Rich Dad Poor Dad is a 1997 book written by Robert Kiyosaki. It advocates the importance of financial independence and building wealth through real estate investing, starting and owning businesses, as well as increasing one’s financial intelligence to improve one’s business and financial aptitude. The book is largely based on Kiyosaki’s childhood upbringing and education in Hawaii.
Kiyosaki had a simple philosophy based on straight forward key principles – differentiate between assets and liabilities, the value of financial education, and the importance of entrepreneurial and investment skills in taking control of one’s financial future. The educational author attracted a large crowd throughout the world who gathered to hear his simple message that investing in real estate can make you rich. He wrote a book detailing how he was homeless living in the back seat of his car to becoming financially free, and thousands of people followed his lead and built ultimate wealth through smart real estate investment.
The simple guidelines which Kiyosaki states he put into practice all those years ago have remained true to this day. Purchasing and holding assets today can make you rich in the future. Your family home may be a liability as it does not produce any income – however investment properties in affordable price brackets can help secure financial freedom in the future.
All over the world there are people enjoying financial freedom now because they made a few smart decisions years ago. In their 20’s they bought a one or two bedroom unit and after a few years its value had increased enough that they could use their equity in the property for the deposit on a three-bedroom house in a blue chip suburb as their second investment. A few years later they were able to continue to purchase multiple investment properties using equity from their expanding portfolio. The effects of inflation and the power of compound interest generated growth to keep investing.
This method of investing takes time and does not happen overnight. It is more like a marathon run rather than a 100 metre sprint. However, it works and it has withstood the test of time throughout many peaks and trough cycles in the Australian property market.
Which brings us to todays property market. There is no better time to get into the market and expand your property portfolio than now. Inexperienced investors try and time the market. Experienced long term investors understand that time in the market is key to achieving ultimate wealth. Historical data has shown that owning property can far exceed an individual’s salary as an employee. In exclusive blue-chip areas, it is not uncommon for properties to rise by more than one million dollars per year.
According to RP Data, houses in the Newcastle suburb of Merewether increased in value by more than $450k in 12 months. In Newcastle, the average home has risen by 14.28%. On The Central Coast, home values grew by 13.6% compared with a 12.2% rise in Sydney. These statistics tell us that you can certainly become rich if you invest in the right areas trending for growth. For those who are looking at getting rich from property investment – consider booking an appointment with a Luxland Property Consultant today.