All About Property

Now before you say “Not wealth creation again,” hear me out. What if I told you that I am saying it for a very good reason, which is; that you have the power within you to create wealth through property and if you are not doing this already, you are missing out BIG TIME!

So what am I talking about? It is the very simple and unbelievably effective tool of compounding interest.  Hear me out.

Albert Einstein, when asked what the most powerful force on Earth was, answered, “compound interest.”  He also called it the “8th wonder of the world.” Ben Franklin called compound interest the “stone that will turn lead into gold.”

So what am I talking about?

If you were given a choice to receive one million dollars in one month or one cent that doubled every day for 30 days, which one would you choose?

Most people will say I will take the one million dollars. The reality is that the one cent that doubles everyday will give you $5,368,709.12 in thirty days.

Surprised? Well that is the power of compound interest and if you looked at the figures it will be like this:

Day 1: $.01

Day 2: $.02

Day 3: $.04

Day 4: $.08

Day 5: $.16

Day 6: $.32

Day 7: $.64

Day 8: $1.28

Day 9: $2.56

Day 10: $5.12

Day 11: $10.24

Day 12: $20.48

Day 13: $40.96

Day 14: $81.92

Day 15: $163.84

Day 16: $327.68

Day 17: $655.36

Day 18: $1,310.72

Day 19: $2,621.44

Day 20: $5,242.88

Day 21: $10,485.76

Day 22: $20,971.52

Day 23: $41,943.04

Day 24: $83,886.08

Day 25: $167,772.16

Day 26: $335,544.32

Day 27: $671,088.64

Day 28: $1,342,177.28

Day 29: $2,684,354.56

Day 30: $5,368,709.12

As you can see the major growth is in the fourth quarter. So what is that saying to you? What it says to me is that if you buy and hold property today with the benefit of compound interest it will double in seven to ten years.

In the early seventies I was selling house and land in the City of Knox for around $15,000. Today those same houses are worth over $600,000.

So consider this! Would you pay off your mortgage early when you can get a much better return by investing the money.

In other words, you can earn more by investing than you would save by paying off your mortgage early.

Which leads me to point out that instead of buying a property for cash, you are better off borrowing and buying more than one.

I hope that I got you thinking. And if I have got you thinking, I feel that I have been of real value to you, because it is my mission to help and assist people to create wealth through property.

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If you want to have a no-obligation chat about this and more, please feel free to email me on Bertram@itsabreeze.com.au with a subject heading of “Lets chat’ and we can set up a time to have our chat. 

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“90 per cent of all millionaires become so through owning real estate… The wise young man or wage earner of today invests his money in real estate.” – Andrew Carnegie (billionaire industrialist)

Despite our obsession as a nation with owning property, only a small percentage of us actually own an investment property, and very few of us have more than one.

It usually comes down to one thing – fear. Many of us don’t want to step out of our comfort zone out of fear that something might go wrong.

We convince ourselves that we’re ok as we are, that we’re managing financially, and it’s probably best not to ‘rock the boat’. Unfortunately, it is this line of thinking that holds us back from achieving a better life for ourselves and our families.

Fear of taking the property investment plunge is all too common and can be caused by a number of things. Overcoming the fear can be challenging but it’s the first and most important step on the path to a successful property portfolio.

Begin by trying understanding the root cause of your fear. Are you holding back from starting or progressing your strategy because you’re worried your investments won’t make money or you think you can’t afford it? Perhaps you think it all seems too hard and requires too much time? The truth is it is easy when you know how!

Let’s look each of these fears and what you need to consider the resources you can tap into to help you re-wire your mindset and overcome your concerns.

Fear #1: What if I don’t make money?

With a well planned strategy and business-like mindset, your risk of failure is very low. Remember, ALL investments come with some risk. Aside from cash, which is delivering very uninspiring returns at the moment, property is one of the most stable options around and has been for many, many years. 

Investing is simply a necessity of life if you want to build wealth and keep on top of the rising cost of living. We all need to ensure our money is working as hard as possible for us and property does just that for you and has done for over a hundred years.

Everyone has access to professional financial advice – seek it out so you can set your goals, know your limitations and can put your fears to rest.

Fear #2: I can’t afford it

Some of Australia’s most successful property investors have built significant and highly successful portfolios on low incomes and very little savings.

There are many investment options out there for people with a low or no deposit. House & land packages, vendor financing and using a guarantor are three possible solutions, among others. People forget about the asset value of their own home and leave it under utilised.

If you’re concerned about not being able to service the monthly loan payments, focus on areas where property can be positively geared. You won’t find yourself out of pocket. On the contrary, you’ll have extra cash every week.

I’ve seen many people on low incomes and with very little in savings go onto achieve amazing things – all they have needed is motivation and action.

Fear #3: It seems too hard and too time consuming

Fear derives from the unknown. If you don’t have the time to educate yourself then tap the knowledge and experience of the It’s a Breeze Team that are all here to guide and support you through your investment journey.

If you can, it’s worth investing some of your own time learning about strategy options, the investment process, and potential investment areas.

These days, everything you need to know is at your fingertips. 

Consider spending an hour a night or during your lunch break educating yourself. Ultimately, it’s the knowledge you possess that will give you the confidence to take action and keep moving forward.

We all find it hard to find time outside of our daily routine for other pursuits – but what is more important than creating a better life for yourself and your family?

Or it is as simple as emailing bertram@itsabreeze.com.au and connecting with us to guide you on your way.

Do it now!