Do you want to know why I love investing in positive cash flow property?
It has a little something to do with not just the fact that it can change my life for the better, but that it can change the lives of everyone around me for the better too.
Here are the following reasons why I love investing in positive cash flow property (and why I think you will love it too).
1. It generates more income for myself and my family
Positive cash flow property puts money into your pocket. It doesn’t take money out of your pocket.
I was speaking to a colleague yesterday who mentioned that she was in the market for her first investment property. She was hesitant to take the jump because it meant she would be pouring around $800/month into supporting this property. This means she is even more tied to her job AND she has less money to play with. She is effectively working harder and harder for less and less in the hope of a future pay off.
Positive cash flow gives me the cash flow now, when I need it, and actually adds to my income rather than taking away from my income. I can continue to work full time and I now have extra money coming in that I can reinvest into more property, pay off my mortgage with (someone else paying off your house for you!) or use for my own entertainment.
All the while my property is going up in value and working me towards the same final payoff that my colleague is hoping to get.
QUICK EXERCISE: Think about a property you want to purchase and imagine that it was full paid off and all the rent coming in was going into your bank account. (Eg. Paying $50o/week rent). How many properties would you need to completely replace your income?
2. It gives me control over how I get my money
This is MY FAVOURITE thing about positive cash flow property!
Now that I have 2 kids I have realised that being happy isn’t about the money. I can easily go out and get more money, all I have to do it work harder and longer hours. But I would be MISERABLE!!! I would have no time to spend with my family.
I have realised that it is not more money that I want, but more control over how I obtain my money.
When working full time you obtain your money through an even trade, time for money. But that means to earn money you have to sacrifice time. Even if you get paid $400/hour you are still sacrificing time in order to obtain money.
By having more control over where the money comes from (the positive cash flow) this gives me something very few people under 65 ever obtain. Freedom of time. Because I am no longer trading time for money my time is now free to do what I want to do with it.
Relax on a beach, solve world hunger, watch a movie, think about problems, start a business.
3. It ensures long lasting wealth, not just for myself but for my kids also
I LURVE this about property. Not only is property a fairly stable investment, but it is also a long term investment.
I look around at the stock market and there are a handful of companies that have been around for over 100 year. Then I walk along the side of the road and look at the land that people own and I know without a doubt that the land will still be there in 100 years time.
As time passes by rents tend to increase, as does land values. This pushes my investments up and actually dramatically improves my cash flow and gives me more disposable income. The longer I hold a property, more often than not, the more profitable it will become and the greater my wealth will be.
I can also pass this wealth onto my children, and them onto their children and so on and so forth. Positive cash flow property allows me to leave a legacy.
Those are the 3 reasons I love investing in positive cash flow property. Are there any reasons that you think should also be included?