Why Property is the Perfect Business-Part 2
Jim J Davidson January 7, 2022
Welcome to the second episode of our property business series. In this video, I will discuss why property development is a fantastic business opportunity. Let's dive into why property development offers significant potential for...
Introduction
Welcome to the second episode of our property business series. In this video, I will discuss why property development is a fantastic business opportunity. If you're new to the channel, don't forget to subscribe and hit the notification bell so you won't miss any future episodes. Let's dive into why property development offers significant potential for building valuable assets and generating substantial income.
Understanding Property as a Physical Asset
Property is a tangible asset that we will always need. Whether it's residential or commercial, property is a universal asset that retains its value, even during challenging economic circumstances. Unlike other forms of investments, property's physical nature provides a sense of stability and long-term value.
Comparing Property and Stock Market Investment
When considering investment options, people often weigh the merits of the property market against the stock market. Some investors with significant holdings in the stock market might express reluctance towards property investments due to liquidity concerns. However, I've found that property, especially when held for the long term, can outperform stocks in terms of stability and growth.
Personal Experience with Property Investment
Drawing from my personal experience, I've witnessed the power of property investment in preserving and growing wealth. During the 2008 financial crisis, while shares in the stock market plummeted, the property I had invested in experienced substantial capital appreciation. Property's ability to withstand economic downturns makes it a compelling option for building wealth.
Addressing the Housing Shortfall
The increasing demand for homes and commercial spaces due to changing demographics presents property developers with numerous opportunities. Despite government targets, the UK continues to face a shortfall of homes, creating a need for property developers to step in and bridge the gap.
The Role of Commercial Property
Commercial properties also play a vital role in meeting society's needs. While some people may choose to work from home, many professions require dedicated commercial spaces like factories, shops, and offices. The demand for commercial properties remains strong and will continue to do so as businesses thrive.
Leveraging Property Investment
One of the significant advantages of property investment is the potential to leverage your funds. Unlike the stock market, where your investment is limited to the amount you possess, property allows you to borrow against your investment, enabling you to acquire more valuable assets.
Protection Against Inflation
Property is an excellent hedge against inflation. As prices rise, property values also tend to increase, providing investors with a safeguard against the eroding effects of inflation. Holding physical assets like property can preserve your wealth over the long term.
Property's Dual Income and Capital Appreciation
Property offers the potential for dual income streams. While rental income provides a regular cash flow, capital appreciation ensures the asset's value increases over time. This combination of income and capital growth makes property an attractive investment choice.
The Exciting World of Property Development
As a property developer, I see vast opportunities in land development and property development. Land development, in particular, offers the potential for significant profits. Understanding the mechanics of the land business and timing your land acquisitions are vital for building real wealth.
The Exciting World of Property Development
In conclusion, property development presents a compelling business opportunity due to its stability, inflation protection, and potential for substantial income and capital appreciation. For existing property investors, exploring property development offers a path to creating valuable assets and securing their investments further. In the next episode, we will discuss the upcoming property crash and how to navigate potential challenges. If you're interested in property development, join our free training by registering through this link.
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