Wealth building 101: explaining property investment with Maven Capital Group
Everyone starts somewhere, and when it comes to investments, being clued up on how everything works can help ensure you're on the right path. However, for many people coming to property investment for the first time, finding basic information and guidance can be difficult. At Maven Capital Group, we're committed to all-inclusive investing. That means making sure everyone has all the facts to make the best decision for their personal needs.
If you've ever wondered how real estate investment works, how long it lasts, or even how much you should invest, we've covered the 101 of what you need to know:
What is real estate investment?
Property investment itself is self-explanatory when you're doing it all yourself. But what can be confusing is the distinction between being a hands-on investor or a hands-off investor using a real estate investment company. That company acts as the middle ground between you and the properties. Your investment still goes directly into the real estate purchase without any of the extra management and care to worry about.
How long does property investment last?
If you're investing solo, you own your property for as long as you want to own it. With a property management company, you're investing in a property that builds wealth and adds value over a period of time. A typical term is five to seven years, following which the property is either sold or refinanced, and your investment is released back to you.
How much money do I need to invest?
One of our most-asked questions is how much you need to get into investment. The answer is: it varies. There's no hard and fast rule for investment that says you must have X amount before you can get into wealth building. Instead, the best course of action to start in property investment is speaking to a company to determine if they are the right fit for you and the funds you have available.
Do I need to buy the whole property?
Another concern for many would-be investors is the possibility of their investment funds and the cost of the property not adding up. The benefit of working with a real estate investment service is you don't need the whole $2 million in your pocket to invest. Instead, you can contribute a specific amount to the total purchase of a property. Even if you start small, building a great relationship with a real estate investment company can provide even more opportunities further down the line.
How do I make money from real estate investment?
The big question: how exactly does real estate investment make you money? You build wealth in two ways. First is through the interest you receive on your investment, which is gathered through the building's income. The second is through the sale or refinancing of the property at the end of the term. With the right property and the right company, it's easy to build wealth without ever lifting a finger.
Interested in learning more? Get in touch with our team today to discuss whether we're the right fit to get you started in hands-off property investment.