How to build generational wealth through property (starting with just ONE investment)

Do you ever think much about legacy?

Not just about your own legacy, but about the legacy you’re going to leave behind for those who come after you. For your kids, and your kids’ kids, and your kids’ kids’ kids…yeah you get it.

Well, what if we told you that property doesn’t just have to be an asset. In fact, property can be a legacy too.

The undeniable truth about property is that using it to build wealth is one of the most powerful financial moves you can make. It’s something that you can pass down, build on and leverage time and time again.

And that legacy? Well, with the right strategy, what started as just a single property purchase – a single investment, can actually turn into financial freedom not just for your lifetime but for your kids and their kids too. Your legacy can turn into generational wealth – generational wealth that starts with YOU.

So what exactly is generational wealth and how can you use property to create it? Let’s talk about it:

What is generational wealth?

Generational wealth is wealth that doesn’t stop when you retire or pass away. It’s all about the money, property and assets you build NOW, so that future generations (and the ones after that) don’t have to start from nothing.

Generational wealth means you can create a strong foundation – at the very least for your kids and ideally for their kids too: more financial security, better opportunities, and the freedom to live life on their own terms.

How can property be so important in building generational wealth?

Well, especially in Australia, the housing market has shown us really consistent growth over time, which means that the longer you can hold on to your investment – the more you are likely to benefit.

CoreLogic data shows that house values in Australia have risen 382% over the past 30 years, which is an increase of around 7.2% every year. So the data is there – even despite the short-term fluctuations in the market and the period of time (30 years is a long time!!) this data illustrates.

We know that it’s important to make your investment decisions based on your personal situation and your own tailored strategy, but regardless – the data doesn’t lie. If you buy smart and hold on to it long enough, property can turn into a seriously great tool to build wealth.

With this in mind, how can you truly build your legacy through property?

Here’s where things can get really powerful – when you take building your legacy into your own hands through a little thing we like to call equity.

You see, once you’ve purchased that initial property, you’ve got yourself in a great position because it means you don’t need to save up all over again to purchase another one.

No, instead you can tap into the equity on your first property (the increase in value your property has seen) to help you buy your second one. And once you’ve purchased your second one? Well, I think you see where this is going.

Essentially, you can use your current properties to start building your portfolio, without putting any strain on your financial position.

Along with equity, another concept that makes investing in property far more powerful than stocks or crypto is leverage.

Leverage allows you to start off with a much smaller buy-in (and this can actually COME from the equity you’ve made), borrowing the rest of the money from the bank and allowing you to invest in a much larger asset than you would otherwise be able to with purely your own money.

To sum it all up – these core property investing concepts are what’s going to help you build your legacy – even if you’re only starting with a single investment.

So, we’d like to leave you with this: even if you’re not thinking that far ahead right now, building with your future in mind means that the decisions you make today can have a positive effect for decades to come.

We get it – talking about legacy and generational wealth and looking so far into the future can feel pretty big and scary and maybe even unnecessary – especially if you’re just looking at taking the first step.

But it is an important factor to consider, and you don’t have to do it all on your own. At Propell we tailor your plan based on your individual goals, circumstances, financial situation AND the kind of legacy you want to leave behind.

We’ll help you map out a plan that works for you, your kids, your kids’ kids…

Give us a call on 1300 776 735 or contact us here and let’s start making smart moves for you and your future generations.