The beginning of the year is a good time to reflect on the last year and how things went, as well as consider what you want to do in the new year.
In today’s episode, I’ll chat with Ken Raiss about getting your kids into the property market. If you don’t have kids, don’t worry – there’s good information in there for you too.
I’ll also answer a listener’s question about the importance of past performance and how it relates to future performance of a property or location.
Before all that, however, I’m going to start with some of the things I wish I’d known earlier in life.
9 things I wish I knew back then
1. Become the pilot of your life
Everything changed for me when I learned that my thoughts lead to my feelings, my feelings lead to my actions and my actions lead to my results. This meant my inner world (my thoughts and feelings) controlled my outer world (my actions and results)
The turning point was when I realised that I was responsible for all the things (both good and bad) that happened to me. I then became the pilot of my life and not a passenger.
And even if it’s not true, I know I act differently, and my results are better because I believe I’m responsible for everything that happens to me.
2. Keep your eye on the prize!
When I was young no one taught me about the Reticular Activating System, that part of your brain that only lets you see in your surroundings what you focus your thoughts on. It pretty much always helps you to find what you are looking for.
Setting goals and regularly reviewing them is one way to keep your focus on what’s important and to help you take action that will move you closer to toward where you want to go.
3. Your attitude changes your reality.
It’s the old “is the glass half full or half empty” story.
When things happen in life that we don’t like, we can either choose to see them as a problem or as a solution waiting to be discovered.
It took me quite a while to discover that if you change your attitude, you actually change your reality.
When you have a positive attitude instead of a negative, one you start to see things and viewpoints that were invisible to you before.
4. You must give to receive.
As children, we are told that the joy is in giving rather than receiving.
But as we become adults, for many life becomes about what we can get out of someone or something.
However, if you want to increase the value you receive (be it money, love, kindness, opportunities) you have to increase the value you give.
Because over time what you get is in proportion to what you give. While it would be nice to get something for nothing, that seldom happens.
5. Be Pro-active rather than reactive
There seem to be 3 types of people:
- Those who make things happen
- Those who watch what happens, and…
- Those that sit and wonder “what just happened?”
Be in the first group and always be on the lookout for opportunities.
6. Make your time count!
How often have you heard someone say: “time flies”? Indeed, it does, so use it wisely!
Just as you are careful about how and where you invest your money, you should also be careful as to how you invest your time.
The Pareto Principle says that 80 percent of the value we receive comes from just 20 percent of what we do with our time.
So what things do you spend your time doing that take a lot of energy yet deliver few results?
7. Mistakes mean growth!
Sometimes negative experiences, mistakes, and failures can be even better than a success because they teach you something new which another win could never teach you.
However, we are often so driven to get things right that we fail to see the value in the things we get wrong.
Instead, we spend our time wishing we had done it differently.
Or not doing anything at all because the fear of making mistakes paralyzes us.
If you get it wrong, learn from your mistake and make it count by doing it differently next time.
One “failure” can – with time – help you create many successes.
8. Don’t waste your time worrying
Most things you fear will happen, never do.
They are just monsters in your mind.
And if they do happen then they will most likely not be as bad as you expected.
So now when confronted with a challenge I put things into perspective by asking myself:
- What’s the worst that can happen?
- What’s the best possible outcome? And…
- What the most likely thing that’s going to happen
This means you shouldn’t take things too seriously because that which seems like a big problem today, you may not even remember in five years.
So, lighten up a bit. Time spent worrying is time that could be spent identifying opportunities and taking action.
9. Don’t compare yourself to others
When you compare yourself to others you let the outside world control how you feel about yourself.
Instead strive to become the best you can be and look at how far you have come, what you have accomplished and how you have grown.
In conclusion, we live in the best country in the world and at the best time in history.
Appreciate what you have and enjoy the journey of life because an attitude of gratitude is a simple way to make yourself and those around you feel happy.
Options for Helping Your Children Get Into the Property Market | Ken Raiss
- Guaranteeing the Loan – if you’re going to do this, be cautious. Limit the guarantee to only the amount the bank requires to give your child the loan, not the entire loan amount.
- Gifting the Money – If you choose this option, keep in mind that the money you give them will become part of any matrimonial assets, which means that in a divorce, it could go to the in-law.
- Loaning Your Child Money– Be careful of the way that money is presented in the loan application, as it could impact serviceability.
- Gift a Property – If you own a property yourself or jointly, changing the ownership will trigger capital gains tax and stamp duty.
- Use a Trust – With this method, you could buy a property now that you could gift to your child at a later date without triggering tax consequences. A lineage clause in the trust can help keep the asset in the family line in the event of a divorce.
Links and Resources:
MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne and Brisbane
Some of our favourite quotes from the show:
“Those who’ve jumped onto a bandwagon of short-term growth – they’ll find that this year’s hot spot will become next year’s not spot.” –Michael Yardney
“In my mind, it’s more important to look ahead than look backward.” –Michael Yardney
“You’ve got to have the right structures at the start to ensure that your gift keeps on giving.” –Michael Yardney
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