Make time your servant, not your master

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Creating wealth through property takes time, measured in decades

Article 2 of 8 in the series:  YDL Property Investment’s Eight Golden Rules of Property Investment

Just as producing a beautiful wine or quality whisky takes time, so too does reaping the benefits of property investment.

Property investment is not a get-rich-quick scheme, but rather an investment that matures over the longer term.  Article 1 in the series of 8 focuses on how important liquidity is when purchasing investment property.  Assuming that the investment is funded by a bond it is likely that the initial bond repayments will be more than the revenue generated by the rental. Over time the income becomes greater than the expenses.

Building wealth in the property market is a steady, cumulative process which is measured in decades rather than in years – and certain not in months. This Golden Rule can perhaps best be described by the following account:

The Grosvenors first acquired an area of land in London called the Five Fields, or the manor of Ebury on the western outskirts of the city when Mary Davies, heiress to this land, married Sir Thomas Grosvenor in 1677. Her grandfather had bought it for 9 000 pounds about 30 years before.

It was 48 years later, in 1725, when his two sons started developing the 100 acres of land that the family had built up as a holding stock.  The development was called Mayfair and is the most expensive land in the world today, charging the highest office and residential rents. Belgravia, next door to Mayfair, was developed around 100 years later.

Today, Grosvenor, now the Duke of Westminster, is the fourth richest man in Britain with a 7-billion pound fortune.

Property is, in essence, a conservative, steady, long-term, income investment. It is typically at the conservative end of a balanced portfolio. It is important to keep the long-term nature of property in mind when reviewing your strategy and portfolio.  Make time your servant, not your master.

As a property investor, you need to be prepared to sit out any downswings in the property market. Downswings generally present buying opportunities for property investors, as property can be purchased at lower prices than before.  One of the key markets in which YDL Property Investment is currently working is that of the United States as the economic crisis saw residential property prices fall dramatically.

The sooner you start your investments into property, the better, provided that market conditions allow for it, which right now they do. The following proverb sums it up well:  ‘The best time to have started building a property investment portfolio was twenty years ago – the second best time is today’.  If you’re ready to start today, we at YDL Property Investment would love to hear from you!

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