Find your Why…
One of the most common BBQ topics is property. For some reason it always has a way of being brought up. Have you ever noticed everyone is an expert? Grandpa discusses the cost of housing in 1940, Aunty Lisa complains about affordability in some of the most in-demand locations and Uncle Tim boasts about his ability to pick the latest boom ‘hotspot’ (even though he never invested there). The point is property can be one of the most polarising discussion points. Long haveAustralians love of property been engrained in our psyche. Many believe in the notion of you are nobody until you own property! When it comes to property investing, the discussion always seems to revolve around “where to buy”. What if I told you that the most successful investors worry about this question last? The most important questions that should be asked before investing in property revolves around Why? What are you trying to achieve by investing in property? Many common answers from people are:
Financial freedom
Travel more
Spend more time with family
Quit the job they hate
Start a business
Move to a career they are passionate about
Work part-time
An answer may be one of these, a collection of these or something completely obscure. Recently,I discovered in a book called TheSimplest Path to Wealth by J.L Collins, he coined the term ‘F.U. money’.His goal was to create a wealth base large enough that enabled him to do exactly that. When somebody said he was unable to quit his job, unable to buy that car he loved or unable to take that dream holiday, he replied with – Yep you guessed it “F.U.” By identifying his goal early it laid the perfect foundation for an extremely successful career in investing. He’d found his why.
The point for investors looking to start out is to first ask What is my why? This will enable clear decisions regarding asset selection, strategy and portfolio management - points which will be discussed in future articles. Personal circumstances and end-goals will vary from person to person. Property selection is based around this. It is critical to cut the noise, stop listening to Uncle Tim and
Find your Why…
- The Tattooed Investor