I certainly can’t knock the winter we have been having in Melbourne! Hardly a cloudy day! Not sure if it is Mother Nature also mocking us because we can’t be out enjoying it as much, or She is doing her best to keep our spirits up with the sunshine?
Either way it’s certainly nice to see the lovely cool, but sunny days.
The longer days give way to some optimism too, even though it seems that cases are still rising in Victoria, and NSW is on the verge of an outbreak, and it would be so easy to give in to negativity, it is important to keep a positive outlook.
I was chatting to a couple of my coaching students this week, and we were discussing the U.S. market, how it is playing out and with their summer period coming to a close, and it got me to thinking about my blogs this past month.
If you haven’t read it either yet, here is a link:
Now, the quick moral to the story (without giving away the punch lines, still go and have a read!) is that the old method of buying when markets are low, and selling when high, just does not work now.
But, I do see why most of us still worry about what the markets are like, is it a good time to buy, etc, because all other asset classes – Stock market, Commodities, bonds, Currency; you name it – all require you to buy low, and sell high to make a profit.
The difference with real estate, is that this is just ONE way, there are DOZENs of others including:
Purchase and tenant to make a passive income
Purchase and renovate, selling for profit
Purchase, renovate and sell on terms to make passive returns
Purchase, subdivide and build
Buy unit blocks and strata title, selling the individual apartments
And the list goes on…
Now, certainly not all of these work in every market, some are good here in Australia or New Zealand, but others are great in the U.S, my point is this, with all these options, your profits are much more reliable, much more within your control.
You just need to ensure you buy the right property, and this is down to your due diligence, something you can control, not market forces…
Sometimes, it is easy for us to get caught down in the detail, and not look at the bigger picture.
Are you finding yourself analysing market trends rather than property project feasibility numbers?
Are you looking for seasonal flows, changes in markets due to weather or periodic changes?
You may find you are stuck in this stock market or commodities approach to property.
And I would argue that this is speculation, not investing…
Even the great Warren Buffet, probably one the best investors of our time, will tell you that no one can pick the market, that’s speculating…
Investing is looking at the feasibility and ensuring the numbers WORK for the strategy you wish to implement, not waiting for the market to rise or fall…
Are you finding yourself speculating, when really you need to be investing?
So then, is maybe now the best time to invest, not speculate?
You got this!
Happy Investing all and have a great weekend!!
Here are some interesting links for you! Enjoy your stay :)