OUR FIRST ADVICE
We help you build true wealth through the most traditional means known to man… Real Estate! Don’t rely on just the Government pension in your old age. Investing can be fun and easy (not to mention highly profitable) if you have the right advice and right team behind you.
WHY INVESTING IN PROPERTIES?
One of the main attractions with investing in property is ‘Leverage’. Simply put it means; to do more work with less effort, or achieve greater results with less input. Property is basically the only asset class where any form of leverage is employed. Imagine walking into your Bank and asking them for a $400,000 Loan to buy 1,000 shares in a listed company in the stock market…not going to happen!
If your $500,000 property with 20% down increases in value by just 5% year one year (Auckland has been sitting above 10% on average), after 3 years you have made a capital gain of $78,813 which equates to a whopping return on your investment of 78.8%! Remember, your investment was only $100,000 the other $400,000 was put up by the bank. But do you have to share 80% of these profits? Of course not! You must service the loan (well your tenants do) but you get to keep the proceeds!
However, it’s not all fairy tales and roses, there are lots of things to consider and things can go wrong. When Leverage is used poorly it multiplies your losses the same way it can multiply your gains. You see just like money ‘leverage’ is neither good nor bad, it simply comes down to how it is used and managed that determines ones outcome.