By Neil Vorster
There are investment solutions your investment advisor will never tell you, and the reasons are two-fold.
Firstly, investment advisors benefit financially from advice that they give you, so the old adage applies, “Let the buyer beware” The independents give you investment solutions that pay handsome commissions, while the consultants working for the big name financial houses flog the local house brand of complicated financial plan.
Secondly, I haven’t yet met an investment advisor who invests in property or understands the dynamics of property investment and says so publicly!
Classic Investment solutions
Classic investment solutions provided by investment advisors are commonly:
- Pure Retirement annuity products—Essentially a forced savings plan where you cannot have access to your own money until retirement age. Frankly I believe retirement annuities don’t comply with the consumer protection act, in that the consumer cannot cancel the contract.
- Managed share portfolios, a vast plethora of portfolios of unit trusts, shares, funds , securities portfolios and even funds of funds – One has to blindly entrust your financial future to the projected figures on the marketing brochures.
- Structured unit trust savings plans –whereby you buy unit trusts monthly regardless of what the stock market is doing. They cite the long nature of your buying pattern as the reason that it doesn’t matter when you purchase, “it all averages out”! How rude, of course it matters when you buy!
Like the classic frog in boiling water, the general public are desensitized into accepting projected long term growth of 10 to 15 % per annum as “fantastic and safe” investments.
I don’t buy it!
Organic Growth is not unique in knowing how to invest in property, nor are they the only voice of reason out there. Thankfully many people have worked out the simple truth that investing in residential buy-to-let property offers vastly superior, inflation resistant returns on your investment.
When you invest in residential buy-to-let properties, the formula is simple.
- You buy a property in a good area
- Pay for it with mostly the bank’s money (90% or 100% of the purchase price)
- You lease the property out to a tenant
- Over time the tenant pays off your bond
- The result is wealth transfer in your direction.
Regardless of the future inflation rate, if you buy carefully, your property value will beat inflation and offer you real growth. Residential property investment offers you the opportunity of beating inflation while investing with other people’s money. Since so little of your money (classically 10% of the purchase price is all you need to invest) is invested, the returns on your investment can be truly impressive. When you do your return on investment calculations using the amount you invested, not the purchase price, the returns are astronomical!
If you want to learn how to effectively invest in property, join Organic Growth’s Premier Investment Club .
Why not join them and learn how you can do this for yourself?
Consider your investment solutions:
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