
Consume, consume, consume – consumption of goods and services is what makes our market-based economy click. Money has to move from person to person to keep the economy going. Most of my readers can hearken back to your college days when you sat through an accounting class, sifting through all those benign terms like debits, credits and the like. I also know that a very few of you actually liked those topics and became CPA’s, financial advisors and CFP’s. Realistically, most of you turned to other interests other than subjects such as asset acquisition. If I can, I would like to ask you to recall the definition of the term “asset”. In this article, we are going to analyze that term and its meaning.
According to the investor’s dictionary, an asset is defined as any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate and other property. In our society, we have recently become focused on buying consumables vs. buying assets such as income-producing property. In order to create real wealth, a young person or couple must master the art of acquiring assets and not consuming cash and resources. Real estate is one of those durable assets that is in limited supply, which increases its value over time. My team and I counsel our clients in this area, encouraging them to invest their cash in durable long term assets such as buying income-producing properties and othger real estate.

Obviously I am focused on my clients real estate interests and when they buy properties, I profit (which I usually take my profit and buy more properties for my company and personal holdings as well). In addition, there are many other durable assets that can be added to an investment portfolio. Each has its only particular attractions, but when an investor buys properties there are some unique benefits that many other investments do not offer. For instance, when a person buys property they usually use some one else’s money, yet they have a position in the equity of that property. In fact, often it is possible to involve other silent partners to buy properties of an income-producing nature – you just act as the liaison. So you earn equity position in this manner without using any of your own money. Try that with stocks and bonds! It is much easier to buy properties this way than any other asset. Indeed when you buy properties, particularly income-producing properties it is like creating your own cash machine - your own personal ATM!
Further, buying properties as an investment will offer some unique tax advantages like no other asset. Did you ever ask yourself why the wealthiest people in the world pay fewer taxes per capita? Many of them have vast property holdings and in many cases they buy those properties with financing (not their own money). See your CPA for more detail in this area.
So to sum up... If you really want to create true wealth in your lifetime, you need to break the consumption habit, Begin now to buy properties or assets that will increase in value. Say no to things you really don't need and learn to identify the difference between a want and a need. So many people have difficulty in this area and wind up being a slave to their credit cards as a result - Don't be one of them.
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Other articles on Property Investment:
- Looking for Property Management in Round Rock?
- Investment in Texas Can Help You Retire Early!
- It's Time to Invest in Real Estate, Conservatively!
- Why Flipping Homes Can Carry Strong Liability
- Foreclosures are Always a Bargain! Yea, Right!
- Texas is a GREAT Place to Live and Invest!
- Round Rock Real Estate makes the News...
- The Tale of the Foolish Real Estate Investor
CLICK HERE to view our current Virtual Tours of properties on one of the team’s web sites.
Here are some other Buyer's Resources from Our Website: Seven steps to buying your home
Deciding how much house you can afford Making your home wish list Opting for new home construction
How can a real estate agent help me? 10 things you should ask a real estate agent
Location, Location, Location Mortgage Calculator Contact us about buying your home
And some seller's resources as well:Eight steps to selling your home
How can a real estate agent help me sell my home Practicing good seller's etiquette
How to price to sell and still make a profit Understanding the buyer Increasing your home's appeal
Mortgage Calculator Contact us about selling a property
The HBH Group/HBH Property Management
101 E. Old Settlers Blvd., Suite 190
Round Rock, TX 78664
To contact us:
Phone: 512-439-3772
Toll-Free: 877-268-1877
Fax: 512-579-4248
E-mail: info@TheHBHGroup.com
Websites: http://www.TheHBHGroup.com/
http://www.TheHBHGroup.biz/
Blogs: http://wcrestate.blogspot.com/
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