The advisor Mario Barrantes from the Nativu Escazú & Santa Ana area, a few weeks ago gave a conference about the Myths of Investment. We bring this information to the blog for you because we consider it very important. Many people think about investing money, not so much just for wealth, but also for the future. And an investment for passive income can be the key to your retirement.
It’s about quality of life. There is business, and it is what I do every day. But above it all, investment is about quality of life and thinking about the future.
What is a passive income?
A passive income is one that does not require as much time and resources but still produces a significant and constant cash income. Some examples of passive income can be: creating a blog, developing an app, doing tutorials on YouTube, buying shares, etc.
But the way to have a passive income that we want to highlight is that of investing in real estate. There are many ways, such as flipping properties, re-selling them, or renting. To encourage you to consider investing in real estate, we want to debunk some investment myths.
Myths VS Realities of Investing
MYTH #1
“It takes a lot of money to invest“
REALITY
It is not necessary to have ALL the money to be able to invest, it is only necessary to have a good business that makes sense. In other words, you can use forms of financing, request a loan, etc, to get started. But you need to have a good deal that you know that at least it will cover the expenses of the loan for you. The idea is not to just earn that but to be able to earn something extra, but the priority is to at least not lose money. Because in the long run when the loan is paid that money will be completely yours!
MYTH #2
“Investing in real estate consists of buying and re-selling because that is the best option”
REALITY
Buying and reselling is risky because if you cannot sell the property quickly, you may start generating expenses and rather end up losing. These expenses can be taxes or condo fees. A good option of a property investment that constantly generates income is to rent. Since the amount of effort it requires is minimal, and you will always be winning.
MYTH #3
“Renting is risky and generates a lot of work”
REALITY
The rental business is not risky, and it doesn’t necessarily create a lot of work. It is true that the reality of a tenant is that he must be aware of the maintenance of some apartments, but this does not take much time. It all depends on the type of tenant you have, and although it may not seem like it: that still depends on you. If you do a good analysis of the prospects to rent, ask the right questions, and do your research efficiently, then you can have a good tenant and therefore less stress.
MYTH #4
“Investing in real estate is risky”
REALITY
Everything in life has a certain level of risk, but that always depends on how well you advise and research what you are going to do. Investing in real estate is no different, because if you are looking for a person who can teach you, analyze your future investment, and educate you throughout the process, then you can win. But it all depends on whether you are willing to take your learning in your hands and inform yourself in a good way.
MYTH #5
“Only a person who knows business can get involved in the investment world”
REALITY
As we mentioned previously, anyone who intends to learn can get involved in investing and earn money from it.
If you want to live happily investing wisely, as our NATIVU manifesto says, don’t let these investment myths limit your possibilities. The reality is that anyone with the motivation to learn and earn money, who knows they are making a long-term investment, can get involved.
