Property investing may not be for you

This is why

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I used to believe

Everybody owns property

Property is the easiest way to invest

Property is a sure bet - the value always goes up

Property income is passive and will make you rich

Now I think

Property is expensive

Property ties you down

Property requires maintenance

Owning property requires a lot of admin

Rental properties are far from passive income

Property returns are dependent on many variables

I've owned 5 properties

I have built and sold twice

I have bought and renovated twice

I have bought lived and rented out once

None of these delivered any significant wealth

My stocks made more money than all the property

Debt

The most I got was debt

Property kept me in debt for 25 years

There was always a bigger house to buy

The bigger the house the bigger the access bond

The bigger the access bond the more access to debt

Property investing is not easy

Property returns don't just happen

Don't think that by owning property you will be rich

Just because property value increases is not enough

As long as owning a property is an emotional decision

You are not investing in property

You are owning property

There's a difference

Property is like any other investment

Understand the risk
Understand the market
Understand the liquidity
Understand the tax implications
Understand the right entry and exit points
Understand how your return will be generated

Don't invest in something you don't understand

There are other options

Real Estate Investment Trust or REIT company shares
Fractional property investments - Easyproperties
Property ETFs

You don't have to own property to be invested in property

Think carefully before you commit to that purchase

Be clear about why you are buying the property

Be realistic about your expectations

Understand the full cost

There are many options for investments - choose the right one for you http://www.wealthyhealthylife.co.za/blog/learn-to-understand-investments/