The notion of investing in property options or rental properties is becoming more and more popular as people are growing tired of the ups and downs of the traditional stock market. As I have mentioned to you many times in the past, not everyone is cut out to be a property investor. However, many who attempt it will find themselves on the right path to build the wealth they so desire.
Once you have decided that you are ready to take that important step and invest in the property market, it is time for the real work to take place. Finding the most profitable properties generally takes a fair amount of time, the right connections in the market as well as extensive research.
The Time Horizon
Just like with any other investment, you need to have some sort of an idea as to how long you plan to own a 
property option before you decide if you are going to purchase it outright.
The longer you own the property, the more you are probably going to invest in maintaining and adding value to the property. If you plan to keep your property for a couple of decades, then at one point or another, you are going to need to spruce it up a little here and there as time progresses. If you are only going to hold on to the property for about five years or so, then you will not have to worry about making any repairs or improvements, unless you are attempting to increase value.
A shorter time horizon may place you at a higher risk. Even though your property will certainly increase in value over the next twenty years, it could very well lose value in the next five years, especially if you are purchasing property in a market that is overheated. In order to make up for that risk, you will need a larger potential annual return.
Small Investments Lead To Early Retirement
For several small investors, it makes more sense to invest for the long-term. You will have plenty of time to wait out any instability that may arise in the market and the income is a great way to supplement your daytime job. If you invest in enough of the right properties, being a property investor can easily become your daytime job. Imagine if all you had to do was sit around and wait for the checks to come in the mail. It is a strong possibility when you invest in the property market.
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{ 2 comments… read them below or add one }
Hi Sean,
I think to get the most out of being a property investor that you can; you need to have a mentor. You need someone to help you work out a business plan so you can structure your property investments according to your goals.
It would be awesome to be able to retire on your property investments and have the checks keep rolling in.
Capital growth does make the property market a desirable place to invest. With properties doubling every 6-10 yrs in major Australian cities it is a great place to ‘park’ your money.