Wow! There are plenty of reasons you would decide on investing money in property... they're all over this site!

But I've found a few reasons for investing money in property that just didn't fit in anywhere else, and that's what I'd like to talk about here.

You may decide to invest in property purely for the type of yield you will get. This generally refers to the amount of money you get from renting your investment property out. That yield is usually expressed as a percentage, particularly when you are looking to buy an investment property, so it helps to understand this when you are deciding the way you want to invest (negatively-geared, positively-geared, or neutrally-geared).

On the other hand, your preference may be for capital growth, and you won't be interested in the actual rental yield as long as you can sustain the repayments on the property. Of course, this will often mean that your property is negatively geared for the time that you own it, but the rewards can be great if you are investing during a property boom, when tens - or even hundreds - of thousands of dollars can be made in a matter of weeks or months.

It may be that you have inherited some wealth from somewhere in your family and your reason for investing money in property is that you want to put it to good use, either to retire yourself, or to help the other members of your family out in future. I'll examine a few of the options.

Mind you, if you're not quite that lucky, property is an excellent tool for wealth creation. You can create wealth using property in a multitude of techniques outlined elsewhere on this site. It just depends on your reasoning as to how you go about it!

The choice of investing money in property can also be down to the state of the economy at the time you decide to invest. It's preferable to invest in either property or shares at the bottom of the market, when values are going to rise over the time that you plan to keep an investment, but there are also ways to make money in boom times and we'll take a look at those here and elsewhere.

You might also decide to invest money in property because it's better to be investing money somewhere than nowhere at all. It's as good a reason as any!

Whatever your reasons for investing money in property, I hope you find everything here useful and that you find passion for what you are doing in this area. A wise man once said that you should do what you love, and you will always love what you do!

Return from Investing Money in Property? to Investing in Rental Property