many different ways that you can invest your money and so many great ways that you can

invest your money and achieve financial freedom that I wanted to talk about some of the advantages

of investing in property. Property, I believe, is a great investment vehicle, but they can

all be great investment vehicles. So what are the advantages of property over things

like shares or holding in money in cash and why should you consider investing in property.

I am Ryan McClain from PositiveCashFlowAustralia.com.au and I teach people like yourself how to find

and invest in positive cash flow properties. If you a step-by-step guide, you want me to

walk you through the process of exactly how to find positive cash flow properties, then

you need to head over to PositiveCashFlowAcademy.com. Because there I have video tutorials that

walk you through exactly how to do it. So head over to PositiveCashFlowAcademy.com right

or if you are on your mobile phone, you can type pca.im/academy and it will redirect you.

It is not that much shorter but it is little bit shorter and if you are driving and texting,

then it will make life easier for you. The advantages of investing in property, I

have 10 advantages of investing in property that I want to talk about today.

Advantage #1 is leverage. So if you go to your banker and you say, I have got a $20,000

deposit, I want to invest $100,000 in shares, can you please lend me $80,000 to invest in

the share marker, what do you think your banker is going to say. He is going to say, "Hell,

no I'm not going to do that, that's too risky. Your going to lose your money and you won't

be able to pay us back." But if you go to your banker and you say, "Look, I've got $20,000,

I found this property in a capital city for $100,000 and I want to go ahead and invest.

Can you lend me 80% of the money or $80,000 to buy this property, he will say "Ryan for

sure we can do that, let's just look over your finances, make sure you can afford it,

but I'm sure that we can work something out." By investing in property over investing in

shares or over putting in money in the bank, you can actually secure leverage, which means

your turn on investment can be high up. Let us look at a real life example of how this

would work. You have got $20,000 here to invest in shares and $20,000 here to invest in property.

With shares you just invest your money, let us say the market goes up 10%, well that means

that your share portfolio is now worth $22,000; so it is going up $2000. Now let us take that

$20,000 and leverage out banker's money to purchase a property for $100,000. Let us say

the property goes up 10% as well. Well that property is now worth $110,000. So you have

actually gained $10,000 instead of the $2000 in the share market. Now this can obviously

work in the opposite direction and you can lose more money if you invest poorly. But

you can see how leverage can help you get better returns on your investments.

Advantage #2 is stability. By investing in the property market, many people see this

as a most stable investment and that is why the banks are generally more willing to lend

you money to invest in property than they are to allow you to invest in shares. With

shares and with cash in the bank even, your asset is more liquid, which means you can

get the money out a lot faster but when you are investing in property, it is a lot of

slower process to get your money out. It is not quite as liquid but the benefit is that

the market does not tend to fluctuate as heavily as the stock market does with the huge crashes

and everything like that. Obviously, the market does depreciate in times and we have seen

that in America. I remember seeing that when my next-door neighbor purchased a property

and then sold it a year later and lost $100,000 on the property. So it does happen, but it

does tend to be more stable than the stock market for many people.

Advantage #3 is that you can generate positive cash flow from your investment property. So

this is great because it means someone else is paying off your mortgage and you are getting

money into your bank as well. So rather than investing the way most people do and invest

in a negatively __4:56____ in a hope for capital gains, you can invest in positively ______

property which generates you a cash flow return each and every week. You can then measure

that return and you might get maybe a 6%, maybe 10%, maybe 20% cash-on-cash return each

year. So that means all the cash you put in you are actually getting 20% of that back

each year plus then you have capital gains as well. So positive cash flow property can

be great because you are getting those returns straightaway and you can get capital gains

as well.

Advantage #4 is capital gains and what that means is that property could go up in value

and we can make a lot of money that way. Many investors in Australia have made their fortune

in capital gains and in growth and what they do generally use a buy and hold strategy.

So they purchase the property and as many people say properties tend to double every

7 to 10 years. So they will hold it and as the property goes up in value, then they will

increase this over time. So capital gains can be a great thing about investing in property.

