We all know investing in property is a smart move.

But we don’t all know how to do it.

That or we simply lack the confidence in ourselves to make such a large commitment.

This is understandable until we find ourselves staring down the barrel of retirement without ever chasing the dream of possessing a hugely profitable portfolio, all while being stuck with a super fund we know won’t go the distance.

If this sounds like you, we have 3 reasons why smart people buy investment properties, and why you should become one of them.

 

You’ll Have Another Source Of Income.

 

When you purchase an investment property in the right area, it’s a simple task to fill it with tenants.

When done correctly the rental income can not only pay the mortgage on the property but it can also go back into your own pocket to be saved for a rainy day.

Along with this while you’re making money in your pocket, your asset is also growing in value meaning when it comes time to sell your investment property, the profits are rather handsome…

 

Ability To Scale Your Wealth.

 

When you’re a savvy investor and you buy an investment property, you understand it’s an investment in your future.

By filling the property with tenants that cover the mortgage you find yourself in the position where you’re building equity.

Equity is an amazing thing when you know how to use it.

It’s almost like borrowing money on money that doesn’t exist but could if you wanted it to…

Smart investors understand the power of equity and use it to increase their portfolio.

And a side effect of an increased portfolio is increased worth.

 

It’s demonstrated a reliable return for the last 100 years.

 

In Australia, the average growth for a property has been at 7% for over 100 years.

Sure there are areas where property prices plummet, but smart investors know how to do the research in an area to insure themselves against this.

By doing the correct homework, smart property investors can ensure that they purchase property in an area with all the right signals.

These are the areas where smart property investors can make sure they experience a significant return on their investment in the form of both cash flow and equity. Using the equity they gain they’re able to increase their portfolio and their wealth.

If you have any other tips on why investing in property is a smart move, let us know in our comments section.

Our readers would really appreciate it.