Our current property boom is going to create a whole new generation of wealthy Australians.
But since most people who become involved in a property boom don’t become financially independent, last week I started this special series of podcasts discussing 40 lessons I learned in the last 40 years of property investment to hopefully help make sure that you’re one of the ones who does succeed.
Last week, I shared 20 property lessons, and today I’m going to share the other 20.
40 property investment lessons I learned in the last 40 years – Part 2
Last week, I asked, with the benefit of hindsight, would you have bought an investment property in 1980?
What if I warned you about the recessions, pandemics, and other challenges that were coming?
What I wanted to share with you in this two-part series are the lessons I learned in that time period that made me a better investor.
- No one really knows what’s going to happen to the property markets.
- Don’t listen to who most property investors listen to for investment advice.
- Timing the property market is just too hard. It’s much better to buy the best asset you can afford and hold it for the long term.
- Any property can become an investment property – just kick out the owner and put a tenant in place and it becomes an investment property. But not all properties currently on the market are “investment grade” and will deliver wealth-producing rates of returns.
- Don’t rely entirely on property data – it can be misleading and can be twisted to say almost anything.
- Property investment is part science and part art – you need to understand and interpret data (science) but you also need an on-the-ground perspective to employ that data (art.)
- There are 4 ways you make money out of property: Capital growth, rental income, tax benefits, and forced appreciation or manufactured capital growth through renovations or property development. But these streams of income are not all equal. Tax-free capital growth is the most important.
- Cash flow is important to keep you in the property game, but capital growth will get you out of the rat race.
- You will never get rich from earned income or savings.
- Location will do around 80% of the heavy lifting of your property’s capital growth.
- Be greedy when others are fearful and be fearful when others are greedy.
- Don’t do what most property investors do. The majority of property investors fail.
- Treat your property investments like a business
- Don’t look for fun or excitement in your investing.
- Diversification is for people who don’t know how to invest.
- Having the right mindset is critical to investment success.
- While knowledge is important, successful investors take action.
- There are always risks associated with investing. Don’t be afraid of failing, because the biggest risk is not doing anything to protect your financial future.
- Don’t waste your time worrying. Most things you fear will happen never do. They’re just monsters in your mind.
- Never give up. You will have failures along the way – in fact, I’m a real success at failure, but each time I’m knocked down I get up again. You need resilience to be successful.
- Get a range of my best eBooks and reports at PodcastBonus.com.au
- Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us
Some of our favorite quotes from the show:
“There are too many enthusiastic amateurs out there at the moment offering investment advice.” –Michael Yardney
“You need to make your money work hard for you, even when you’re asleep.” – Michael Yardney
“Everyone does everything with money, no matter how silly it looks, because at the time it makes perfect sense to them.” – Michael Yardney
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