Well here we are again with yet another year gone by and the million-dollar question is; “Did you improve your financial position in 2016.”

From past experience I would say that only around 10% did, and if that is true, it is truly disappointing. But let us not be too downhearted, because 2017 could change all of that.

If you do want to change this; let’s make it simple and follow these 3 easy steps.

1. Make a decision to improve your financial position in 2017.

This might sound ever so simple, but if it was that easy you already would be on your way. So what is stopping you? Do you want to be like the majority of Australians that retire on a pension?

Is it possibly fear, or indecision, or not knowing what to do, or not sure where to start. Let’s make this step easy. As they say; ‘A journey of a thousand miles begins with the first step.’ Step 1 is:

Email Bertram@itsabreeze.com.au and ask for guidance. Just say; “Help.”

2. Take stock of where you are now

To make any sort of plan, you need to know where you are now. You need to know what your assets and liabilities are, in other words what are you worth.

If you own a home, you need to know what its value is. If you have a mortgage you need a health check on that mortgage. Given the fact that interest rates are at an all time low, you need to make use of this situation and use it to your advantage. Why pay interest of 6% or 7% when you could be paying 4%.

Furthermore; are you paying principal plus interest? If so; “Why.” Just ask me and I will show you why! You have got to have a good reason to be paying both principal plus interest. Of course the banks will like you to do this, but I can show you why it is not.

If you do not own a home yet, you might want to consider buying an investment property first. There are many good reasons for this; just ask me and I will show you; ‘Why.’

3. Make a plan

If I am not involved in your wealth creation, you need to make a plan. You need to know what to invest in and where. You need to do some good research.

It’s not good enough to listen to a Property Spruiker and buy an overpriced property with a huge built-in commission. Do your own homework or just ask me.

It is not the usual run-of-the-mill plan that makes you a really good return, it is thinking outside the square and making a plan that capitalizes on maximizing your return in a safe and well-planned way.

It does not have to be what the majority does; it is about being creative and smart.

Start with the end in mind!

I hope that I have given you a few good ideas, because it frustrates the hell out of me that so many people miss out on what is really such a safe and guaranteed way to wealth creation.

I have helped so many people in this endeavor and it pains me to see so many miss out. It is so easy when you know how!

As usual the doomsayers are already out there predicting a crash, without any basis whatsoever.

We have a shortage of properties, a demand that is generated by huge population growth and low interest rates. With this formula there is no crash.

Furthermore the property cycle has been around many times and perhaps apart from an easing off of prices this year; it will be no different to last year.

With this in mind in 2017 I will be offering selected clients the opportunity to join with me in some very exciting opportunities. Many people have done so in the past and are laughing all the way to the bank!

Stay tuned for more news on this!

Cheers

Bertram

Start with the end in mind

I have said it many times and I will say it again, you must know where you want to be and when. Everyone wants a great rate of return, but how should your investment strategy be designed? It should ensure that it assists you to: either provide an income and/or grow your capital to ensure that you increase your chances of achieving your financial goals. Start with the end in mind and know what you are trying to achieve and establish your timeframe. For example, don’t invest in shares for a quick gain if you will need the money in 12 months. The intended quick gain could actually be a quick loss. If you can stay invested for 5-6 years then the risk of short-term volatility diminishes with the longer time frames.

Invest not Speculate

The tried tested and true ways that have worked many times before are hard to dismiss. Investment is for the long-term. That said, at times you have to think outside of the box. But then, you must do plenty of homework before you jump into anything in order to minimise your risk. Almost everyone was happy to be an aggressive investor prior to the GFC, but realised their attitude to risk was different when markets fell. Ensure your investment choices reflect your tolerance to volatility and risk. Invest in things you know will be there tomorrow. Sensible and controlled investing is not gambling, but speculative investment is. Stick with quality and be patient – you will be rewarded in time.

Resist the temptation to follow the herd

Many people base their investment decisions on their emotions at the time. Being fearful (in falling markets) or greedy (in rising markets). Following the herd or making snap decisions based on emotion is a recipe for disaster. Warren Buffet (renowned US investor) commented during the GFC that he believes investors should “be fearful when others are greedy, and greedy when others are fearful”. Set your own goals, run your own race and try to screen out the background noise. Make rational and factual based decisions where possible – a great adviser will assist with smart decision making in times of market volatility and uncertainty.

Never over commit with debt

Although borrowing to invest is a good way to increase your wealth over time, ensure it does not place unnecessary pressure on the family finances and require that you compromise your lifestyle to a point where you cannot afford to enjoy yourself. Placing unnecessary financial stress on yourself is not recommended!

Never over commit with investments

Ensure you have an emergency cash supply. Ensure a portion of your investments are liquid and can be sold quickly if the need arises (term deposits are handy for this). But importantly make sure you never have to sell if markets are low and the timing not right.

Do not hesitate

Begin your investment strategy as early as you can, as it allows you to build the foundations of future financial success. Even when markets are high, if you are ready; just do it. Do not wait for the market to rise or to fall. Take the step when you need to, because this is a long-term strategy. If you are disciplined and patient, you will reap the rewards.

Do not be a loner

People that are financially sound and successful get advice. This is because if you have the right adviser who is not just selling you a product but has your best interest at heart he/she will give you right advice about your financial strategy and structures and your chances of achieving financial security increases dramatically.

How I can assist?

I am happy to offer you a complimentary consultation to discuss your options for wealth creation. All you need to do is email me at bertram@itsabreeze.com.au with the heading ‘Complimentary Consultation’ and I will send you a questionnaire, which will help you and help me formulate the right strategy for you.

 

Here is a short article titled: ‘A beginners guide to negative gearing’

Just click HERE to read

And if you want to be kept up-to-date with what is happening in the property and investment market, like my Facebook page; ‘Property Advocacy Melbourne’ and you will have access to all the current news and information as it happens.

To like us on Facebook, click HERE

Till next time.

Warm regards 

Bertram

If you save for the whole of your life you may end up being comfortable but you will never be wealthy. That’s because the more you make the more they take and then you end up paying tax again, on the interest that your hard earned savings attract. So it’s time to change focus and think about buying and borrowing to become wealthy.

If you have lived in your own home for over five years you would have sufficient equity to utilise to buy an investment property.

As I said in my last post, not many people get beyond owning more that two properties and sadly some do not ever take that step. Where are you sitting at the moment? What are your goals about retirement? 

It is never too late to start. As Wayne Dyer says “If you are going to dream you might as well dream big.”

A book that I read many years ago was a great help to me on my journey of self discovery and growth. I can highly recommend it as a means of creating wealth. It is called “The Science of Getting Rich”

It was written many years ago, but stills stands true in todays world. Just click on the link and it will be yours, at no cost to you.

Click here

If you need any help and advice on this or any property related matter, please feel free to email me to bertram@itsabreeze.com.au.

For interesting property updates and property news; like us on Facebook

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Till next time.

Warm regards

Bertram

Bertram Daniel

It’s a Breeze Property Pty Ltd