I was recently asked to put together a list of simple rules that distilled my property investment philosophy, so in today’s episode, I’ll give you 9 simple property investment rules to go by. In my mindset moment, I’ll share 2 inspirational quotes that have helped me and that might be helpful for you as well.
Then we’ll discuss some of the differences that separate rich people and poor people.
Hopefully, by the end of the episode, you’ll be a little wiser when it comes to money, property, and success.
9 Property Investment Rules
Become financially fluent – You need to understand how money, finance, the property market, and the economy work.
Adopt a proven investment strategy – Real estate is a high-growth, low-yield investment, so it’s best to invest for capital growth.
Not every property is investment property – you want properties that are going to out-perform the averages in capital growth.
Demographics drive markets – Demographics are more important than short-term ups and downs when it comes to shaping our markets.
Real estate investing is a game of finance with some properties thrown in the middle – property is a long-term game, so you’ll need financial buffers along the way.
The economy and our property markets move in cycles – each boom sets up the next downturn, and each downturn sets the stage for the next boom
Follow my 6 Stranded Strategic Approach and only buy a property – properties should:
Appeal to owner occupiers
Be priced below intrinsic value
Have a high land to asset ratio
Be located in an area that continually outperforms the averages
Have a twist that adds value
Come with the potential to manufacture capital growth
Don’t focus on bargains -- Properties that no one else wants today will probably be the type of property that no one else will want in 5 years’ time.
Allow for an X-factor – unforeseen events can be positive or negative, but they’re sure to happen.
10 major differences between rich and poor people
If you’ve been listening to my podcast you’d realise that I believe wealth is a choice that we must all make. Wealth is a mindset
Bill Gates once said, "It's not your fault if you were born poor, but it's your fault if you die poor."
In Australia, there's no reason why you should live in poverty.
Wealth is waiting for you, but you have to make up your mind if you want it in your life.
For years I studied the rich then I became one of them, and for the last decade I’ve mentored over 2,000 people to become rich
Here are 10 of the major differences I’ve realised that separate rich and poor people:
1a. Poor people are skeptical.
I distinctly remember a nephew of mine saying, "Those plumbers are a rip-off! They'll charge for things they haven’t done.
He thought that everyone unjustly wanted his money and that everyone is out there to get him. Do you know someone like that?
1b. Rich people are trusting.
Rich people have the tendency to trust those they meet (within reason) and give others the opportunity to be themselves.
2a. Poor people find fault.
People who are poor are always looking for the problems instead of the solutions. They end up blaming their environment, circumstances, jobs, weather, government and will make an extensive list of excuses as to why they cannot be successful.
2b. Rich people find success.
Rich people understand that everything happens for a reason.
Rather than letting life happen to them, they take direct action and make big things happen. They put aside all the excuses and eradicate their blame lists because they have to do what must be done.
3a. Poor people make assumptions.
When it comes to knowing the truth, poor people often make assumptions.
If they want to reach out to a someone, they might say, "They probably don't have time to talk to me." Instead of checking the facts or asking questions, they never make a true attempt when it comes to getting what they want.
3b. Rich people ask questions.
Many rich people ask the question, "What if?"
For instance, "What if I wrote an email to that person and he or she answers?" If you begin to ask questions, you will save yourself a lot of hassle.
The power is in the hands of those who ask the right questions. Then don't answer your questions, question your answers.
4a. Poor people say, 'they' and 'them.'
Have you noticed how the people at the checkout at the supermarket say, "They never have enough cashiers. I don't know what's wrong with them." Obviously, these people don’t take any ownership and responsibility for their job. They certainly separate themselves from the job that was paying her.
4b. Rich people say, 'we.'
At one of my favourite restaurants, the server said, "We take great delight in cooking our steaks in real fire."
Her sense of pride and ownership stimulated me, which allowed me to give her an honourable tip. Surely, you will be rich when you invest more into what you believe in
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