I was asked to put together a list of simple rules that distilled my property investment philosophy, so in today’s episode, I’ll give you 9 simple property investment rules to go by.
In today’s mindset moment, I’ll share 2 inspirational quotes that have helped me and that might be helpful for you as well.
Then we’ll discuss some of the differences that separate rich people and poor people.
Hopefully, by the end of the episode, you’ll be a little wiser when it comes to money, property, and success.
9 Property Investment Rules
- Become financially fluent – You need to understand how money, finance, the property market, and the economy work.
- Adopt a proven investment strategy – Real estate is a high-growth, low-yield investment, so it’s best to invest for capital growth.
- Not every property is investment property – you want properties that are going to out-perform the averages in capital growth.
- Demographics drive markets – Demographics are more important than short-term ups and downs when it comes to shaping our markets.
- Real estate investing is a game of finance with some properties thrown in the middle – property is a long-term game, so you’ll need financial buffers along the way.
- The economy and our property markets move in cycles – each boom sets up the next downturn, and each downturn sets the stage for the next boom
- Follow my 6 Stranded Strategic Approach and only buy a property – properties should:
- Appeal to owner occupiers
- Be priced below intrinsic value
- Have a high land to asset ratio
- Be located in an area that continually outperforms the averages
- Have a twist that adds value
- Come with the potential to manufacture capital growth
- Don’t focus on bargains — Properties that no one else wants today will probably be the type of property that no one else will want in 5 years’ time.
- Allow for an X-factor – unforeseen events can be positive or negative, but they’re sure to happen.
10 major differences between rich and poor people
If you’ve been listening to my podcast you’d realise that I believe wealth is a choice that we must all make. Wealth is a mindset.
Bill Gates once said, “It’s not your fault if you were born poor, but it’s your fault if you die poor.”
In Australia, there’s no reason why you should live in poverty.
Wealth is waiting for you, but you have to make up your mind if you want it in your life.
For years I studied the rich then I became one of them, and for the last decade I’ve mentored over 2,000 people to become rich.
Here are 10 of the major differences I’ve realised that separate rich and poor people:
1a. Poor people are skeptical.
I distinctly remember a nephew of mine saying, “Those plumbers are a rip-off! They’ll charge for things they haven’t done.
He thought that everyone unjustly wanted his money and that everyone is out there to get him. Do you know someone like that?
1b. Rich people are trusting.
Rich people have the tendency to trust those they meet (within reason) and give others the opportunity to be themselves.
2a. Poor people find fault.
People who are poor are always looking for the problems instead of the solutions. They end up blaming their environment, circumstances, jobs, weather, government and will make an extensive list of excuses as to why they cannot be successful.
2b. Rich people find success.
Rich people understand that everything happens for a reason.
Rather than letting life happen to them, they take direct action and make big things happen. They put aside all the excuses and eradicate their blame lists because they have to do what must be done.
3a. Poor people make assumptions.
When it comes to knowing the truth, poor people often make assumptions.
If they want to reach out to a someone, they might say, “They probably don’t have time to talk to me.” Instead of checking the facts or asking questions, they never make a true attempt when it comes to getting what they want.
3b. Rich people ask questions.
Many rich people ask the question, “What if?”
For instance, “What if I wrote an email to that person and he or she answers?” If you begin to ask questions, you will save yourself a lot of hassle.
The power is in the hands of those who ask the right questions. Then don’t answer your questions, question your answers.
4a. Poor people say, ‘they’ and ‘them.’
Have you noticed how the people at the checkout at the supermarket say, “They never have enough cashiers. I don’t know what’s wrong with them.” Obviously, these people don’t take any ownership and responsibility for their job. They certainly separate themselves from the job that was paying her.
4b. Rich people say, ‘we.’
At one of my favourite restaurants, the server said, “We take great delight in cooking our steaks in real fire.”
Her sense of pride and ownership stimulated me, which allowed me to give her an honourable tip. Surely, you will be rich when you invest more into what you believe in.
5a. Poor people want the cheapest way.
Have you noticed how poor people tend to look for the cheapest items, bargains, free advice. Unfortunately, cheap is always cheap.
5b. Rich people want the best way.
Rich people will go the extra mile to find quality – they recognise that price is what you pay and value is what you get.
They don’t limit themselves to price and often seek service while they shop. They’re prepared to pay for mentors, coaches, and advisors
6a. Poor people think money is more important than time.
Millions of people all over the world are trading their precious time for money. You can always get $500 back, but you can’t get 50 hours again. Nonetheless, the majority of people trade time for money and never realize their true potential because of it.
6b. Rich people know that time is more important than money.
Rich people never trade time for money. Moreover, they seek fulfilling experiences that dramatically alter their lives. Their careers are more focused on doing what they love and helping others, instead of merely clocking in for a meager paycheck.
7a. Poor people compete.
When a poor person sees an opportunity, they find out how others are doing it and copy them.
Most often, they never consider another way of doing it. Instead, they settle in the belief that doing what others are doing is the best thing they can do for themselves.
7b. Rich people create.
On the other hand, the rich like to think outside the box and find new opportunities
8a. Poor people complain, condemn, and criticize.
Most poor people have learned how to be poor from their parents. Their family members have conditioned them to believe that everything is “wrong” instead of right. If you’ve ever heard someone ask, “What’s wrong?” you’ll know what I mean.
8b. Rich people praise and enjoy their blessings.
Rich people know that they have many privileges and they don’t take it for granted.
Because of their appreciation of gifts, love, and circumstances, they are able to generate more.
9a. Poor people seek amateur advice.
They often listen to the opinions of others and seek approval from acquaintances. They believe almost everything they hear without questioning authority. They accept opinions as facts and prohibit themselves from doing research once satisfied with an answer.
9b. Rich people seek expert advice.
Those who are rich have learned to think for themselves.
If they cannot figure out something, they seek expert advice. Usually, they pay for the advice and are given a wide variety of options. They learn the experts only make suggestions, which means that they aren’t particularly confined to a specific action.
10a. Poor people have big television sets.
Poor people use their free time to avoid the art of thinking (which is the most challenging task) and zone out to what many have conformed to believe is “entertainment.”
10b. Rich people have big libraries.
Wealthy people are educated and read a lot of books. They use their knowledge in a way that benefits them.
Instead of drifting off in random activities, they seek to get within their minds to understand themselves, others, and the world in which they live.
To get a true perspective on how to become rich, you must study rich people. After all, you become what you study. If you’re currently surrounded by people who aren’t yet rich, just do the opposite of what they do. Soon enough, you’ll be able to reach your financial dreams!
Links and Resources:
Metropole Property Strategists
Rich Habits Poor Habits
Michael Yardney’s Mentorship Program
National Property and Economic Market Update 1 day Trainings
Some of our favourite quotes from the show:
“It’s really critical to understand if you’re being impartial advice, or if you’re being taken advantage of by the many vested interests out there after your money.” –Michael Yardney
“Trying to make something perfect actually prevents us from making it just good.” –Michael Yardney
“What if what you know is only one of the many possibilities, and there are some better ones, other ones, different ones? What if what you know could be further enhanced by what other people know? What if what you already know is actually wrong?” –Michael Yardney
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