Over 80% of attendees attending our Investment Academy are property investors wanting to learn how to diversify properly.
On Day-1 they get an asset allocation tool to test how diversified their assets are. At that moment, it becomes clear about the need to be more diversified. The tool also reveals if you hold too much cash which – as we know – is getting destroyed right now.
It pays to be diversified into multiple assets for 3 reasons:
1) to reduce concentration in one asset class
2) to grow your capital and income more passively and
3) to reduce taxes
Shares v Property – Pros and Cons
Aside from returns (historically similar at 8-10% pa), both asset classes have their Pros, Cons and Similarities …
Shares are passive, tax-efficient and liquid. They pay income and have capital growth.
BUT .. they may feel more volatile and you can’t add value.
Property can be levered and it may be possible to add value. It pays income and has capital growth.
BUT .. you have to deal with tenants, maintenance, mortgages, regulations and tax.
Both pay regular income and both benefit from inflation via capital growth
A Smart Way to Own Property?
REITs exist so we can own property in a passive and tax-efficient way.
The benefits of REITs are:
- Passive and hassle-free – REITs are professionally managed
- A REIT owns Commercial or Resi property (some both) and you own shares in that REIT
- You can start with 1 share (costing £5!)
- The REIT earns rents which gets passed onto you – yields range between 3-8% pa
- When owning REITs in your ISA or Pension, all your income is TAX-FREE
- REITs have grown their rents & capital values over time, just like physical property
- Right now, some REITs are valued below their NAV (i.e. BMV)
REITs are another reason to invest in shares, alongside physical property.
Learn the EXACT STEPS to find and invest in good REITs. Plus More …
- Time in the Markets always beats timing the markets
- Stay Diversified
- Minimise those leakages: Fees, Inflation, and Taxes
- Financial Markets are a great source of recurring income
- ETFs, Balanced Funds and Options achieve all the above
- Being educated helps you outperform 99% of the population
… to ensure your investments work for YOUR financial freedom (not someone else’s)
For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.
Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth. And Options to create recurring income.
– Don’t take the above as advice as it may not apply to you personally
– Your Capital is at Risk
– You may not be covered by the FSCS
– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now