The Federal Election is over, the votes are in and once again Australia has a new government. So it’s no surprise to hear that there’s a lot of noise around the idea of ‘what happens next?’ In fact, the #1 question I’m asked at the moment is what does this mean for property investors? How will this impact my investment? Should I invest now or wait?
First and foremost, I recommend you stop listening to all the noise emanating from social media, your friends or other external chatter. The simple fact is that no matter who’s in government, or what’s happening anywhere else in the world, people will always need a place to live and a roof over their head. Australian residential property prices and rental returns have continued to grow and while there will always be some fluctuation and adjustments, as our current rental crisis deepens and land becomes even more scarce, house prices will continue to flourish over the long term.
Australia is also a big drawcard for migration, and while there was a certain amount of pausing of migration during the peak of COVID, we’re once again seeing more people coming to our shores seeking opportunities – and again, a desirable place to live.
We have well over 100 years of documented history about the behaviour and the growth pattern of Australian residential property, so what we fundamentally know is that if you can buy a number of properties, and hold them for at least 10-15 years or longer, you will have a substantial amount of wealth over and above anything else you may have such as super or savings.
It’s human nature that people want to protect themselves from making what they perceive as difficult decisions, especially when it involves money. Our brains seem to be hardwired for procrastination, leading us to believe that things will be easier 6-12 months from now, or sometime in the future. But the future never comes. And the reality is, people who wait for the perfect time will eventually have to face the challenges and pressure of making a decision to act, even if it’s a few months or years down the track.
I observe so many investors or potential investors use a lot of external factors and elements as an excuse for themselves to believe why they shouldn’t be taking action now. “The market is too volatile”, “interest rates are going up/down”, “Christmas is coming” or “I haven’t found the perfect property yet”.
On the surface they all sound plausible but in reality, they are just another excuse people use for not doing anything that is conducive to their future financial well-being.
If it’s to be, it’s up to me. Your health and wellbeing of your financial future is your responsibility and yours alone. Don’t fall into the trap of playing the blame game or creating excuses for why you can’t (or won’t) invest now. Some people can spend years blaming others or giving themselves excuses for their inaction. Years they could have otherwise spent building up a portfolio.
If you’re finding it difficult to make the decision to invest, what if I framed the decision process like this:
Do you want to finish your working life with enough assets and security to enjoy decades of relatively healthy living you have in front of you doing all the things you’ve always wanted to do?
Or do you want to finish your working life with little to show for it, relying on others for your financial needs, worrying every day whether you have enough to live on, let alone enjoy your retirement years.
Suddenly the answer – and the motivation to invest – seems very simple.
Even if you’re not financially set up to invest right now, you can still start your investment journey by firstly deciding on what you want your life to look like, then developing your knowledge, starting a savings plan and surrounding yourself with the right people to help you get started.
- Clearly defined where they were financially and where they wanted to be
- Decided they were willing to work harder and make sacrifices to achieve their goals
- Adopted a strategic, long-term mentality
- Remained disciplined and focused on the big picture
- Blocked out the noise and distractions of negative thinkers
- Developed the mental ability, determination and possibility mindset to overcome challenges along the way
- Worked with the best property people, financial advisors, mortgage brokers and mentors
- Emulated the habits of the very people they wanted to become
- And fundamentally, took action every step of the way.