Which is the best investment winner? Education is key🔑
If you have missed the previous options, go back and read them.
Who wins the game?
Be honest with yourself: which of the four options below did you choose at the start?
If I gave you $100,000, what would you do with it?
Put it into a savings account
Buy one property @ 80% mortgage
Buy two properties @ maximum % mortgage
Now that you’ve seen the potential results, would you have picked differently?
Comparison of placing $100,000 into various investments after 10 years.
The winner is very clearly the person with two properties. This is why I said at the start that how you play the game makes a difference. Some people will think that a savings account is better while others will rather opt for shares. At the end of the day, your education changes the result.
Now that you understand leverage, you know to buy properties with the minimum amount of your own money and the more properties you’ve got, the better.
When I got back from Iraq in 2006, I was in this very position. I had $110,000 in the bank and needed to invest it. My then-wife’s family convinced me to go and see their financial advisor. I asked him what he would do with my money if I gave him $100,000 and you can guess what advice he gave me. He went with the shares scenario (option 2) and told me he’d double my money in 10 years.
I then showed him option 4 and what I could make by buying two investment properties. He just sat there and stared at me. I asked him why I shouldn’t go this route and he responded by telling me that he couldn’t advise me on real estate investments. His licence didn’t allow that. From that day onwards, I understood the property game. I also realised that accountants and financial advisors don’t always know best.
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