Mark Zuckerberg owns Facebook, Instagram and Whatsapp and is a billionaire (his Net worth is over a billion USD which is mostly made up of shares in Facebook, INC). In terms of property investment, he has bought some properties near the Facebook headquarters and mashed them together to form a little Corleone-family style compound. He has also bought a large Hawaiian estate. But he does not invest in property investment or property development to make money. He is not building up a massive property portfolio of buy-to-lets like Mr Akelius and he is definitely not flipping properties at the weekend.
Some people will not benefit from investing in property. Similarly to Mark Zucks, Elon Musk, Jeff Bezos, Warren Buffet and Bill Gates all miss out on the gains that property investment and property development have to offer. Why ? Well, because their businesses are so successful that they do not care about the gains they could make in property. Their cash is better performing as shares in their own businesses. If they took some of their billions and invested it in property, there would be an opportunity cost of millions (or even billions) each year in missed gains of their companies shares.
Successful billionaire Entrepreneurs can see their own businesses make them so much gain that property investment is not worth it for them. Sure, they will buy a nice house, a holiday home and a city penthouse but in general they avoid property investment as a way of increasing their gains. And you cannot blame them. It is just plain financial common sense to spend all their time and money in the one area that makes them so much gains.
However, for employees of businesses and owners of small and medium sized businesses, property investment and development makes a lot of sense. Employees can use property investment to retire a lot earlier than their colleagues by using the power of leverage and time. They can also quit their job and start developing properties full-time. Small and business owners can invest some of their profits into property to ensure they have a nice nest-egg to fall back onto if their business goes bust.
The same can be said for other investment classes such as stocks and shares, side businesses, invests in gold, silver and precious metals. Any investments in these areas are smart moves to grow your wealth. We like property and real estate the most because you can see and touch your investments — of course we like the potential massive gains possible in stocks and shares as investments but one minute you can be told your stocks are worth millions and then the next, thousands. This does not happen in property. Sure, property prices can go down but as long as you keep renting them out for the long-term you will gain value. Whereas when companies stocks go down, it is usually terminal (think blockbuster).
Its important to remember that every individual has different financial circumstances that determine whether property investment is for them. Property development and investment is our favourite investment strategy but we recommend having other investments too.