What Is Property Investment?

[orion]

After a good discussion over the last few days in another thread on here (P&I or I/O), I was thinking about what Property Investment actually means to me. In other words, I have my own definition of it, but would be interested in hearing first from others what it means to them, and why. Often we hear of all the strategies you can use eg - buy and holds (which also has lots of different 'hows'), wraps, trading, lease-options, renos, sub-dividing, options, etc etc, so this is all the 'How to' but it doesn't define the 'What'.

So, just say what it means to you and why in one sentence if possible - i.e. Property Investment to me means .....

Regards
Graeme Fowler

[Keithw]

Property Investment to me is a way to ultimately give me the freedom to do what I want, when I want, where I want & to an extent with whom I want.

What it is not about is money, but that can be a nice side effect

[Badger]

...a compulsory way to bank/save money.

[SuperDad]

Property investing to me means the use of property as a vehicle for wealth creation and/or wealth retention.

[Keithw]

"...a compulsory way to bank/save money."
"a vehicle for wealth creation and/or wealth retention."

Is there a next step or is it just the money or the wealth you are after ?
What do you want the money / wealth for ?

Do Badgers just like collecting money like Magpies like shiney things, or are they like Squirrals, collecting acorns to survive on in the winter ?

[k1w1]

....a means of investing in something over which I have the feeling of at least some control, given that I know shite-all about shares (and have no control over the actions of the companies anyway), currency-trading results cannot even be foretold with a crystal ball and gold is for tinfoil hat-wearing end-of-the-worldists.

In other words, the best of a not-so-great selection of choices.

[Badger]

Both!

...at age 18 it was a great way to save, that first property set me up to, pursue what I do now...

give me the freedom to do what I want, when I want, where I want & to an extent with whom I want.

[k1w1]

Oh, and one day, that saucy minx of a tenant of mine is going to suggest an alternative payment method.

[CJ]

a way to increase wealth using property as the vehicle.

[exnzpat]

Property Investment is hard continuous work. It never ends. The more you buy the more you worry. The more you invest the more you spend. If you fail to keep up with your properties they will outrun you and eventual they will own you.

Each invested dollar in property will return approximately 6 to 8% over the long-run. For those of you who have become investors over the last ten years in New Zealand and can mathematically show 150% plus returns on their investments today – one year from today you will wish for 8%.

For those of you who believed that property investment was an easy road to wealth – with little or no effort or work involved – are in for rude-awakening.

Lazy people do not become rich, and if they do, they don’t stay rich for long.

[tpr2]

Property Investment to me is a way of giving each of my ex wives a nice new home to live in at yesterdays dollars.


......
..just kidding

[Dunning]

almost quoting Badger

give me financial freedom to do what I want, when I want, where I want & to an extent with whom I want.

[Fingers]

My version of property investment

Using your brain and being able to spot a good deal just by looking at the numbers. A passion for houses also helps!

[atiff]

I try to use this one:

An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.

- "Security Analysis", by Benjamin Graham and David Dodd

I take "safety of principal" to mean "principal is protected against inflation", ie, that the principal grows at the rate of inflation. Any other gain is then applied to create the "adequate return". I would then assume the level of "adequate return" can vary person to person and situation to situation.

[Davo36]

Oh, and one day, that saucy minx of a tenant of mine is going to suggest an alternative payment method.

Lol, you diiirrrrttty bugger.

I agree with SuperDad:

Property investing to me means the use of property as a vehicle for wealth creation and/or wealth retention.

I see property as the only real asset class. Things like jewelry, gold, cars, appliances, clothes etc. are all just niceties. Stocks and businesses seem to be quite ethereal - in that if things change, they can lose value quite easily. Even cash in the bank is really only paper that you can one day turn into something concrete.

David