The Four most dangerous words in property investing

The Four most dangerous words in property investing

Wouldn’t it be great to know what’s ahead for our owned?

Currently the future seems uncertain as we manager into the more mature stage of this property cycle and most reporters seem to fall into one of two tents 😛 TAGEND

One radical intimates we’re in for a period of slower growth, but basically the long-term property boom will continue. Economic growth

While the other camp recommends our belonging markets are to be able to implode.

My many years as a dimension investor have schooled me not to try too hard to predict our markets time by year, but instead to take a long term view, then allow for cycles/seconds around this long term trend and be prepared for uncertainty, surprises and the unexpected.

However, these more unpredictable economic terms bring back a remembrance from when I was still a newcomer investor and one of my early instructors schooled me that the four most dangerous statements a dimension investor could say were…

“This time it’s different.”

Unfortunately, in my early days I neglected his advice to my harm, as I found that history does in fact repeat itself. Here are some other instructions I learned along the way 😛 TAGEND Booms don’t last-place forever

One of its important exercises I learned is to never get too carried away when world markets is booming nor more disenchanted during asset slumps. property investors

Letting your passions drive your investments is a sure-fire way to disaster.

During a boom everyone is optimistic and expects the good times to last forever, just as we lose our confidence during a downturn.

Our dimension markets react cyclically and each boom defines us up for the next decline, just as each slump paves the route for the next boom.

This means that even as you are benefiting from our strong real estate markets, get preparations for the next stage of the belonging cycle.

During the last cycle, most investors didn’t actually have their downside embraced or their upsides maximized.

Tactical property investors buy occasion

Property investing is really a game of finance with some real estate properties throw in the middle.

Successful investing is essentially buying time with sufficient financial buffers to travel the ups and downs of world markets while your asset locate stretches in value.

Real estate is a long term proposition and Warren Buffet said it right when he explained that: “Wealth is the transfer of money from the impatient to the patient.”

Beware of doomsayers news bad economy

As long as I’ve been investing I remember hearing cause why property qualities will plummet.

However, during that time “investment grade” qualities in our capital cities have consistently increased in value and are likely to continue to do so.

Sure, values languish at times and of course property expenditures descend a bit during the slump stage of the cycle, but the value of well located assets in our capital cities has never “crashed.”

They’re underpinned by the large percentage of home owners who don’t climb send when world markets turns.

Follow a method

Strategic investors follow a system to take the affection out of their decisions and ensure they don’t speculate.

Let’s be honest, almost anyone can make money during a strong property market because the market shields up misconceptions, but countless investors without a arrangement are situated in fiscal hardship when world markets turned in the past.

If you prefer to have consistent advantages and shortened risk, follow a establish system.

Make your investing digesting, so the rest of your life can be exciting.

It’s about Location

Over the long-term, around 80% of the performance of your investment will be due to its point and around 20% will be related to the property you purchase in that location. location map house suburb area find

Yet during the last boom numerous investors forgot the age-old fundamental of buying the best property they could render in a confirm location.

Instead they came sidetracked by chasing the next “hot spot” and got caught out when the mining upturn faded.

Or they bought “cheap” properties in secondary points or shot cash flow in regional areas and now they feel they’ve lost out as the owned thunder in our capital cities surpassed them by.

Strategic investors do it differently….

They make educated investment decisions based on research and buy a asset with a high land to asset rate below its intrinsic quality, in an area that has experienced above average long term fund increment and is willing to continue to do so because of the demographics of the people living in the area. house real estate

Then these smart-alecky investors “manufacture” capital growth by adding cost through restorations or redevelopment and hold on to their properties as a long-term investment.

Yes- it’s unlikely that things will be different this time round – record has a way of repeating itself.

These are just 5 of the many lessons that I have learned over the years which I will be using to make sure I’m start for the next stage of this property cycle.

What are you going to do?


As ratifies point to softer growth conditions for Australian property over the next month, independent professional advice and careful consideration will be as important as ever in navigate Australia’s motley market conditions. what properties are investment grade

If you’re looking for independent admonition , no one can help you quite like the independent dimension asset strategists at Metropole.

Remember the multi accolade acquiring squad of asset speculation strategists at Metropole had not yet been properties to sell, so their suggestion is unbiased.Whether you are a beginner or a seasoned owned investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your belonging financing to the next level.

Please click here to organise a era for a conversation. Or bawl us on 1300 20 30 30.

When you attend our agencies in Melbourne, Sydney or Brisbane you will receive a free follow of my latest 2 x DVD program Building Wealth through Property Investment in the brand-new Economy valued at $49.



Here’s your chance to invest 2 powerful periods and learn renovation and developing strategies that suffered dimension experts are using around Australia to “manufacture” capital growth and make strong rental returns, so that they can win in today’s challenging property markets.


When you attend, you will learn:

How to profit from restorations and evolution 😛 TAGEND

How to select the privilege type of qualities to renew for substantial benefits. How I obliges substantial returns on my coin by developing residential quality including a number of diversified sessions on how you could become a property developer. You will receive my -A Z Manual of Property Development including Metropole’s internal checklists and worksheets. This manual is not available anywhere else. What investigate you need to do before you buy a quality for redevelopment or improvement. How to maximise profits by selecting the right entity before you buy. renovation property The do’s and don’ts of seam enterprises and how you can use them for blooming The corrects that even health professionals have made and cost them thousand. The major difference in investment that stops beginning makes dead in their racetracks- and how to overcome it. The simple experiment that 95% of beginning developers carried out under at the inaccurate age, potentially costing them tens of thousands of dollars. How to save substantially on construction costs. The software tools the professionals use to analyse their administers and accept feasibilty studies 9we step you through these step by step. The chances of using your architect’s panel of developers. Why you shouldn’t use your architect as a project manager. Which consultants to use for your progress, how to choose them and how to pay them. The three steps to getting your build approval through more quickly and at the same time saving coin.

Understanding development approval stoppers- the essential points check directory to save you era, money and sorrow Many more day and fund saving ideas, deal shaping gratuities and transaction divulging catches to avoid.

Plus you’ll learn a accumulation of advanced asset investment concepts.

What is really going on in the world economy and what this are meant to you as a quality investor. How to find property that won’t relationship you down with negative cash flow. case-study-renovation What exactly drives quality expenditures — why, over the next few years, some assets will perform so many of them than others and how to find these properties .. How to hand-picked the outskirts that are likely to provide strong capital raise over the next few years( numerous suburbs will not ). How to use the lessons from previous dimension cycles to take advantage of the opportunities that lie onward. Most investors will miss out! You’ll adoration it when we show you how to beat the banks and get better finance. You will learn how to get the banks to treat you like a advanced investor. The tax strategies of the affluent will be presented by Ken Raiss- Australia’s top asset accountant. Almost everybody wants to know about tax and how to minimise it legally. Most beings earn money, pay tax and live off what is left. When we evidence you how to invest and are living through your income before tax, you could have twice as much money at your disposal to invest. Bullet proof levy organizes and resource safety approaches.

If you really want to develop financial independence I indicate you invest 2 potent, jam-pack jam-pack days and learn renovation and developing strategies that known quality experts are using around Australia to “manufacture” capital growth and generate strong rental returns, so that they can win in today’s challenging property sells.

Take your belonging endowing to a whole new level by join me in October at my Property Renovations& Development Workshop .

Maybe now it’s time you stepped up and played in the big league by getting started in property redevelopments or development.

This is the course where other “experts” who are now teaching got their education. Click now find out more and reserve your place

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