent, mortgage, utilities, insurance, car repayments, school uniforms, and other debts. Then on top of that you have other expenses like food, clothes, fun activities, club memberships, holiday trips, the newest mobile phones, repairs, etc.
Of course you have to save money by not wasting it on things that you don’t really need or think you want. Are you buying something because you really want it or because everybody else is buying it? You can make money by shopping around after the best offers. Where could you get a better interest rate on your mortgage, insurance, and find another finance company who also offers you a better interest rate?
Money “Sitting” in the Bank
You don’t have to live below your means to keep having money. You can put your money to work harder for you. Money that sits around in a bank account is not working very hard for you. It is working harder for the bank who you are borrowing the money to for free. They go out and make an interest of 8-10% on some investments and they pay you 2-3% or even nothing. You don’t have to be a genius working out that the bank is making about 5-6% profit for their work.
You could say that you are not having any hassle and no risk. You think you are keeping inflation from your savings but you are not because inflation is so high at that moment. Your money isn’t growing, but losing value instead.
Now the question is, do you want your very hard earned money to grow? Do you want to have enough money for when you retire and your income drops, because you have stopped working? As you know we live longer and longer. That’s why we need assets for life!
So another question is, will you have enough money to be able to live the life that you want? Do you like the idea of “downsizing?” In the future, do you still want to be able to eat what you want, go out when you want, go for a holiday of your choice (not where you can afford to go), etc.?
Buying assets for life — investment properties
“Change your mindset about saving money and start to think how to grow your money”
What if you could make a higher return on your money? What if you were the one who could make a 5-8% profit on your hard earned money? What if you could make it without the hassle of finding the investment and taking the risk?
What do you think about creating assets for life that will pay for your expenses from now on and into the future? What do you think about investing in an asset that you can leave to your children and grandchildren?
Let’s say you want to go on a lovely holiday each year on your own or with your family or friends. It costs £6,000. Ordinarily, you use the money on the holiday and then the money is gone. What if you could use that money and still have your money back again?
How, you might think? Well, let’s say you have £100,000 sitting in the bank at 2-3% or 0%. That makes you £2,000-£3,000. That only covers half your holiday. That means that your savings have gone down to £98,000-£97,000. What if you could have double of that? What if you could have 5-6% on your £100,000 every year? That would pay entirely for your holiday and you would still have £100,000.
You could be making that kind of return on your money if you choose to lend it to someone else that the high street bank. I can offer you this kind of return on your money with no hassle or risk to you.
Income generating assets UK Property Investing
How do I do this? Well, I’m a property investor who knows what property to buy, what price to buy at and how to buy the property. You can rest assured that you will get your money and that you will get it back after an agreed term with the interest agreed. You will have your guarantees and all agreements drawn up by a solicitor. That is what is called being an Angel investor. You lend money to someone that you can trust will repay you so you get your money backand the pot of cash agreed on top.
There are several ways it can be done. I pay your solicitor fees and you can decide that you want the interest paid every month until the end of the lending term where you get your initial i.e. £100,000 back. Or we can agree that you get a higher interest rate if you agree to be repaid by the end of the term with the initial £100,000 and the accumulated interest on top.
I ask you only, where would you get £6,000-£8,000 on your savings per year? You would still have your £100,000 and you could decide to “go again.”
I am a cash flow investor. That means that I invest in properties and I keep them and they cashflow rent every month. There is of course work involved. There is finding the right property, doing the due diligence, having the right people in place to make the whole deal run smoothly. But when the deal is over in line, then the asset starts to repay you.
This could also be an option that we could do together. If you are interested in seeing your money grow or never out of money in the long run, like me. How can we do this?
We will be investing through a joint company (SPV) in high cash flowing properties that would make us about £500 each every month. We would leverage it with a mortgage and when your £100,000 is repaid, we keep cash flowing every month. Then we can move onto the next investment.
I am the owner of Pickford Estate and I pride myself on taking away the pain for those who want to invest in properties, but don’t have time or knowledge to do this themselves.
Does this sound like you?