Hi Guys,
I am starting the RESULTS mentoring course in June and I just keep having worrying thoughts of doing this in the current economic climate and housing market. I guess this could also apply to anyone going into property investing at this time. Some counter thoughts may help!
Like at the moment a bombardment of newspaper reports (well I know the telegraph isn't what you would actually call quality journalism) of house prices to drop a further 30% over the next few years, and even in quality areas. Of economic gurus predicting a recession. Constant stories on A current Affair and Today Tonight of sheriffs evicting those who cannot pay their payments. Constant interest rate rises. Not to mention that economists rate property so overpriced in Australia thatt the average property is priced 8 times the average wage compared to around 3 times in the United states etc. To me this says Australian prices are over inflated and unsustainable. So how do we make money in this market and feel relatively secure?
To counter this I see that their is huge rental demand thus there has to be opportunity there? Maybe also this saving scheme instigated by the government will dampen demand untill people have saved and thus create bargains in the market? Its good to buy a bargain but how low will the real estate market go?
I read all of Steves books about a year ago now. I think I remember him saying re the property clock to cash up in a downturn, lay low, to sell if necessary to repay debt and to keep the LVR on your existing properties low. Problem is im only starting now so how do I cash up and do nothing if im just starting out?? One advantage I do have is my mum does have a few properties herself and she said she will be a partner with me in this so maybe I can leverage that situation somehow. I think she is the classic asset rich but cash poor though!
I have recently been reading "7 steps to accelerated wealth" by John L Fitgerald which is really good also and seems to have the same themes for finding bargains, adding value etc to property so I know its the area I need to get into but is it the right time?? Have also seen lots of ads for propertysecrets in all the property investing magazines where they do most of the work for you in property investing, sourcing, renovating etc, but I dont know it looks a bit too polished.
Oh well I am looking forward to it all I just need clarification of what im doing.
Well, congratulations on taking the first step. I am just finishing my RESULTS mentoring program but have signed up for the graduation program which will continue my education and keep me in the loop. Steve often says "any idiot can make money in property in an upward trend" so I believe that now is a great time to be in the mentoring program. You will find out how to make money in a downward trend and it is a buyers market!
One of the best things I found about being a part of the RESULTS program is the ability to mix with like minded people who are all headed in a similar direction. That is worth oodles alone.
You will get loads of technical information as well as mind stuff to get your head around so you are in for a year of great learning! I wish you all the best for your RESULTS year!
Leanne
first up oops I think I should have stuck this post in the 'heads up' section, not sure, sort of new to the forums!
Thanks Leanne for the heads up, sounds like you enjoyed your time in the RESULTS program. Will be interesting to see how to make money in a downtrend, not quite sure how though, yet! The fact that an elder brother keeps rubbising the property market in my ear doesnt help, but I guess being around more positive people will help!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
