Property Investment Rules For Troubled Times

https://www.youtube.com/watch?v=_1t6KrrDBQI If recent times have shown us anything it's that troubled times can hit and we need to know how to successfully invest during these times. Today I read through the property investment rules to keep in mind in troubled times. Book a Free Property Strategy Session Advanced Suburb Research Course Property Update Article: https://propertyupdate.com.au/property-investment-rules-to-keep-in-mind-in-troubled-times/ 0:00 - Introduction1:00 - Troubled times show who the real great property investors are2:50 - #1 Become financially fluent4:00 - #2 Adopt a proven investment strategy6:44 - #3 Not every property is investment grade8:30 - #4 Don't believe the hype11:15 - #5 Location does the heavy lifting12:30 - #6 Demographics drive markets12:57 - #7 Real estate investing is a game of finance14:21 - #8 The economy and our property markets move in cycles15:33 - #9 Follow my 6 Stranded Strategic Approach17:40 - #10 Don't focus on bargains18:14 - #11 Allow for an X factor18:49 - What did we learn from this20:08 - What I would add to this list Recommended Videos: 15 Habits Self Made Millionaires Have 2 Properties to Financial Freedom The $1,000 Project Book Review (By Canna Campbell) Transcription: Ryan 0:00In recent times have shown us anything, it's that troubled times can hit. And we need to know how to invest during those troubled times. So today, I'm going to read through an article from Michael yard news website, property update.com.au. On the property investment rules to keep in mind in troubled times, we're going to go through this article talk about some of the things that they say, I'll comment on it, we'll discuss it together. And we'll try and learn together, I did a previous one of these, talking about the 15 habits of self made millionaires. I really enjoyed it. I learned a lot from it. And I know a bunch of you did, as well. So let's go through this. Let's learn together. And let's work out okay, what are these property investment rules to keep in mind during the troubled times, okay, so they start by saying that everyone seems like an investment genius, when the property markets are booming. But when times gets tough, it's important to really know what you're doing. I saw an example, I heard an example of this, I think it's in the book, great by choice by Jim Collins. It is in the book, it's one of my favorite books of all time. And he talks about this idea of companies that succeeding in troubled times. And he uses this metaphor of if you have just a regular person going for a hike versus someone who is a world class hiker, adventurer, mountain climber survivalist on the same hike. But let's say that it's an extremely pleasant, sunny day, no issues anything like that, would you notice the difference between the two, you might notice a bit of a difference between the gear or the way they hold themselves when they walk or their fitness level. But really, they're both going to look like great hikers. But when the storm hits, and when you're in that emergency life or death situation, that's when the skills of the advanced mountaineer adventurer are going to come into play and the everyday person, we're probably going to die in that situation. But that's where it will come out. So when you got the market that's booming, you know, everyone looks like a successful investor. I just bought three properties in Sydney in 2012, let's say as an example. And you know, in 2017, you're looking like a genius. But let's say you bought those same properties in 2017, in Sydney, and the market went down for the next 18 months, you know, you're not looking. So genius. Obviously, with everything that's happened in the market due to COVID-19. Things have, you know, really kind of looking at troubled times for a lot of Australians. So saying here, I've learned not to change my strategy, every time the economy or our property markets get challenged, I invest for the long term and don't get thrown off by the good or bad phases. So let's go through some of these rules. Number one, become financially fluent. The secret to financial freedom is to spend less than you earn, save the balance, then invest widely, then wisely invest your savings in growth assets. Get mentors become financially for fluent. This is I think this is really important. And something that's not talked about enough. It's definitely something that I learned from Robert Kiyosaki his books, which is there's a lot of language around finances. And there's a lot of conceptual understandings around finances. Getting good at managing finances, getting good at investing is a skill. And it's one that we don't learn in school, it's one that we don't learn on our career path. It's one that you have to learn yourself. And by educating yourself listening to things like listening to today, reading articles like this, following other podcasts, practicing it yourself as well, getting mentors, all of that because to become financially fluent, is super important. And the more you learn, and the more you understand about finances, market cycles, investing, the more money you can make easier, with less risk. So definitely think being financially fluent, is super important. Number two is adopt a proven investment strategy. Remember that 90% of property investors never get past the first or second investment property. So don't follow the herd don't follow the strategy that most property investors follow. Now, I was scanning through this before. And I found this quite amusing because they say, you know, 90% of people don't get through the first or second one. So don't follow the herd don't follow the strategy most property investors follow. And then the next sentence is, you know, I recommend a capital growth investment strategy, which is what 90% of property investors do is a residential capital growth investment strategy. So they say, don't follow the herd, but follow the herd. So I don't know if I'm down with that. They say well, cashflow is important to keep you in the game. It's capital growth that will get you out of the rat race. I just think this is so narrow and small minded to say this, because it's putting capital growth and cash flow in life. either or baskets you can either get cash flow or you can either get capital growth why not get both why not get both and they're saying you can achieve you know financial freedom through cash flow and it's just completely untrue you can even in properties where you don't get capital growth it's purely a cash flow play you can actually invest in that way to achieve financial freedom it may not be as quick as landing on a property that is in a capital growth area but you can definitely do it so i just it frustrates me when people write articles like this and they say you know cash flows not a thing that you can only you know live off the capital growth and it's just it's just untrue and so i definitely agree with get a proven investment strategy one that you can implement within your skill set so development building massive high rise apartments is a proven investment strategy people have made it work but is that within your skill set probably not but there are some simple proven investment strategies within your price range in your skill set so get one of those i like the two property to financial freedom strategy because you're combining capital growth and cash flow so you're purchasing in a good suburb in a metro market like brisbane that's likely to grow in the future in the long term but you're also getting a good rental yield off the bat and then if you want you can go and build a granny flat on that to get a better rental yield a positive cash flow your tenants then pay off your property for you basically and then you own the property outright in a good growth area and you can live off the cash flow so you know 90% of property investors aren't doing that so that is what i would do and it just annoys me number three not every property is investment grade i would definitely agree with this there are millions of properties on the australian market and not all of them are investment grade where you can just buy it put a tenant in and have success with it you're going to want to find the best properties that you can in the best markets that you can sell it's not just about going out there and buying any property in any market that looks good location is going to be super important you know you're going to need to look at that and research that understanding your market cycles understanding your suburbs understanding the rentability of it is going to be important so yeah not every property investment out there is a good one in fact a very small sliver of the market is going to be good for you and what's good for one investor might not be good for another so it's very tailored to you and to your strategy as well now if you don't currently have an investment strategy then we do offer free strategy sessions where you can get on the phone to one of the team over at pumped on property and talk to them about your situation where you're at where you want to be what's holding you back and they can help guide you to create a property investment strategy that's right for you that's a complimentary session if you go to onproperty com.