Many a person, when asked, "Where's best to invest my savings?" will usually reply "In property." If you then ask them if they have any investment properties, a lot of them reply "No, but I know someone who does."
So why is it that the majority of non property investor people not invest in property? What was it that prevented you from investing in property or starting the journey into this brave new world?
When I've mentioned to people that I invest in property, they say how it is a great idea and that I'm so brave or that I'm so fortunate. This always leads me to asking them why they haven't or don't invest. Some of the replies are as follows:
- I haven't any money;
- I haven't the time;
- I don't know what I'm doing;
- I'm saving up to invest next year;
- I have my kids to think about;
- It's way too risky;
- It's not for me;
- I'm happy as I am;
- It's such a gamble;
Number 3 amazed me recently, as this was from an estate agent who was showing me round a delapidated property! I try and offer a few insights as to the benefits and how you don't have to have, be, do everything to invest in property.
Most people seem to trust in savings schemes set up by the banks and government.
In 2008, Northen Rock went awry and shut its doors. People queued for days to get their money out, but there was no money to get out! The bank had lost it all. So what happened as a result? The government gave the bank our tax money to get themselves back on their feet and give us some of our money back!? Bizzare! If we don't pay our mortgage, then we get kicked out of our home - END OF!
I then explain how I saved my money into a private railway company pension (after British Rail was privatised in 1994). You would think this is a safe thing to do..... Oh no! In March 2010, the company went into liquidation, taking our pension pot with it! For 12 years I put into the pot and as a result lost, I think, about 80% of it. No government bailout there for us contributors. Nice one, thanks!
So with the two examples given I have to ask "How can investing in proerty be any riskier?" I now prefer to put my future in my own hands. If I mess it up, then I've only got one person to blame - myself.
Slightly going off track there, sorry about that! The turning point for me was in 2012 whilst sat in the front passenger seat of the works van on the way home from Ipswich, I picked up a book on the dashboard entitled "Rich Dad Poor Dad" by Robert Kiyosaki. I opened the book at a random location and read it for then next 90 minutes non stop. Now I do property!
Why do you feel people don't invest in property? What and when was your turning point?
Please do feel free to comment below.