A few weeks ago I asked for your help by ranking the importance of 5 statements and a big thank you to those who took the trouble to respond. It was much appreciated, as I want to put together a program to help YOU, by addressing YOUR needs and wants and helping and assisting you to achieve them.
The clear winner in the ranking was ‘Being Healthy,’ which clearly shows that regardless of creating wealth, health is number one and as the saying goes; “Health is Wealth.”
Number 2 was ‘Wealth Creation’ and Number 3 was ‘Retire Comfortably.’
‘Retiring Early’ came in last at No 5.
The puzzle for me however is that although wealth creation is important to most people, it does not get addressed and pursued by the majority of people. Otherwise we would not have so many people on a pension and government handouts. Furthermore the majority of people do retire on a pension, which is by no means retiring comfortably.
Here are some lessons that I have learned about investing through previous property cycles.
The markets will slow down, but they do not go into reverse – they just slip form fifth gear to second gear. We also know that if history repeats itself, some markets will swing too far into the negative, driven by fear.
Do not listen to the ‘Doomsayers,’ they are always out there and usually spruiking their solution. For as long as I have been around investing; and that’s over 40 years now, I remember hearing people with excuses why property prices will stop rising, or even worse, why property values will plummet, however well located properties have doubled in value every 10 years or so.
Fear is a very powerful emotion, and one that the media used to grab our attention.
Sadly some people miss out on the opportunity to develop their own financial independence because they listen to the messages of those who want to deflate the financial dreams of their fellow Australians and profit from them
If you learn from previous cycles the roller-coaster ride will not be as dramatic because you won’t let your emotions drive your investment decisions.
Remember both fear and greed will drive you down the wrong path.
YOU MUST FOLLOW A SYSTEM
Smart investors follow a system to take the emotion out of their decisions and ensure they don’t speculate. This may be boring, but it’s profitable.
Let’s be honest, almost anyone can make money during a property boom because the market covers up most mistakes. But many investors without a system find themselves in financial trouble when the market turns.
Warren Buffet said it succinctly: “You only find out who is swimming naked when the tide goes out.”
In other words, if you aren’t following a system that works in all market conditions you will be caught naked when the market changes. If you prefer to have consistent profits and reduced risk, follow a proven system.
Make your investing boring, so the rest of your life can be exciting.
GET RICH QUICK = GET POOR QUICK
Property is a long-term investment yet some investors chase the “fast money.”
You’ve probably met people like that – they look for that deal that will make them fabulously rich.
When you see them a year later, they’re usually no better off financially and still talking about the next deal that will make them rich.
They are often influenced by the latest; get-rich-quick artist, with a great story about how you can join them and become stupendously wealthy. Their stories can be very compelling, even hard to resist. They often pander to the wishes of people who would like to give up their day job to get involved in property full time, but in reality it takes most people many years to accumulate sufficient assets to do this.
Patience is an investment virtue.
Warren Buffet said it right when he explained that: “Wealth is the transfer on money from the impatient to the patient.”
IT’S ABOUT PROPERTY
If you want to create wealth simply and safely you have got to be in the business of property investment. Yet during the last boom many investors forgot the age-old property fundamentals of buying the best property they could afford in proven locations. Instead they got sidetracked by glamorous finance or tax strategies and some lost out.
Smart investors do it differently.
With this said, and after listening to your input, I will be letting you know about some exciting news that I will bring to you shortly. So be on the lookout for it and I will ensure that you will ‘Create Wealth Through Property,’ and let the money work for YOU!
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”The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets. The poor and the middle class work for money. The rich have money work for them.” – Robert Kiyosaki (author of Rich Dad Poor Dad)
Cheers, Bertram
