What is the best investment to make money?
Many of us have been told that the best possible investment to make, is to buy a house. What do you think? Is buying a home a good investment to make money?
Yes, simply because it naturally does increase in value over time.
No, since it’s only profitable once it’s sold.
Most investments generate regular income (profit) that the investor is able to re-invest and therefore build wealth. In other words, when investing in property you don’t necessary have to wait until the property is sold until you generate money. How?
3 ways investment properties make money
• Capital growth – If your property increases in value, you will benefit from a capital gain when you sell.
• Rental income paid by tenants.
• Tax credit (which can be paid annually, or as a credit in your regular pay check)
Family homes make money by
• Capital growth
Even though you have more ways to make money with an investment property, we don’t believe that you shouldn’t buy a home, or if you have, that it was a mistake. In fact, it may provide you with greater opportunities to further invest (if it’s done correctly.)
When you buy your own home, you cannot gain tax benefits or rental income (by tenants). These two additional sources of income (which you only get in an investment property) makes the property investment a good idea when you buy to specifically make money
Option Wealth has decades of experience helping our clients do exactly that. Paying off your mortgage with other investments while building wealth, reducing the amount of tax you have to pay and multiplying the capital growth. As they say “two heads are better than one” and in investing the same principal applies.
Contact us to find out how to invest your money wisely, or bring down the burden of your mortgage.