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How do I combine my
Business with Property Investment ?

Business and Property Investment are a great combination to really boost your Wealth Building.
(the assumption is that you are in business to make money, not just for the sake of manufacturing or providing whatever service it is you provide.)

 

  

Pros:
Long Term Growth
Security (Physical Asset)
Low Risk
No Staff
Uses Other Peoples Money
Tax Efficient
Security for Business Borrowing


Cons:
Cashflow support needed
Some Knowledge needed

Property

 

 

Property Type
High Growth
Probably lower return

 

 

 


 



Property Type
High Cashflow
maybe Lower Growth
 


Cashflow from
Business or
Sharemarket or
High Cashflow property
used to support
High Growth Property

 

Business

Pros:
Good Cashflow
Moderate Risk
Other Peoples Money

Cons:
Knowledge needed
Own Money
Staff,
Economy dependent
Tax payable

 

Profits from Business invested in Sharemarket

Profits from Sharemarket invested in Business

Profits & Cashflow from Business & Sharemarket invested in Property

 

Sharemarket

Pros:
Good Cashflow
No Staff
Other Peoples Money
(Margin trading)

Cons:
High Risk
Knowledge needed
Own Money
Market dependent
Tax payable

         

*******************************************

The reason you should own a Business
(Property or anything else)

In a Job, the first thing you do is pay tax,
then you get to spend what's left on paying your Expenses.

With a Business, First you pay your Expenses  
then pay tax on what is left.

This makes a Big Difference to your income.

Job Income Business
Generate Income Generate Income


Pay Tax

 
Personal Expenses
Pay Private Mortgage
or Rent
Pay Business Mortgage
Lease or Rent
Pay Bills
Power, Phone
Travel Expenses
Pay Business Bills
Power, Phone, Office
Travel Expenses

Maintenance
 
Maintenance
Improvements
New vehicle
Renovations
Improvements
New vehicle
Renovations
Food etc Business related activities
Meeting venues
    Pay Tax
Personal Expenses
Lifestyle Activities


  Food etc
 

    Pay Private Mortgage
or Rent
    Pay remaining Private Expenses  

 

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