In a world of uncertainty, there is a way forward

It is hard to reflect on the month of March, without reflecting on the continuing uncertainty we are facing both globally and here in Australia.

From the war in Ukraine, to the devastating floods in NSW and QLD, as well as increasing cases of the new Omicron sub-variant, the uncertainties we have been facing seem relentless and for many, it feels hard to find the light at the end of the tunnel for when things truly ‘return to normal’.

Of course, the truth is that ‘normal’ may not be quite the same as we remember – it may well be a new normal that we will have to become used to. But that said, facing challenges is nothing new; and for those of us who have been less impacted by these terrible world events, it is actually a very good time to reflect on our own lives and how we wish to move forward.

It’s tempting to wish for things to be easier

I have always been very inspired by Jim Rohn’s quote: “Don’t wish for things to be easier, wish for yourself to be better.”

Focus on the things you can change within yourself versus uncontrollable external events; this way you will be able to be mentally clearer and stronger, with greater resilience to handle challenges or adversity. There’s no such thing as smooth sailing; it’s all about your heart and knowing your higher purpose.

If you have a clear idea of what’s important to you – a higher purpose – then challenges, obstacles, uncertainties will still impact you and alter your course, but you will continue to find your way back on track.

Investment – like life – ebbs and flows

Challenges will come and go, just as over the short term any market can be impacted by what’s happening in the world. Over the long term, through previous wars, floods, inflation, economic crisis, we’ve seen the markets continue to bounce back from short term fluctuations. The long-term fundamentals are key.

I read an article recently that within 10 years Australia will be short approximately 160,000 dwellings. Inflation and interest rates, together with higher building costs are all making it harder for new houses to be built – resulting in a shortage by 2024. When things get better, and developers return to the market in full swing, there will be a lag; the turnaround time is still 3-5 years, and we will face a potential rental crisis. In my own portfolio even now, nationally I’m seeing my property managers recommending increasing my rents substantially. In the past, a rental crisis has been typically followed by a property boom. When interest rates rise, typically this additional cost is passed on to tenants – another great reason as a tenant to try to get into the market. In crisis there is also opportunity.

Uncertainty is a great excuse to start something rather than give up

It’s important to remember that every single day is a new beginning. I often find people use adverse situations as an excuse not to do something. Whereas to me, I see uncertainty as a great reason to start doing something.

We have seen from recent months and years – it’s important to plan for a rainy day – they will come! But imagine if next time, you were in a better position financially because you had put aside savings. Or imagine if losing your job or closing your business wouldn’t be a devastating impact because you had assets to fall back on.

We are surrounded by many inspiring people who have overcome adversity and rebuilt their lives. Holocaust survivor Frank Lowy comes to mind; leaving behind him the Westfield empire and legacy.

It may take some longer than others to save, invest or build their business empire; but remember that whether it takes you 10 years or 15 years to climb the mountain, the view from the top will be the same.

Live each day as if it’s the last and plan your life as if you are going to live forever

The Art of Property Investment 2022

Joseph Chou is the CEO & Founder of Ironfish. He presents regularly on mindset, success and wealth building. Watch his latest webinar: The Art of Property Investment 2022