Create Wealth In Real Estate

If you'd like to build wealth with property investments, you're in good company. Real Estate is one of the best investment vehicles, and probably the best asset class available, for wealth generation purposes. Take a look at the 'Forbes 400 Richest Americans', or Australia's 'BRW Rich 200 List', or whichever list is available in your country, and look to see where the majority of those on the list made their fortunes.

Real Estate will likely stand side by side with Business as the vehicles with which more people created their wealth than any other. Just ask Australia's Wealth Coach Hans Jakobi. Entertainers and sports people may often claim the headlines of the newspapers, but in reality they really only account for a very small percentage of self-made millionaires.

So what makes investment property stand out above all the other asset classes? There are 4 primary factors to investment property that make it a unique asset class for wealth creation. These are:

1. The Leverage you can achieve when purchasing investment property. Leverage relates to the proportion of the purchase price that banks are usually prepared to lend against investment property purchases, typically 80% loan to value ratio, but this can go higher. Leverage adds power to your investing because you can put a 20% deposit into a property, and if it increases by 10% in value within the first 12 months, you will have actually created a 50% return on your invested money.

2. The demand for property: everybody needs a roof over their head

3. The limited supply factor for property. Unlike condominiums or apartments, property with a land component has a limited supply factor. Developers can always add new high rise developments to dilute the supply of apartments in a given area, but they cannot dilute the supply of land available.

4. The price appreciation that occurs on property. This can be due to overall inflation in the economy, growth in the economy over time, or simply demand in an area of limited supply.

We expand on each of these 4 elements in detail in our article on how to generate wealth with real estate, and reveal in detail the 4 elements that determine the price appreciation of investment property. It is this price appreciation, coupled with the high degree of leverage which one can achieve when purchasing investment property, that makes it such an outstanding asset class for wealth building.

Don't miss out on also checking out the companion article about selecting high growth investment property. Applying the right selection criteria on the investments you make will have an enourmous bearing on the investment returns that you will attain over time. There are evaluation programs that number crunch potential real estate investments as you would do with stock market investments. The Posh Property Program is a fine example of one of these types of programs, and includes both analysis and management components.

You can also access numerous Real Estate investment training courses in the Success University member's area, under the Elective Courses > Real Estate category. These courses comes from renowed experts such as Robert Allen, William Bronchick, Loral Langemeier and Claude Diamond. You can obtain a 14 Trial Access to Success University for only $2, and this is donated to a charity to feed children in need. Check out the courses available there, and then you can either choose to cancel within the 14 days, or to retain your Success University membership beyond the initial trial period.

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