Jun 21, 2021
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.
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
- No one really knows what’s going to happen to the property
- Don’t listen to who most property investors listen to for
- 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
- 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
- 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
- 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
- Having the right mindset is critical to investment
- While knowledge is important, successful investors take
- 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.
Shownotes plus more here:
40 property investment lessons I learned in the last 40 years –
Some of our favorite quotes from the show:
“There are too many enthusiastic amateurs out there at the
moment offering investment advice.” –Michael
“You need to make your money work hard for you, even when you’re
asleep.” – Michael
“Everyone does everything with money, no matter how silly it
looks, because at the time it makes perfect sense to them.” –
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