I’m sure the title of this blog is completely confusing for everyone as the media headlines of late have been sounding like – “Sydney property prices about to crash”; “Oversupply of apartments will prompt next GFC”; “The property boom is now over” or “Australia ranked least affordable country in the world”. The media is only interested in writing headlines about two things: BOOM and BUST. Anything in between is too boring and does not sell papers so ultimately they will normally only publish what they think sells. The media will always try the usual scare tactics to get you to read their rubbish.
Don’t get me wrong, the market does dictate pricing and you can’t help that. Factors that are driving prices up are a combination of variables such as foreign investment, infrastructure development, interest rates, supply and demand, jobs growth and many more driving forces. These forces are generally out of our control as a single person living amongst 25 million people. Further more, the Australian population is projected to increase at a rate of around half a million people per year. This means that these people need jobs, housing and more infrastructure to support the migration of new Aussies.
However, not all booms need to be from the result of things you cannot control. If you shift your focus towards things you can control, such as your own education and mindset then maybe you can create your own boom. Just like in any business, you go through cycles of highs and your fair share of lows, however if you are constantly learning and educating yourself, you will find that you will be able to persevere. The more lows you seem to go through, the more resilient you become to change and market fluctuations. The experienced know that peaks and troughs run in cycles and they accept the unexpected changes in their stride and keep soldering on.
Just like a professional boxer who is tired in a fight, he is trained to duck, weave and to stay composed in times of stress and adversity. Losing your cool and letting your emotions get the better of you can cost you the fight. Business and property are very similar, where if you stay on course and keep focused, no matter what the circumstances, in the long-term you will achieve success. Training the mind is just as important as training your muscles, the more stress you put yourself under and learn to control it, the stronger you will become. Education is KING and you must never stop evolving and seeking out new information on how to become successful.
I’m creating my own boom by educating myself on all things that have to do with my businesses and property portfolio. I am selling off assets that no longer produce the required amount of income needed to achieve my 2018 goals. No emotional attachment to anything, just logical decisions to keep moving forward. I see 2018 as the year of opportunity as I can see the bigger picture while most others are scared sitting on the side lines being a spectator instead of being the star player.
I am focusing on surrounding myself with other millionaires within my space to help this boom EXPLODE. Yes, bad things will happen in the market place that will affect many hard working individuals. No doubt. However the experienced know that when this occurs, this is when the most opportunities arise. As Warren Buffet famously quotes, “Be fearful when others are greedy and be greedy when others are fearful.” Don’t think of the prices now, or next month, or the end of year. Think of the prices in 10, 20 or even 30 years time. What are the long-term opportunity costs of you not getting involved in property today?