People often ask when is the best time to buy property. Some people believe they should wait in an attempt to try and time the market for the next down-turn. Some people wait for a crash and some wait for the market to show signs of rapid growth and then opt in.
The truth is that most people buy in a bull market where there is safety in numbers and everyone is talking property.
The truth is that the best time to buy property is when you have a deposit.
I have purchased in all markets. Ironically over time, I rarely remember when I purchased; I just focus more on what it is worth today.
Most people are unsure of what they are trying to achieve with investing.
Further, they find it hard to get into the market because they spend everything they earn. They go from pay-packet-to-pay-packet and when they retire they go from pension-to-pension.
The problem is that only 10% of Australians have some sort of a financial plan and 90% of Australians don’t budget.
What separates the rich from the poor are subjective variances. Those who lean more to being rich believe that when bad things happen they can fix them. The poor tend to believe that bad things just happen to them.
The rich work 11 more hours a week than the poor and 50% of that time is spent on creating some sort of wealth for themselves.
The key to creating wealth for your self is to have a plan. It doesn’t matter what book you read on wealth creation they all agree on the one single point; if you cannot save; you will never create wealth for yourself. If you don’t budget, you may not save!
Budgeting is a bit like dieting; if you go off track with your diet, you know the way back to healthy eating. A budget is the same. Dieting over Christmas is hard, and sticking to your budget is even harder. By February we are all back on track again, into our normal rhythm of life. The key is to budget for Christmas and Holidays, so you are never dipping into your surplus savings.
The budget is the key, because if you only ever invest with your surplus dollars, then you will never be under mortgage stress. If you aren’t under mortgage stress and you have a good experience, then you will be most likely to repeat the experience. By repeating the experience, you will slowly but surely build your very own property portfolio.
You see it isn’t just enough that we invest, but we need to invest at a rate faster than inflation, so when we select our assets and park our hard-earned money somewhere; it is safe and grows at a rate faster than inflation.
The simple analogy is that if inflation grows at a rate of 3% per annum, and property is going up at a rate of 8% per annum, then our real rate of return is actually 5%. Because no matter where we park our money, it must grow; or we will go backwards; eaten away by inflation.
Don’t fall into the trap of looking at your money in the bank and thinking it has kept its value; just because the bank balance hasn’t dropped. The truth is that inflation is eating it away in the background.
I have always loved property... it runs through my veins. I actually started out investing in shares. Influenced by my friends. I sunk my entire bonuses for the year of 1988 into the share market. I purchased around July of 1988. You know what happened in October 1987... the stock market crashed and my $2000 was quickly reduced to $400. It actually took me two decades to have confidence in the stock market again.
It’s well know that property suffers less up’s and down’s and for many people there is the security of the bricks and mortar.
This is why property is such a good investment, particularly when we know that property and shares perform about the same over a 10-15 year investment. It is usually accepted that it is a much easier journey with property than shares.
I have owned more than 46 properties in my lifetime, and today I have a substantial portfolio allowing me to live on a rental income in my retirement.
My budget and my property mentoring has worked for over 2000 Australians. Register now for one of my free seminars and book.
At Solid Investment Property, we can assist you to take the confusion out of building a property portfolio. We like to start with the household budget, then assess your current assets and liabilities to truly understand your current financial situation.
For more information, contact us or register for our next Property Investment Seminar.
Lynne Wilton, Founder
Lynne purchased her first home over 28 years ago. Over time this has grown into an extensive portfolio of both residential and commercial investments.
Today Lynne runs a successful Property Mentoring business where she offers seminars throughout the year and invites you to join her Mentor
During this year we have bought two investment properties through Solid and we have been absolutely ecstatic about it
From the get go I felt that I was in safe hands with Lynne and her team, I recommend everyone to contact Solid and get that same piece of mind that I have.
I bought a property through Lynne... It just went so smoothly. Lynne held my hand all the way through it. I'm so happy with the apartment, it rented so quickly and now it's bringing a lovely income. Thanks Lynne!
Lynne lives her life with care, intelligence and passion and she brings that to understanding who you are, where you want to be and giving you the guidance to get there. Your success is her success.
Lynne and her team really down to earth, professional, know what they’re talking about and very much having their clients interest right up front and very much at heart. The budgeting process that Lynne has taught us has really made a difference to our personal finances. We've got more money now, without making more money, and finding the right property for us was the focus for Lynne.
Lynne has a passion to see people realise their dreams as far as property ownership, But not to their demise… In fact they’re [solid] are very comfortable telling you here’s what you need to have, have a solid plan… It’s the confidence, the caring about your dream and your vision for property ownership
It was very easy for us to go with the process right through to the successful settlement of our first property. We’ve had 2 and now 3 investment properties...We love her team and thoroughly recommend her and her team to anyone.
Solid has been very reliable, very trustworthy and if we were in the market for a third property we would certainly go with them.