One of the most common themes of questions I get asked, every week, via social media, emails, even during phone calls, is all about growth…
Which areas have the best growth?
What if the market does not grow?
Is the U.S. or AU market better growth?
Its like we are programmed to only look for growth when buying properties…
Now, don’t get me wrong, growth in property is certainly nice. In this country we have the old saying that every 7-10 years the price of property doubles… Whether that will still hold going forward, with the price of properties in Australia and New Zealand so high, I do not know.
Even Auckland right now is seeing property prices rise $100,000 in just 1 month! Crazy.
It seems at the moment we have massive property growth in a number of markets all simultaneously. That’s what cheap money does.
But, with so much focus on growth (which, by the way, is only ONE of hundreds of ways of making profits in property) why is it that there are still so many people TALKING about investing, but not actually investing?
Waiting for years to see if they can predict ‘growth’ in any particular markets, and when it is jumping up and biting them on the nose, they are still waiting for… something?
Every media outlet, publication, social media group/platform is posting charts about how much growth we are seeing in Australia, New Zealand, United States, and predicting how high it will go, how long it will last, and yet many are still not convinced now is the time to invest.
Now, I get that the AU and NZ markets can be prohibitive due to costs (although there are strategies you can use with little or no money down, but these can be tough to implement) but markets such as the U.S. are quite affordable.
I think it was Robert Kiyosaki who said it best, when asked when the best time is to buy real estate. His response was “The best time to buy real estate was 20 years ago, the second-best time is now”. Or maybe that was Warren Buffet?
Anyway, the point is investing in property is a process, not an event. You are not waiting for a bunch of stars to align, or signals to be all green before “taking the plunge”.
It is a process to firstly get yourself into the right mindset for investing; the right financial position to invest; acquire the knowledge you need or talk to the right people to help you if required.
If done correctly, you will generate wealth through real estate in any market… not just growth markets.
Is the U.S. market growing right now? Absolutely! This would currently be the hottest market within the U.S. that I have experienced in my time.
Are we making more now, in this super-heated market? No…
Yes, properties are selling for more, and one of the biggest benefits of such a hot market is that we can get into and out of the deals faster but our returns using manufactured growth strategies are still around the same – 20-30% nett ROI on a deal.
The issue during hot markets is that while we can sell the properties for more, we also have to pay more to acquire them…
Is now a great time to get into property, absolutely!
But so will tomorrow, and yesterday, and last year…
Nike’s point is true – Just Do It.
There is not much certainty in this world of ours, certainly nothing certain about markets, investing in anything. But one thing is certain…
If you do NOT invest, you will make nothing.
You got this!
Happy Investing all and have a great weekend!!