4 High-Level Property Investing Mistakes People Make

https://www.youtube.com/watch?v=ywjJldWub2k There are some really big problems with the way most people invest and I've definitely made these problems myself. If you can avoid these big problems then you can lower your risk and achieve success faster. Book a Free Strategy Session 1:10 - 1. Having No Investment Strategy At All6:09 - 2. Bad Timing In The Market10:29 - 3. Bad Cash Flow14:23 - 4. Not Doing Anything To Increase The Productivity Of Your Asset Recommended Videos: How To Invest In Property During a Recession Ray Dalio's Video on Debt Cycles Transcription: Ryan 0:00There's some really big problems with the way most people invest. And you may be making these problems yourself, because I know that I've definitely made these problems in the past. But if you can avoid these, then you can really help to set yourself up for success in the future, and achieve your goals faster. So in this video, we're going to talk about these big four problems, and how you can avoid them in your life and how you can do better than I did in the past. So Hi, I'm Ryan from OnProperty, helping you achieve financial freedom. And with everything that's happening in the world at the moment, people can get so focused on certain aspects of things that they just forget about everything else. One example, people get so focused, and I've definitely done this, she gets so focused on the economy, and what's the global economy doing in the local economy going to be doing that you actually forget about your own personal economy? And what am I doing to actually improve my own personal economy? That's a huge mistake that I made. But let's get into it these four big mistakes. So the first one is having a bad strategy, or in most people's cases, it's just actually having no strategy at all. So no end point. So a lot of us think about investing and they just think about, I want to make heaps of money. Yeah, I want to make money. Let it rain, baby. And look, I have done this in the past, and often going into new business ventures that can sometimes be like this investing in cryptocurrency, I lost money thinking like this. And this one, I think, is probably the biggest mistake. Because if you don't have a long term strategy, it's very hard to actually get to where you want to go. And we get so swayed by people call it shiny object syndrome, where you're like, Oh, this new fancy strategy. And then you do that for a little bit. And you're like, Oh, this fancy strategy. And it's about getting good at something and just rinsing and repeating it, that really allows you to lower your risk and increase your chances of return as you build up your skills in that area. But if you have no strategy and no destination, then you have no way to objectively look at these potential investments, and whether or not actually going to get you to where you want to go, and whether or not they'll line up with your timeline and line up with your risk profile. So for me, I guess in my own strategy, I've got both the short term, which for me is business. And then I've got the long term, which for me is property. And so looking at the goals and looking at the short term, how much money I want to make through my business, I look at the investments that I make there in terms of content creation article writing the money that I invest, and think about what is the return going to be on that? What is the risk like, and then I track that on a short term basis. But I really have some short term goals there, as well as longer term goals for that as well. But then if I look at long term in my life, I want to invest in property to achieve long term success. And for me, that is 15 to 20 years down the track, I'm in my early 30s. Now, so you're looking at late 40s, early 50s, where I want to be completely financially free through my property investments. And what I want to do is actually invest in a way that is mostly passive. So in the beginning, I'm happy to spend time building out my portfolio, but then I just want it to kind of takeaway and pay itself off over time. So I'm not actively working for those 15 or 20 years in order to achieve that financial freedom. So for me, I've got that timeline in place, I've got that goal in place, I've got that income goal, and then I can look at Okay, what strategy will help get me there, which for me, is those two properties to financial freedom strategy. And to purchase those properties, build granny flats to get the extra cash flow, and use that cash flow to pay off those properties, and eventually live off the rental income that those properties generate for me. So I've got my end goal in mind, I've got my financial goal. And then I've developed a strategy that I believe is going to get me there with minimal risk because I've got the cash flow coming in that I can then see through the different markets that will occur in that time. markets that boom markets that bust markets that stay steady. I've got my plan, acquire those properties, build the granny flats, get the rental income and maximize that and pay off those properties as quickly as I can. Pretty simple strategy. Because I've got a plan I've got a goal in place. So if you don't already have a plan and if you don't already have a goal, that's probably where you need to start. And if you need help actually working out okay, I'm here. This is where I want to be financially or this is my property goals. How do I get there? Or what should my property goals even be? Then we do offer free strategy session so if you go to onproperty com au forward slash strategy you can learn more about those sessions over there you can book in a time that suits you to get on the phone with some on one of the team over at pumped on property and to talk about your situation where you're at and where you want to be and get clear on a strategy to get you there as well as your next step so again go to onproperty com au forward slash strategy if you need help with that but that's the biggest mistake i think is a bad strategy or no strategy or a strategy that doesn't line up with who you are and where you want to be so it's great to say i want to be a billionaire but if you're actually living consciously and think about your values and my values actually time with my family going to sports games taking my kids surfing spending time away with them does that line up with being the amount of work you need to put in to be a billionaire and the time you need to spend away from your family probably not and so getting conscious and getting really clear on what your values are and a goal and a strategy that will line up with those values which is what me and ben called conscious investing is really important in that part as well the second big problem that people make is bad timing in the market now property swings happen we have booms we have vast economic zones happen we have booms we have bass is basically impossible to pick the exact timing of things no one out there could have really picked the exact timing of a virus that would hit the entire world and cause this bull run that's been happening for the last 11 or 12 years to come to an end and to see the stock market crash by i think over 40% now so no one could have predicted exactly when that was going to happen but we could predict that there was a recession that was jus and we just were waiting for the trigger that would actually cause that so i've been talking about the coming recession for over a year now so have a lot of economists as well you can start to see those sorts of things you can never pick it exactly but you can start to see when it's going to happen look at the property market in sydney and melbourne back in 2016 i was thinking this property market is too hot right now it's crazy this can't continue to go on that was february 2016 i started saying that and then it wasn't until mid 2017 for sydney or late 2017 for melbourne where those markets actually hit that peak and started to decline and went through the next 12 to 18 months of decline you could see you could see that it was coming but you can never actually pick your time exactly but even just having an idea that these cycles and these timing exists is something that i didn't know a couple of years ago and i got into cryptocurrency one of the worst times it was after the boom and it had gone down and so i started investing on the way down so some of my purchases in the beginning were a really high price and then it kind of bottomed out and i started learning real quickly about market cycles and then the next purchases i made work towards the bottom of that cycle obviously that moves a lot faster and is higher risk but it was also a great lesson for me in a very short period of time don't pick the wrong cycle don't jump in and get fomo because you're scared you're going to miss out market goes in cycles and there's runs that can last years and then crashes that can happen in just weeks or in just months and you can see 40% wiped out of the stock market in just a couple of weeks instead of buying at the end of a 10 1112 year run oh i don't want to miss out in start to see okay this has been running for a long period of time can this continue into the future maybe i'll wait for crash here and then when the crash comes thinking okay it's not a risk free time to invest the crash could still go further but it's less risky because you're starting to see the bottom of that cycle