Don’t we all look forward to buying a 2nd Property as an investment? (Or as some married couples say… a get away from our spouses?) #LOL
When we think of it; it has a lot of benefits, the few that comes to mind are for example: the capital appreciation, rental income and perhaps leaving it as a heritage for the next generation.
However, we need to overcome some issues such as: saving up for the down payment, qualifying for the loan, maintenance of the investment property, taxes, ensuring it gets rented out and so on.
This is where the concept of “Liquid Property” comes into play.
1. You do not need to come up with any down payment.
2. No need to go through tedious process of loan application.
3. No interest is charged to you on your monthly installments. Instead you earn interest on your payments. (Would you rather pay interest or earn interest?)
4.The future value of the property is always 3 to 4 times of your total contributions, and it is guaranteed upon approval (Capital Appreciation is guaranteed.)
5. No need to pay annual land taxes or any other taxes to the government.
6. No need to pay any maintenance for the property for life.
7. No liquidity hassle as the value of property is paid out within 2-3 weeks to your next of kin upon death.
8. No hassle of looking for a buyer to purchase property upon death.
9. No property gains tax incurred at any given point of time by your next of kin.
10.Not claimable by creditors to settle other outstanding debts.
These benefits of “Liquid Property” are used by the wealthy families in combination with Physical Property. If you haven’t got an exposure of your assets into “Liquid Property”, you are exposed to many liquidity risks; which means, someone may buy YOUR physical property at a discount someday.
Speak to your trusted financial advisor about “Liquid Property” or as some call it “Life Insurance”. Please share this with your family & friends
Authors: Glorie Low & Sanjay Tolani