Investor William Leung shares one of the most effective ways to achieve success in investing is also one of the simplest: ”Just don’t be stressed.”
Since beginning his property investment journey ten years ago, he has learned to treat it as a business instead of a hobby, taking away any “emotional factor” when making decisions for his portfolio.
According to Smart Property Investment’s Phil Tarrant, property investment essentially lets anyone become a business owner, but not in the traditional sense of the word.
He said: “You are the master of your own destiny when you're a property investor.”
“The harder you work, the more you educate yourself, the more time and attention you spend [on] it, the more sophisticated your thoughts become, the better investor you become, and, therefore, the [greater the] output [you get],” Phil explained further.
William made his first purchase in March 2007—a two-bedroom unit in Chatswood worth $500,000, which is currently valued at over $1,000,000.
This was followed by property purchases in Bligh Park, St. Mary’s, Runaway Bay in Queensland, Surfers’ Paradise, Berriedale, Ashmore, Kippa-Ring, and Bridgewater.
While some of the properties have seen remarkable growth over the years, there are also assets that remain quite stagnant in terms of equity, cash flow, and capital growth.
However, this does not deter William from continuing his property investment journey.
The property investor explained: “The portfolio ... goes through different stages. First of all, I have to be patient because it takes a while to increase in value.”
“[It’s also important to buy] property with a professional … I bought in [Bligh Park back in] 2009. Then, [in] 2011, I actually engaged a buyer's agent … [In] 2009 ... the gain is only 57 per cent. I bought St Mary's two years later [and] my gain is 86 per cent—that's the importance of the buyer's agent,” he added.
‘Accumulate and cultivate’
Time is one of the reasons why William chose property as a means to create wealth.
Over the past ten years, like any property investor, he has made quite a few mistakes that affected the overall position of his property portfolio.
However, he said, “Time will help you to smoothen out some of the mistakes that you've done … [Property] will appreciate in time.”
“First stage [of property investment] is to accumulate, [and the] second stage is just to cultivate—let time do its magic,” William added.
As complicated as property investment could get, he believes that success is only a matter of mastering these three simple tips:
1. Determine a good mindset - “If your mindset is not correct, then you'll get distracted along the way. Property investment is long-term. It takes 20 years, at least, if not 30, depending on the property cycle.”
2. Seek good education - “If you don't learn about it, if you just rely on others, well, good luck.”
3. Don't be stressed - “The good thing about property investment is you don't [have to] get up to date every day … A lot of times, you want to be in control, but you're not in control ... Time [always works best] with patience.”
Tune in to William Leung’s episode on The Smart Property Investment Show to know more about the Hong Kong and Chinese mindsets on investing and debt, the importance of goal setting and cycles, and why property investors should learn to love numbers.