From The Desk Of:
Port Elizabeth, South Africa
vs. Investing In Real Estate
"The differences between
and investing in real estate."
Why real estate?
Investing in real estate is one of the best investments you can make. If you decide to rent it out; and depending on the interest rate and length of time you finance it over, there is always a good chance that the amount of rent that you are charging can catch up with your bond instalments. This essentially means that if you need it financed, there is an asset backing your debt that is growing in value. The other advantage that is sometimes overlooked, is that a piece of real estate is a physical asset and provides you with more security - unlike stocks, which only exist as contracts.
When inflation increases or you need a raise: you just increase your rent. This is a great (and recommended!) way to generate a passive income, but there are some limits to it as well. When increasing your rent, you have to price it according to the current rental market - thus you can only increase it with so much.
The other disadvantage is the initial capital that is needed. Nowadays, it is possible to get financing for 100% of the price of the real estate. However, you still need to qualify for the bond instalments and those can hit your cash-flow quite hard - especially if you have a family to look after. Good real estate investments are expensive, but buying real estate will always be better than renting.
Why Network Marketing?
Both Network Marketing and Real Estate provide you with the potential of passive- or residual income. Real Estate provides you with more security and stability; where Network Marketing provides you with organic, exponential growth via leverage.
Your income through rental real estate can only be increased linearly, using small increments - Network Marketing allows you to exponentially grow your income and free up your time. Network Marketing also does not have the initial- and ongoing capital requirements of investing in real estate.
The bottom-line? Build a Network Marketing business to increase your income and secure it, by investing in real estate.