Why has property proved to be the most effective choice?
In Australia and many other places around the world, over the past 50 years property has averaged 10% p.a. compound growth. (Carefully selected properties have averaged even greater returns). Not forgetting that investment properties also generate an income from rent.
Median priced property in Australia have averaged growing at 2 - 4% p.a. higher than inflation, making it a very solid investment.
One of the most effective ways to build riches is to accumulate a portfolio of investment properties (over the space of 7 to10 years) and then let the power of Compound Interest work to your benefit.
The main reason that property can be utilised more effectively than shares as an investment, is due to the added benefit of being able to highly leverage an investment property.
Leveraging is where you use a small portion of your own money along with a large portion of someone else's money (a bank loan) to secure an investment of a far greater value than you could have, using only you own money.
If you invested $10,000 directly into shares that were growing at 10%, then in 7.2 years they would be worth around $20,000. On the other hand if you had used that $10,000.00 as 5% deposit on a $200,000.00 property and borrowed the remaining 95% plus establishment costs. If this also grew at 10% then in 7.2 years your investment would be worth $400,000.00. Meaning that by leveraging your investment you have gained an additional $190,000.00. Compounding has an even greater power, the longer it is allowed to work. With the above example, if you were looking at a 21.6 year period, then the results are quite staggering.
The un leveraged shares would be worth $80,000 and the property $1,600,000, a differential of $1,520,000.
It is possible to borrow 100% of the purchase price of a property plus expenses by securing the deposit against your own home, so that you don't need a cash deposit.
Isn't going into debt a bad thing?
There are two types of Debt. Good Debt is where you borrow funds to secure a capitally appreciating, income-producing asset. Bad Debt is where you borrow to buy a capitally depreciating, non-income producing item such as a car, boat or holiday.
There are many different strategies for property investing, which suit different people depending on their current income or financial position. A combination of using Good Debt to buy property and then allowing Compounding to do its work - seems to be one of the most effective way of creating wealth. But this is definitely not a "Get rich quick scheme", on the contrary it is a "Get rich slowly" scheme which works most effectively over a 10 to 20 year period. It takes patience and perseverance, but after having spoken to dozens of other property investors, many of whom have become multi millionaires within the space of 10 to 15 years, I am certain that it is worthwhile.
When most people think of a website for selling products they imagine a site like Amazon. A mega site where you can buy thousands of items. They imagine a site with lots of products so that no matter what someone is looking for they can find it on the site, and of course buy it. If you think this is the most effective site for selling your product, you are dead wrong.
Countless internet marketing experts have tested over and over to determine what kind of website is the most effective in selling a product. What they have found is that far and away the most effective website for internet marketers to sell products is a one page sales letter type of website. These are commonly referred to as mini-sites.
In reality, the mini-site generally has more than one page. In addition to the sales page, there is usually a thank you page, a download page and possibly a payment page. But for practical purposes you can think of the mini-site as a one page sales letter.
Selling in this manner is called direct marketing. It has been done for years, well before there was ever an internet. I am sure you have seen many times, sales letter you receive in the mail. They are usually many pages long. They have headlines and bullet points, often a moving story about someone and many glowing testimonials from satisfied and enthusiastic customers.
Many of those direct marketing letters were very effective. Some of them you had to read all the way through just to satisfy your curiosity. Those letters really created an urge to buy.
Those direct marketing letters are the basis for the one page mini-site. Instead of sending it through the mail you post it on the internet. Instead of mailing it to a target list, you solicit targeted traffic. Why are sales letters still around and why do internet marketers use that format to market their products. Plain and simple, it is because it still works. It not only works, but is the most effective way to sell a product.
Sites that sell a myriad of products are not as effective because it presents the potential customer with too many choices. The more choices a consumer has, the less likely he or she will make a buying decision. The one page mini-site has one purpose only, to sell one product. The consumer has only two choices, to buy or not to buy. This simplicity is what makes it so effective.
The one page mini-site is the most efficient, best producing type of site to use as an internet marketer. Whether you are selling ebooks, audio courses, videos or even physical products, a mini-site is your best bet. Mini-sites will be a large part of your internet success.
Both Debra Lohrere & Ray Johnson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Debra Lohrere has sinced written about articles on various topics from Religion, SEO Search Engine Optimization and Ford. Debra Lohrere is the author of Creating Financial Security through Property Investment and How to Research Investment Propertie. Debra Lohrere's top article generates over 60500 views. to your Favourites.
Ray Johnson has sinced written about articles on various topics from Online Marketing, How to Sell on Ebay and Internet Marketing. To get great FREE tips and knowledge to build your online business, talk with Ray Johnson - Google.com No.1 Ranked Information Marketer:. Ray Johnson's top article generates over 74000 views. to your Favourites.