Hi all,
Just wanted to share an article I read today headed “Your time starts now!” and thought it might be fun to hear your views:
Here is an excerpt:
So what’s the great secret that the serious investors seem to know? It’s simple, really.
They figured out that the people who experienced staggering increases in wealth during the most recent property boom are the ones who went into the boom with a good portfolio of property…not those who only got interested in porperty when the boom dominated the media headlines!
Therefore, when the current boom cools (as it already has in most areas), the likely divergence in strategies will be:
* transient investors will respond to negative media headlines and focus on other asset classes until property becomes trendy again, whereas
* serious investors will continue accumulating carefully selected properties as fast as they can (without becoming overcommitted, of course).
The investors who have been quietly building their portfolio over the next few years when property is out of fashion – we’ll call this the accumulation phase – will enter the next boom phase with a large portfolio of properties.
They’ll watch with delight as high capital growth rates kick in across their already large portfolio, creating a new round of financially independent Australian property millionaires. Their friends, who followed the herd and only chose to invest in property when it was the `in thing’ during heated booms, will enter the next boom owning very few properties. And they’ll wonder how they missed the boat.
Lane Boy, Publisher, API Magazine (June, 2004:13)Hmmmmmm…..interesting!!!
So which type of PI are/will you be; transient or serious??? Me, I’m not much of a “follower” so I’d have to say I’m more of the latter type!!! [upsidedown][tongue][winking]
Cheers,
Jo
Interesting
<<<<<* serious investors will continue accumulating carefully selected properties as fast as they can (without becoming overcommitted, of course).>>>>>
I hope I am this. I sold a property last week as I felt i was starting to be overcommitted. I did buy it two years ago with no deposit but I did make a tidy profit.
Now I can sit tight a bit with my existing properties and purchase again when I feel that I am not overcommitted.
Hi Monopoly,
im on the serious hit list…
but an important factor… which i believe… which seperates a professional from an amateur is…
An amatuer is all about profit…
While a professional is also in for the profit (they know, how to make money in either a boom or bust market) but also, they know how to protect their capital, but very importantly… control and mitigate risk…
simply saying that, you can easily identify between the 2 types of investors: amatuers and professionals
Cheers,
sisSeems Lane Boy knows what he’s talking about.
I want to be a serious investor and hope already am. If I buy more in the near future I feel that I will over committed so I stop at this stage and assess my situation and making new plan.
Kind regards
Jet Dollars
[Retire Young, Retire Rich] [strum]Hey JetDollars,
Having the
centssense to know when to stop (or at least take a break) is a crucial part of being a smart and definitely “serious” investor!!! Good on you, for knowing/realising your limits and acting wisely, unlike so many amateur investors who overcommit and then cry “boo hoo poor me” [bawl]when they crash and burn!!!!Cheers,
Jo
[happy3] We are buying and holding property.
Trying to keep focussed on our goals and not be wavered by headlines.
We are serious about buying two good investment properties a year, in areas we have researched well.
Appreciate all we have learned from this forum and that we gain confidence to make decisions that affect our future in a positive way.best wishes to you all,
DianeBit of a digression, but I like the characterisation of investors that Kiyosaki uses (he borrowed and adapted it from someone else originally).
Bit complicated to explain here but many of you would have read about it.
The idea is there are 7 levels starting at zero and should be at least a level 4 if you expect to do well with investing. Level 4 investors have a long term plan, excellent spending habits and intermediate to advanced knowledge of their chosen investment vehicle (or more than one).
Really they are supposed to be people with all the fundamentals in place, with the main bad habits that detract from success under control.
From there you may like to become a full-blown capitalist and start creating global markets
I think the ‘serious’ investor fits with this characterisation of a Level 4 investor. The lower levels are described as gamblers, cynics, excessive borrowers, market followers that kind of thing.
Ben [buz2]
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