SHOULD YOU QUIT YOUR DAY JOB TO START PROPERTY INVESTING?
If you are wondering whether you should keep working in parallel to your investing, or whether you should quit your job to focus on property. Income is usually the deciding factor.
According to Nathan, it is better to keep earning an active income through work, so you can use it to create a passive income through property investing.
WEIGHING UP WORK AGAINST PROPERTY
Nathan says, when he started investing in properties, he worked hard in order to earn as much income as he could. He knew that bigger payslips would get him finance in order to invest in property.
He worked to protect this until the day he realized his payslip didn’t cut it anymore. And was still earning good money. However, his assets held a range of options that he could use to generate even more money than his salary.
For example, he could renovate to add value and earn more equity. Or, he could buy, renovate and sell to raise capital.
The capital he could earn from doing these sorts of things meant he could get even more finance from his lender than what his payslip could have achieved.
THE IMPORTANCE OF PROTECTING YOUR BASES
Nathan says it is essential to protect your bases. As an investor, you have an active income from work as well as a passive income from property. It is important to keep your active income going for as long as possible in order to generate and build your passive income.
You are probably good at what you do, meaning you will earn more for your time doing what you’re doing, then focusing 100% on something completely new like property.
One day, you will find yourself in a position where going to work may not be worth your while if you can spend the time on a project that will make you more, such as a new development.
Until then, it is advisable to stick with what you are good at; keep working and earning income, and invest as much of st as you can into building a passive income through property investing. A team of experts can help you
A team of experts can help you maximise your resources (time and money), while you focus on doing what you do best. And they worry about getting you results through property.
KEEP THE GOOSE ALIVE
Nathan says, don’t disrespect the goose that lays golden eggs. The goose is your job and the eggs are your income. In order to protect your bases, keep the goose alive and invest the eggs into making even more money. One day those eggs will hatch into more golden Geese, giving you an even greater income.
Today the banks don’t value rental income as highly as they did in the past when assessing borrowing capacity. A solid taxable income base from employment or business will go a long way to helping you build a portfolio of many properties, and give you more financial options.
The desire to free yourself from your job may be overwhelming. But, it’s vital to practice delayed gratification, so you can reap greater rewards in the future and tell your boss where to go with style!
Have you decided to quit your job to focus on property investing? What led to you making this decision? Please share your experiences in the comments section below.