Investment Solutions and Angry Birds
By Neil Vorster
Below is a spontaneous video interview of an Angry Bird. Angry about the investment solutions offered by so-called investment experts.
I read an article this weekend that really made me angry. Today I’m wearing my Angry Bird T-shirt underneath my formal shirt in angry protest. I’m an Angry Bird!
These guys, the so called experts in the field of investment, offer investment solutions to the believing public. All they are trying to do is sell their own product! They sell a program or system whereby they invest in the stock exchange for the client or invest in retirement annuities for them. Their arguments don’t make sense … I am at a loss for words!
Investment solutions, the offending article!
In the article that I read recently, the one that really got me going, the author said that investing in residential property was bad. (I am not going to mention the author, as there is no advantage to be gained in mentioning him by name )
He took the ABSA house price index over the last 20 years, stripped out inflation and came to the conclusion that residential property in South Africa has only grown by a few percentage points above the inflation rate over the last twenty years. He effectively said “therefore residential property is bad, throw it out the window, and come and invest in the stock market, in stocks and shares.”
The stock market is, as we know volatile. You can make money there, but you really have to know what you are doing. What these so called investment experts are doing is distorting the truth in an attempt to sell their product. I believe I am justifiably angry!
More on this subject of the investment solutions out there …click here
What we offer
What Organic Growth offers is this: We show the man-in-the-street how to invest in residential property and grow their portfolio to the point where financial freedom is reached. By financial freedom we mean, the point at which your job becomes optional!
Whether you invest in property through us or not is irrelevant to us.
We are here to show you the steps to financial freedom and if you use us to source your property, that’s fantastic, if you don’t, that’s also great. Our objective is achieved either way.
A simple example
I want to share a simple example to illustrate how the method employed by the investment expert in question, used flawed logic to brand residential property investment as fundamentally bad.
When you invest in residential property, you invest with the banks money, not your own.
His logic was based on a person investing in an average area and paying cash for his property. What he didn’t mention in his article was that when an astute investor invests in residential property, he invest the bank’s money, not his own. Secondly he buys at good prices and in the best areas, thereby beating the national averages by miles!
This is how the astute investor buys:
- Select and buy a property in a prime area
- Borrow money from the bank (a the form of a mortgage bond bond)
- Install a tenant to pay your bond back.
You are investing with somebody else’s money. As long as you do your sums right and you watch the cashflow … how can you lose?
Capital Growth is the power of property investment
The power of property, as we know, is capital growth.
So, now you get capital growth on an investment that you didn’t pay for. You borrowed the money from the bank to buy the property, installed a tenant to pay the bond off over time.
All you are doing when you buy residential property, is effectively transferring wealth to yourself over a ten to fifteen year period depending on your purchase.
For somebody to summarily dismiss residential property investment as a method of creating or generating your own personal wealth, makes me angry.
And that’s about all I have to say on this matter now, before I get carried away and rip off my Angry Bird shirt in protest over these so called investment solutions offered by the “experts”.
Watch this video to see a spontaneous interview recorded recently … some fun about the serious matter of so called investment solutions.
Please share this message on Facebook, Twitter etc, you never know which one of your friends is about to get hoodwinked.