By now you are probably sick of hearing about the economic wows of the world and how Australia’s economy has now hit some speed bumps. Many of the messages we are getting tend to scare us, while at the same time completely ignoring the solutions on which we need to focus on to move forward.
Instead, today I’m going to share with you four keys to succeed in any economy.
1. Take care of “your” economy
Firstly you need to separate “the economy” from “your economy.” “The” economy is what is happening in the outside world. “Your” economy is what you think, how you feel and what you do.
While you have no control of the world economy, you do have responsibility for your own personnel actions and prosperity. So focus internally.
Think about it… if I told you there would never be another property downturn or another recession, would you believe me?
So it should come as no surprise that we regularly have property downturns, that our property markets cycle with booms and busts, and that most countries have a recession every seven to 10 years.
To stand out from the crowd you will firstly need to acknowledge that the economy and our property markets are cyclical. They have always been like that and will always be like that. Next you will have to work on your own economy, by focusing on…
2. Your thoughts
Where is your focus? What are your beliefs? If you constantly focus on all the bad news and the difficult times, how does that make you feel?
As a property investor you need to focus on the opportunities around you because you will find what you look for. Your outside world is a reflection of your inside world. What you see is what you look for.
A great example of this was a few years ago when I took my son Harrison for a driving lesson. He was out looking at new cars and as we drove down the street he said, “Hey Dad, look at the Corollas on the streets.”
Interestingly I looked around and said, “Where? All I can see are Mercedes – look at all the Mercedes on the streets.”
What you look for is what you see. If you look for all the bad news you’ll find it. On the other hand, if you look for opportunities, you will find them. And boy are there opportunities out there at present.
Interest rates are still reasonable and are likely to stay at these levels for awhile. Residential rents are rising, which means that yields for investors are on the way up and the out-of-pocket expenses for owning a good investment property will decrease a bit.
With uncertainty about interest rates, the carbon tax, our local economy and overseas countries going belly up, many home owners and investors are sitting on the side lines, meaning there is less competition for all the good properties that are out there.
If you focus on the bad times, your concerns about a downturn will become self-fulfilling. When you focus on the negatives, it’s hard to progress and prosper. Your negative beliefs will bring about negative behavior, which will limit your actions and limit your results.
But when you recognise that the current market presents you with a smorgasbord of opportunities you can step up and take advantage of them.
3. Take responsibility
The value of your property portfolio may have dropped or you may have lost money in your superannuation, but your net worth is not your true worth. You are your greatest asset. Not a property or a stock.
Too many people are handing over responsibility of their own personnel economy to somebody else. You must take responsibility for your investment business and becoming financially fluent. Educate yourself; learn the rules of money for the new financial era and develop a supportive network of peers and mentors.
Find out who has already achieved what you want to achieve and then get the knowledge that you need to take advantage of the tremendous opportunities that surround us.
4. Take action
In the past those who have prospered during difficult times have had specific knowledge about how to take advantage of the economic conditions and then they took effective action.
The same will happen again this time around. Currently the majority of Australians are sitting it out, saying things like, “I don’t need to take action now, I’m scared.” At the same time a small group of people are taking action. That’s why the rich and financially fluent are getting richer. Nobody has ever got rich by doing nothing.
Currently, some property investors are becoming wealthier than ever because they own the right type of assets and are taking advantage of some of the best deals available in their lifetimes. While others are just sitting it out hoping that it’s going to work out.
Which side are you on?
It’s time to increase your financial literacy by immersing yourself in the tools and knowledge to help you move forward. It’s time to take responsibility and regain control.
Let’s face it, unless you do it yourself, no rescue plan is being prepared for you. The Government is not coming to bail you out, like some governments have done to their banks or certain large companies.
The more you focus on fear, the more afraid you become. The more you focus on obstacles the larger they get. And the more you focus on the doom and gloom headlines, the less time, energy and faith you will have to focus on building your own wealth and prosperity.
So join me and many other successful property investors and become someone who sees opportunities where others see problems. Become someone who seeks growth when others expect collapse. And become someone who sees success when others see failure. I’m not going to participate in the downturn!
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.