We have met so many successful business owners who, after making good money from their business, recklessly invested in areas they don’t understand and unfortunately changed their lives for the worse. Business owners should be very careful not to make reckless investments. Just because you are successful in your business, unless it’s finance and investment business, you need to be very careful when playing in any unfamiliar field such as investing.
We find the most enviable inter-generational businesses are, like the Melbourne based Pelligra Group, which have stable rental income from residential and/or commercial properties. The characteristics and advantages of real estate makes the asset class truly intergenerational.
- Rental income from properties is relatively stable in terms of cash flow and relatively easy to manage, providing substantial passive income.
- Real estate is immovable, it can’t be stolen or easily damaged. Unlike shares that can plummet to zero, real estate, at worst, will still retain some value as immovable property.
- In addition to the above points, the permanent property rights in Australia make real estate the most suitable asset for intergenerational inheritance.
However, unlike the past 20 years, buying properties (both residential and commercial) requires more professional planning and selection in the future, with the key factor being the study of population trends and supply-demand relationships.
Click below to find out how Formation Property can help you build an enviable inter-generational asset/business.
