Regional v metropolitan: What goes into choosing where to invest?
When deciding where to invest, the first choice is one of the most significant: do you buy in a regional hotspot or metr...
Let me ask you, why exactly do you want to invest in property? And please, spare me the trite postcard euphemism of “financial freedom”.
A lot of people say that is what they want, yet have spared literally no thought to what that even means. And herein lies just part of the problem.
You see, the biggest difference between creating success in your life, be it through property investment, business, relationships or anything else… is mindset.
Now, you might be thinking “Oh, here we go, some woo woo ‘Dream it and you can have it’ nonsense”... but alas you are wrong.
What I am talking about is taking ownership of yourself, your outcomes and your destination in a real, meaningful way.
You see, I am lucky enough to have literally dozens of conversations with investors every week, at various stages of their journey.
Some, just wanting to light their fire for the very first time and get started. Some, already in the top 1 per cent of investors nationwide.
And yet… the conversations are almost always the same.
Them: “I want to build a property portfolio.”
Me: “Awesome! So, specifically, what are you trying to achieve?”
Them: “Financial freedom.”
Me: “Okay, tell me what you mean by that.”
You see, very few people have a clear picture in their head of what they want, when they want it, or why they want it. And this is unfortunately, where so many people go wrong.
Because without knowing EXACTLY what you want your destination to be, it is almost impossible to understand the best path to get there.
As we all know, there is so much advice out there. So many different strategies, so many different ideas, so many different options.
It is easy to become overwhelmed by choice, and make hasty decisions without ever really considering: “Will this action move me closer toward my end goal?”
Most people haven’t mapped out what that destination looks like, and simply revert to a “buy and hope” strategy, which seldom ends well.
It is this process which binds 90 per cent of property investors to never progress past owning two properties.
However, you would be mistaken in thinking that this is the plight of early stage investors only.
I recently had a conversation with a “one-percenter” who, when prompted, also quipped with the feeble “financial freedom” line… yet after only two minutes of conversation it dawned on him that he had actually already achieved that but was so paralysed by this idea of “success” that he simultaneously didn’t realise he had already achieved his goal… and was also stuck in an anxious panic with no idea how to move forward.
You see, when we dug a little deeper though, we uncovered a bit more about his “why?”
Yes, he now realised he had reached his personal finance goals, but now what he wanted was the time, money, and freedom to start a Greyhound Rescue Center.
His biggest roadblock: Fear. He didn’t know how to take the next step, and was scared of “failing”.
Boom. There we go. Now we have something to work with.
Here is the thing… there is no right or wrong with your “why?”. There is no “better dream” or “right outcome”... there is only “your outcome”.
Which is why it is critical to understand your two states:
a) Where you are now
b) Where you want to be
Because without first understanding that, questions like:
Should I buy an apartment?
Should I negatively gear?
Should I buy a home or invest?
New build or existing?
Cashflow or growth?
Are all completely irrelevant…
Okay, got it… but this process can be quite overwhelming to some people.
So, here are four actionable steps to help you get from where you are now, to where you want to be:
Either by yourself or with a loved one, take some time to sit and think. Cast your mind forward 10 years and ask:
“How do I see myself?”
“Where do I see myself?”
“How do I spend my time?”
“What is bringing the most joy into my life?”
“How am I bringing joy into the lives of others?”
Of course, there are many other questions you can ask but the point here is to start to create a mental picture – a destination of where you want to end up.
Now, you need to distil this in some way, that you can always refer back to. This could be a vision board, a mission statement, an affirmation, a detailed plan on how to go from where you are now, to where you want to be.
Whatever it is, it needs to work for you, and will serve as a lighthouse on your journey to help guide your every step.
The world’s most successful investors, entrepreneurs and business people all share a common trait. They understand the value of building a team.
Every expedition to greatness that ever succeeded was a team effort, and required the combined skills, guidance and experience of an array of different people in order to make it work.
Your expedition to greatness is no different, and you must build a team of people who believe in you, and your vision. They must be as dedicated to your vision as you are.
“Alone we can do so little, together we can do so much.” – Helen Keller
Nothing will kill a pursuit of greatness like inaction. And this is the biggest stumbling block to most investors – fear, inaction, and complacency.
No one ever scaled Mount Everest by thinking their way to the top or by “doing it later”.
The key here is not to look at every step, but to look at the next step.
“The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.” – Mark Twain
Remember, if you don’t know whether or not you are doing the right thing, go back to your vision and ask: “Will this move me closer to my goal”, and then, ask your team: “Will this move me closer to my goal”.
If the answer is yes? Swallow your fear and take action.
No matter what stage of the journey you are on, periodically take time to review your empire. Assess the decisions and the progress you’ve made.
Take time to go back over your vision and make sure you are still in alignment with that purpose.
Review any issues that you’ve had that have affected your path to that vision. Correct course as required.
Then, keep the momentum up. Continue to take action over, and over again.
“An object at rest stays at rest and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.” – Newton’s first law of motion
Now, if you follow these four steps, don’t be surprised if something strange begins to happen. You may feel a heightened sense of purpose, clarity, and happiness. You may even experience less signs of stress, even though you may find yourself facing new and greater challenges.
This is normal. These are the hallmark signs that you are succeeding in your quest for greatness.
I can’t wait to hear about your adventure.
By Glenn “Goose” McGrath, dashdot
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.