In a previous blog I talked about the best worst experience of my life, which was where I almost lost everything. Because of this and my lifelong study of successful people, I know what critical components are needed to make a business successful. More importantly, I’ve put these to the test and proven that they work.
For me, property is the holy grail of business, and here’s why.
It offers profitable and sustainable business growth
Successful businesses have to make a profit but sustainability is what gives you a long term future. It’s the difference between only being as good as your last deal and having a product or service that is in constant demand. For example, only doing a property development where you make some good money but you’ve got to do it all over again as opposed to buy-to-let. If you’ve got a profitable buy-to-let strategy it can keep going and provide a sustainable income stream.
It’s underpinned by appreciating assets
Property ticks this box beautifully. As well as making money on an ongoing basis, a buy-to-let property will experience capital growth over time. You can use this asset in two ways – either to refinance for future growth, or sell at a later date for a profit. Most importantly, and unlike renting business premises for example, the value of property can provide a financial cushion should you hit hard times.
You can structure a property business in a highly tax efficient way
Surprisingly, few people view property investment as a business. However, with the right business structure and help from ethical and professional tax advisors, you could limit your tax bill and maximise your profits.
You can align a property business with your personal, professional and lifestyle goals
You have to have goals in the first place to align any business with them. But when you do, you’ll be surprised how a property business can help you achieve much more than wealth:
- The income could supplement or replace a salary and provide a substantial addition to your retirement income. - Combined with capital growth, you could achieve financial freedom for you and your family. - The business could be a new challenge or business opportunity. - The long term passive income could allow you to have more free time to spend doing the things you enjoy. - The properties could provide an inheritance for your loved ones.
It can be operated from anywhere in the world
Being able to run your business from anywhere in the world is a huge benefit – whether that’s through staff or the flexibility that communication in a digital age allows. It gives us the ability to pursue other interests, on a professional or personal level, and helps to relieve the stress we may have experienced in a labour intensive, corporate world.
