Long Term Property Investment: Slow and Steady Wins the Race
Have you noticed that Doctors continually stress that quick-fix diets won’t sustain weight loss? Their maxim is that a healthy diet and exercise is the only way to maintain weight. Still, each year, the fitness market rolls in billions on fad diets because we live in a society that wants to see results now! Funnily enough, the same goes for building and sustaining wealth. Investing is a process, built over time using key principals. Thinking ‘long term property investment’ is paramount to being a successful investor and becoming wealthy.
Rather than seeing yourself living in your dream house and driving your dream car in your 20’s or 30’s, a simple change of mind-set and a plan, could be all you need to see yourself retired early and living the life you’ve dreamed of.
Overnight riches seldom results in increased wealth because often the individual doesn’t have a plan for the money and before they know it, they’ve spent it.
Property investing can be one of the safest and most rewarding ways to invest your income and see a great return. Many of the government rules such as age, income, and health history that we see in superannuation investments don’t apply.
Long Term Property Investment is a process of habit and patience
Simply put, long term property investment is a process of habit and patience which results in a return after many years labour. It’s the old story of the tortoise and the hare. The tortoise wins the race!
It’s important to remember that when it comes to property investment, time is on your side. Having to wait for a financial return isn’t a burden, it’s a great opportunity. With patience, and a well thought out plan, you could afford to start investing in property for as little as a couple of hundred dollars a week.
Formulating a strategy regardless of what the market looks like is the first step.
As time passes, and the market turns this strategy shouldn’t change. The only changing factor should be that as property values increase, you refinance so that your debt payments increase with your assets.
This formula, will work for both long-term and short-term property investments. However, long-term investments are rarely affected by down-turns in the economy, high interest rates, or rises in unemployment and living expenses.
Another pro to long term property investing is that – while timing, finding the best interest rate, and negotiating price is vital in short-term investing – time levels out these stresses and consequently makes them less important in the long run.
The beauty of long-term investment and property investment is that it gives average income earners, new starters, even students, opportunity to put the little finance they have in their hand towards building their own wealth.
Risk is always a reality but with a small start you moderate this risk and it becomes more manageable over time.
It could be, that a simple change of our mindset and values is all that we need to be on the way to becoming wealthy in our lifetime.
Article by James Parnwell & Jordie Cox
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