So in my previous e-mail I gave you three good reasons why I felt that property investing was a great vehicle for wealth creation.
However at the centre of this wealth creation vehicle is the investor – and whilst many people want the results that a successful property investor has, there aren’t many who are willing to do what it takes to actually be that successful property investor!
So, let me tell you what it will take:
1. Lots of Action
There is no such thing as getting rich quick, and if that is what you were expecting in property investing, then I am going to burst your bubble: you will not get rich quickly through property!
Unfortunately, there is a lot of BS out there with people telling Australians that they can make a lot of money very quickly through property, and I’m going to dig my heels in and tell you that you can’t.
There is a lot of work that goes into buying a property, just look at what the average home buyer has to go through:
Firstly, there’s the process of saving up the deposit – this takes time, and some sacrifice, but after saving between 10% and 20% of what’s the purchase price – which can take a few years for many people – they are spending weeks and often months looking for the perfect property. Imagine how many houses they would be looking at, how many offers they would be putting in, and how much negotiation would take place.
Then there’s the additional work of dealing with lawyers and conveyancers, securing mortgages, inspections and dealing with the constant calls from the real estate agents.
And that is just the average house buyer! As an investor, you need to be across market conditions, legal and regulatory changes, tax minimization strategies – and much more, and constantly doing due diligence to search for the next property.
Sure you’ll be able to leverage some of the work, but here’s the thing: it comes down to taking lots of action.
But, the payoff is your financial security.
Everybody has a different strategy, and so any real estate investment advice that you take should fit in with your personal circumstance, your personal goals, and your personal strategy.
There are way too many people out there taking real estate investment advice from people who have no idea about strategy, have no idea about your personal finances or situation, and have no idea what your personal goals are!
In fact, there’s a strong chance that the people giving you this advice have never even invested in property themselves!
Your strategy is your roadmap to financial independence, it takes into account your current financial situation, the goals that you wish to achieve, and the most practical way to get you from where you are to where you want to go, without it hurting your lifestyle.
Everybody wants to give you advice, even though they are not experts.
Most of these people have your best interests at heart, and they are your well-wishers. They don’t wish for you to suffer unnecessarily, and so they are giving advice based upon their view of the world – not upon any sound evidence or any sound experience.
However these same loving and worrying people are also not the people you would take medical, legal or even accounting advice from – unless of course, their doctors, lawyers or accountants. But let’s assume that they’re not.
Now given that you wouldn’t take legal, medical or accounting advice from them, why the heck would you take financial and investment advice from them?
Their strategy is to protect you. Your strategy is to achieve financial security and build an investment portfolio.
This also means that you need to not be emotional when it comes to investing. If the returns aren’t there, if the numbers don’t stack up – then don’t buy the bloody house! It doesn’t matter if it’s a large 5 bedroom house with a pool and a tennis court in a “booming” area. If the numbers don’t fit your strategy, then don’t buy it!
Too many investors buy property based upon how much they love it, and not based upon the numbers. Too many investors buy property based upon advice of their family and friends, and not based upon sound financial strategy.
Your strategy is your roadmap, and as long as you stick to the map, you’ll get to your destination.
Property investing is not hit and miss: this isn’t the casino, and investing is not the same as gambling.
Property investment isn’t buy and pray: this isn’t about “let’s hope it works”.
Too many investors take one or both of the above approaches, and I can promise you that neither of the two work successfully, or as a long-term strategy.
The greatest investment that you can make as an investor, is investment in yourself and your education.
You cannot guess your way to success: guessing is a surefire way to crash and burn and leave yourself broke!
You need a good, solid education so that you know what is happening around you today, and to help you prepare for what maybe coming in the near future.
Your foundational education will give you solid principles upon which you can commence your investing journey as a professional.
However continuous education, and continues improvement is the cornerstone of successful property investing:
- You need to know what is happening in the property market
- You need to know what’s happening politically, and if new legislation is going to be introduced, or if existing laws are going to be amended
- You need to know any changes in tax laws that are coming up, and if that will affect you and your goals
- You need to know what the banks are doing and how that may impact you and your strategy.
So many people are really up for the idea of being wealthy through property investing.
Unfortunately there’ll be a portion of people that will not be willing to put in the effort, that would not be willing to follow a set strategy, and will not want to educate themselves.
Now, I don’t know if that is you or not – if I had a crystal ball I certainly would be in property investing!
It’s time to make a decision: Will you do what it takes?
I want you to make a list of all the reasons that you want to be a property investor, and why you want to be financially independent.
You may want to travel, you may want to pay for your kids private school fees, you may want to not have financial stress, you may want to have a comfortable retirement – whatever your reasons, they’re perfect for you, so write them down.
Once you’ve done that, review it. You may at this point feel some emotions – either empowering ones or some scary ones – and it may push your boundaries.
What I would like you to understand, is that you’re not the first person to go through this, and you certainly won’t be the last!
What you need to do, is be firm and ask yourself how badly do you want what is on your list?
Ask yourself are you willing to go the extra mile? Are you willing to be strategic? Are you willing to learn and acquire the knowledge?
If you are, and the answers to the above questions are yes, then you are in the right place!
Now take these items you wrote down, and feel free to share it with your partner or someone else who stands by you and give you support when you need it. Then maybe put it on your fridge, or somewhere where you can see it.
At times, when you are feeling a bit down and are questioning yourself – review the list, add to it and amend it as you need to. This will help you push forward in the tough times and remind you why you started in the first place!
I know you can do this, and I’m really looking forward to helping you along your journey.
So give that a go, and I’ll share some more great stuff with you tomorrow.
P.S Tomorrow I want to share with you how Chris – a new investor – managed to secure a $136,000 discount off his first investment property!