Why do people want to make money from property investment and yet at the same time they are afraid of losing money? Let me begin with an analogy of how to make money by becoming an electrician. Most of us know about usefulness of electricity but at the same time we also know that electricity can kill us. The fear of being burnt or killed by something invisible like electricity prevents people from becoming electricians. In order to overcome the fear of electricity, one needs to have a test pen and basic knowledge of how to handle electricity, for example, how to do wiring. The test pen is a tool for showing us whether a wire is “live” or otherwise.
Similarly, to make money from properties, you need a property investment plan and some basic knowledge about properties. An investment plan comprises goals, strategies and specific action to be taken. Basic knowledge of properties such as under-standing the different types of properties, where and when to buy, as well as why and how to buy are what we need to know as property investors. This book includes your personal strategic plan and all the details needed in order to succeed in property investment.
There are many people who became very wealthy by investing in properties. These people know what they want and they work very hard to get it despite their limitations after they have made their initial decision to succeed. They are people who take action. Sometimes they are people who try to cross a river when there is no bridge, or to climb a mountain when there are no stairs. They are focussed, persistent and they don’t give up easily. They are led only by their own faith and eventually achieve their dreams in life. They learn, they ask and they find ways to overcome obstacles and reach their goals.
If you want to make millions, find someone who has done it and is willing to teach you. Learn from them even though they may live as far as the United States, Japan or Alaska. That is the spirit and energy that successful people have.
If you know how to combine your educated and analytical mind with the positive attitude of believing that nothing is impossible, you will achieve whatever you want in life. In property invest-ment, we need to search for the right property at the right location to invest. We need to analyze but not over-analyze. Have the courage to make difficult purchase decisions and overcome all the fear that comes along with it.
Property investment is a plan formulated with goals and strategies in mind. For the past few years since the Subprime Crisis in the US in 2008, property prices have appreciated dramatically. Therefore, I feel that property investment strategies for going forward should be adjusted and changed to cash flow strategies instead, rather than to keep focussing on capital gains alone. Invest for cash flow using cash flow strategy outlined in this book during property boom cycle and invest for capital gains during a property bust cycle.
There are many ways to move up to a higher level, physically. For example, you can use the stairs, a ladder, an elevator or a lift in order to move yourself upwards. Financially, property investment is one of the elevators that can help you to move up to a higher level. Can you move up to a higher level by jumping on the same spot? Not likely. A better way would be to jump onto an elevator, or an escalator. Changing financial vehicles can change our financial well being. I say that from experience because I have tried many other businesses and have not only lost money but also my precious time. Therefore, I believe property investment is one of the best investment vehicles that exists.
Properties can be used at different stages of your life to create wealth and to fulfil your dream lifestyle. It is also a commonly misunderstood investment. Buying a house, for example, is not investing as it does not give you any rental income, only potential capital gains. However, property is a unique investment because you can live in it or use it for doing business. Property can also be integrated into various stages of your life’s financial needs such as for your children educational needs, retirement needs and securing financial freedom.
You can become rich and wealthy investing in properties. You can get started immediately after reading this book by taking the necessary actions such as property goal setting and planning how to achieve it, viewing different types of properties, attending property seminars and actually putting in money and investing.