What Property Millionaires Do With Their Money
Hello, Samuel Leeds here. And today, I want us to talk about property millionaires. What do they do with their money, and how do they invest it?
The investing habits of wealthy people are significantly different from that of people in the middle class. One pays too much tax, the other not so much. One leverages other people's money, while the other uses their own. One invests in themselves and makes informed property decisions, and the other lets emotions or intuition guide them when buying property.
What Am I Saying Exactly?
If your income affords you a comfortable lifestyle and you have, say, £20,000, £50,000, £100,000 in the bank, in my opinion, you shouldn't just invest it in a property. And while that would be better than putting it in the bank, using that £50,000 to buy a house means you've just tied up £50,000. So if you want to go on and buy another property, what will you do? Save another £50,000? How long will that take? A year, two, maybe ten.
Here's what the financially educated wealthy people do. They take their £50,000 and put in a property that needs work done. They push the value of the property up, refinance it, and pull their money out. By doing this, they can continually reinvest their £50,000 over and over again. So that's how the super-rich individuals are buying lots of properties and monopolizing the system. And guess what, you can do it too.
Another way ordinary rich people and the ultra-wealthy differ in their approach to property investment is when the value of a house goes up, the former keeps paying the mortgage or sells the property. Their thinking is, I bought the house for £100,000, now it's worth £200,000, so I'll make £100,000. But here's the thing, you have to pay capital gains tax if you sell an asset that increases in value.
The financially literate, wealthy people choose a different approach. Instead of selling the property for profit, they refinance it and pull out their equity. They can then put the money they get to work elsewhere, preferably investing in another property. And the icing on the cake is, they don't pay tax on that money because it's not profit. It's debt, “good” debt.
Lastly, middle-income individuals tend to invest in properties near themselves, while educated, super-rich people invest in areas that give them the best return on investment (ROI). And it doesn't matter how far these places are because they don't manage the property themselves. Besides, for it to count as passive income, earning it shouldn't depend on your active involvement. So instead, they assign the responsibility of managing the property to a project manager, who's part of their power team.
There's a significant difference between how educated people and uneducated people invest. And in the same way, their wealth varies considerably. Having started with nothing, I am proud to say that at 30, I'm a multi-millionaire. And this can be your story too.
I will be running a FREE training programme called Property Millionaire Intensive, where I'll teach you how to become a property millionaire and lead the life you've always wanted. And all from scratch. But you must be willing to put in the work and be prepared to be coached.
The programme will take place in six cities, namely Cardiff, Watford, Liverpool, Newcastle, Nottingham, and Walsall, from 23rd July to 31st July. Watford has already sold out, so save yourself a spot and grab your ticket here.