You cannot pretend there is no risk. You need to adjust your strategies based on your tolerance of risk. However, you cannot sit on your hands and expect your financial freedom to just magically happen.
Wealth creation is usually a slow and methodical process. Watch my recent video ‘Wealth can’t Wait’ the book review, to see what I mean.
If you are extremely risk-averse then the temptation is to do nothing. Just save your money in the bank and earn the minimum and hope your savings do not get wiped out by inflation.
If you have even a little bit of hope for more income in retirement and to break free of having to work for money, then property investment is probably more tolerable than shares, and easier than getting into business for yourself. If you understand the share market or have strong business acumen, you may not need property investment at all. But for many people, property investment is the default vehicle for wealth building.
At least you can touch the property and sell it if needed. You can more easily influence the outcome and success of your investments. The value of the properties you buy (averages) should hold based on historical numbers.
It’s actually a lot less risky to buy property if you have great knowledge of what you are doing and have a spreadsheet accurately prepared to assess upside potential. Factoring no capital gains and lower yields than you expect will help you understand and plan for the unexpected.
Risk is when:
Risk mitigation is understanding the risk, planning for points of failure, and proceeding with caution when required. This is akin to wearing a seatbelt, not driving unless conditions are safe, and staying alert to the dangers as you travel. Property investing is safe when you are investing based on knowledge, not speculation.
You cannot expect to stay home and do nothing your whole life. Your money needs to be managed in a way that it grows to help you and your family in the future. If you don’t have expensive tastes or desires – then grow your money pile and give it to the community, church, charity, organisations in need. Many people sleep better at night knowing their Will leaves money to charities.
Proceed with caution.
Everyone’s an expert – friends, family, neighbours, colleagues, the taxi driver, the entitled journalist – but do they own tonnes of property and have they studied 1000s of case studies? Probably not. You have to make decisions based on your own knowledge base and it pays to enlist the help of those already helping others achieve what you want to achieve.
If you have not already, watch JP talk about his property investing where he recently banked almost $100k profit in 3 weeks. One of the best ways to avoid risk (or at least reduce your exposure) is buying undervalue.
Working with the right accountant, lawyer, adviser and agents, will pave the way for successful investing.
Lawyers and accountants easily cover their own costs through saved time and headaches, and most of the time agents and advisers work at no cost to you. To gain the attention of the best professionals you need to be willing to be a good client that is educated, prepared and presents them with good viable projects.
Check out the PFW course if you think you’re ready to become a more educated property investor and looking to take the next bigger steps to financial freedom.
The masterclasses and then the Property Formula Workshop are all designed to continue replacing doubt with action-orientated knowledge.
All of the masterclasses and the property formula workshop equip you with knowledge and also tools like spreadsheets to ensure you can apply everything to your life.
From the entire team at mortgagehq, THANK YOU for joining us in the course! We hope it was encouraging, educational and empowering.
We would love to hear from you with any of your feedback, suggestions, thanks, or a story of how this helped you. Please reply to this email and let us know – we would really appreciate it.