We get capital gains in shares as well. So what is the benefit of capital gains, what

is the advantage over any other investment vehicle. We will first be investing in cash

and not getting capital gains, but when you are investing in stocks again, it comes back

to that leverage. We can purchase a larger asset in the property because of boring money,

then we can access more capital gains than we could potentially access in the stock market.

So that is something to consider.

Advantage #5 is that you can make improvements to your property and increase the value. I

believe it will be very hard to buy some shares and then tinker away and make those shares

more valuable. You cannot do it, but you can purchase a property that needs some __6:53____

and you can do things to increase the value of that property. When my parents were selling

their house, we got evaluation of that property of $725,000. We then went out and spend just

a $1000 on it and a couple of weeks work and later that property sold about $825,000. So

because we were able to pull that work in, we were able to get an increased price when

we sold the property and having that control of being able to make improvements and gain

that equity through adding sweat equity as well is a great advantage of property.

Advantage #6 is that you have control over your expenses. So when you are investing in

property, you have got expenses like maintenance, management phase, council rights and all of

this. So one of the great things is that you have control over many of those expenses which

leads into tax advantages.

Advantage #7, which is tax advantages. So because you have these expenses with property,

you can actually use a lot of those expenses as a tax write off and you can get appreciation

on top of that as well. So what it means is that you could actually be making money in

your property. Because of these expenses and because of depreciation, you might not even

have to pay tax on your money or you might even get a tax saving from the government

because it looks on papers if you lost money because of depreciation, but really have not

had to ____8:24____ that money in that financial year. Tax advantages in property can be great.

Advantage #8 is equity growth and as we talked about in benefit #4 is that capital gains,

but what that means is as the property goes up in value, we get what is called equity

and that is the difference between the value of the property and mortgage and that equity

is great because more often than not, we can borrow against that equity to go ahead and

buy more investment properties. So this means, we can begin to build our portfolio on the

equity that we have without using any cash out of our own pocket to pay for the deposits.

So equity becomes something that compounds on more properties you have and the more they

are going up, the more equity you have to buy more properties and so this compounding

effected equity can be a great advantage to investing in property.

Advantage #9 is having control over your property. When you invest in shares, you have no control

of how that companies run unless you buy so many shares that you get a controlling stake

in the company. But in most situations and for most investors, you will have absolutely

no say on how the companies run and you will not be able to do anything to make your investment

perform better. But when you earn an investment property, you get more control over how that

property runs, who your tenants are, who you get to manage the property and then you can

also obviously make the calls on what improvements to make on the property and you can even expand

it out and may be you will subdivide or develop the so many opportunities due to the fact

that you have control over your asset.

Advantage #10 is that they are not making any more land. So we have got all these properties

there on the market and the truth of the matter is that they are not making any more land.

The land that there is, is basically the land that they have. Unless you are in Dubai and

they are building those islands and pumping sand out of the ocean and building islands

and making new land, there is only going to be a certain amount of land. So you do your

research properly and you workout the supply and demand properly of an area, the chances

are that you are going to have a stable and a great investment. Obviously, I am never

going to guarantee that and the fact that there is a limited amount of land and the

population of Australia seems to be continue to grow and does not look like it is going

to stop, it means that properties highly likely to continue going up in value.

So today you have 10 advantages of investing in property as you can say property has some

great advantages that other investment vehicles like shares or options or cash or even businesses

do not necessarily have.

For me, my investment strategy is to build businesses and to get them to invest in real

estate and so that is how I am going about things. I love business, I love real estate,

and I think I will be doing them for the rest of my life. So I am a little bit biased, love

investing in property, love everything that it does, and I am sure there are some advantages

of shares over property, more liquid, can get you cash out easier, but I love property.

So I am always going to be one to invest in property. So until tomorrow, which is when

the next episodes comes up, stay positive. If you suck around__12:00_____ this long,

then I do suggest that you go and you check out the pros and cons of investment property.

So rather than just looking into the advantages, let us look some of the positives and let

us look at some of the negatives of investing in property and you can then decide whether

it is for you or whether you want to use another investment vehicle