Investment properties

October 2nd, 2008

One of the things I have never been interested in doing is buying an investment property. By this I mean having your house that you and your family live in and then getting a bank loan to buy another property to rent it out to build net wealth.

I know it makes sense in some ways to buy the extra house and rent it out. The rent then pays the loan and if the rent doesn’t cover all the expenses of the property you can negative gear it and get tax advantages. You then make money as both houses rise in value and your net worth increases. Despite all this I have never been interested or perhaps I am not called to do this.

I guess in many ways I am financially conservative and want to live a simple life. I have always been about saving money and then using it wisely and conservatively. I have never been one to splash out on the biggest and best cars, buy a big two story house and live a lavish lifestyle. It is just not in me.

For me being financially conservative and not wanting investment properties goes back to two things – being content with what you have and trusting God for the future.

I am content to own our three bedroom, one bathroom house with one living room. It is a nice and comfortable and on a nice sized block with a nice simple outdoor area to watch the kids play. As a family it is just what we need and it is much more than 90% of the worlds population can ever hope to own! Yes we are very blessed.

I also trust God for the future. Yes it makes sense to use your money wisely and save for the future, but for me personally I would rather use my extra money to build God’s Kingdom and store my treasures in heaven (Matthew 6:19-21). God knows what we need now and He knows what we will need in the future. I trust Him to supply our needs according to His riches (Philippians 4:19).

Now don’t get me wrong. I am not against buying investment properties full stop. If God has called you to build wealth by buying and investing in houses that is great. Go for it. But don’t just do it because your are worried about your future retirement, it is the latest money making trend, or because friends or an investment advisor has told you that you must do it. God knows what you need, and He WILL supply your needs.