There are many ways you can create wealth and all of them work and are valid. Property, shares, business, investments… each to their own. Read more about why property is so good.
Property is a fantastic vehicle for wealth creation in Australia. The Australia property market is one of the greatest markets in the world – and It’s not just because of our beautiful country.
Of all the richest and most wealth people in Australia most of them have made their money in property. It’s a staggering number, somewhere up in the 60-70 or ever 80% of total millionaires have made their money in property .Not only that, but ALL wealthy people store their wealth in property (even if they made their money in mining or business etc)
Think about it, even McDonald’s which pretends to be a restaurant business is actually a property conglomerate!
The reason that property is such a fantastic wealth creation vehicle is because it is very resilient to market trends. Of course the property market booms and busts all of the time and this is just a natural market cycle, but on the overall it keeps going up and up and up.
The main reason for this is that property is a very real and tangible asset. It’s value is intrinsic.
Stocks and shares are simply pieces of paper – well now they are bits of information in computers – and if the markets change the actual intrinsic value of the share is zero.
But with property, even if the believed market value is zero, you can still go and live in it. It will provide you shelter, you could run a business from it, you can grow food on it… the value is extremely high.
This is the main reason that property – even land – is extremely valuable and therefor a great wealth creation vehicle. It has intrinsic value that cannot be removed by someone changing their minds or by a feeling of fear in the collective market.