Feb 24, 2020
If you’re looking for more money, better success in property investment or other areas of your life, or more wealth, this episode is for you.
I have three messages for you today. We’re going to discuss one thing you’re going to have to change to become a more successful investor – and it’s not what you think.
I’m also going to share what is the right type of property investment for this stage of the cycle.
Then, in my mindset moment, I’m going to explain an important trait of successful people. And if you can pick up on it, there’s no reason why you can’t be successful as well.
The One Thing You Need to Change for Investment Success
One of the first steps in change is changing your thoughts.
How do you think about money, success, and prosperity?
For many of us, our thoughts revolve around fear, scarcity, and limitation.
If you think about fear, scarcity, and limitation – what do you achieve?
Your thoughts lead to your feelings – your feelings lead to your actions and your actions determine your results.
So, money is a result. Wealth is a result.
These occur in your outer world but are determined by your thoughts and feelings – your “inner world.”
It’s not what you don’t know that prevents you from succeeding; it’s what you think you know that isn’t correct that is your greatest obstacle.
The problem is for many Australians their thermostat is not set for wealth.
Firstly, we need to change the way we think about ourselves.
We need to see ourselves as a wealthy person, as a wealth attractor and a wealth creator.
This means we may need to change some ingrained thinking patterns.
Or overcome some negative ways of thinking that have developed as a result of past experiences.
Most successful people all share one critical characteristic – the trait of adaptability.
They embrace change.
They look for opportunities to expand and learn.
Another common characteristic of successful people is that they have a mentor and they belong to a mastermind group.
They hang around other like-minded successful people.
Results change when people change their way of thinking.
And doing things differently first requires thinking differently.
If you change your thinking, you will change your actions and if you change your actions – results.
What’s the right investment for this property cycle?
We’re well into a new property cycle. And with the property market on the move, it’s becoming apparent that more and more investors are looking for the next hotspot.
The problem is that hot-spotting is about short term speculation, not long-term wealth creation.
Most property investors are looking to build an asset base so that one day they can replace their personal exertion income with their property income.
But the key to building a substantial property profile is to use the first property to leverage into your next property, then using those two properties to leverage into more investments, and so on and so on.
And you can only do that by investing in the type of locations that consistently provide long-term capital growth. But by definition, hotspots are not that.
They cool off as quickly as they heat up.
If you’re into investing in short-term trends, being right isn’t what’s important; it’s being right at the right time that counts.
Very few can do that, so the history of investors trying to find the next boomtown is littered with people who get the story right and the outcome wrong.
Instead, I buy in areas that have a proven long-term history of outperforming the average capital growth and that are likely to continue to outperform, because of the demographics of the people living in the area.
Hot spotting is virtually the opposite of this sensible, not-so-sexy, tried and tested system for successfully building a property portfolio.
There are some principles that can be applied whenever you consider investing in real estate, to ensure that you are as comfortable as possible and exposing yourself to the least amount of risk.
Links and Resources:
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Some of our favourite quotes from the show:
“The problem is in terms of wealth creation, it’s not what we know that’s holding many of us back.
It’s what we think we know that isn’t so, that isn’t right, that is holding us back.” – Michael Yardney
“If you continue to do the things you have always done, you’re going to continue to get the results you have always achieved.” – Michael Yardney
“A side effect of doing challenging work is that you’re pulled by the excitement and pushed by the confusion at the same time.” -- Michael Yardney
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