katetkeith

[katetkeith]

10 lessons I learned from past property downturns

What comes up must come down.

History shows us that property markets move through a cycle of downturn, stabilisation, upturn and boom.

Then rinse and repeat.

Australia’s property markets have now moved into the downturn phase.

But let’s be clear…we’re experiencing a soft landing.

There is no crash ahead.

So what’s ahead for property in 2019 and beyond?

Given there are a number of markets across the country, all at differing points of their own cycles, I’d like to look back and share 10 lessons I learned from previous property downturns.

1. Booms don’t last forever

Whether it’s property, shares or bitcoins — booms just don’t last forever.

The thing is, booms are just one part of a cycle, so they will always end at some point.

Every boom sets us up for the next downturn, just as every flat period provides opportunities to get set for the next upturn.

The trick is to be prepared for the downturn when it comes and be ready to make the most of softer market conditions.

2. Stick to your strategy

Don’t change your long term strategy because of short term factors.

Look for what’s always worked, rather than what’s working now.

Long term wealth will be created by capital growth of your property portfolio.

Sure, cash flow is important – it will keep you in the game.

But it’s capital growth that will get you out of the rat race.

Let’s be honest, almost anyone could have made money during the recent boom years as the market covered up any mistakes.

But as Warren Buffet says: “You only find out who is swimming naked when the tide goes out.”

In other words, if you’re not following a strategy that works in all market conditions you will be caught naked when the market changes.

3. Get rich quick = get poor quick

Successful property investment takes time.

Be wary because there’s a new breed of spruiker out there looking to lure the uneducated into parting with their money by offering them a short cut to riches.

4. Take a long-term perspective

During a market downturn, fear starts to rear its head.

People who have made poor investment decisions, or those who bought near the market peak, start to panic.

Let’s face it: emotions of any kind are not a good idea when investing.

The secret is to keep your eye on the long term horizon and not worry about any short-term vagaries of the market, because they will pass.

5. Property investment is a game of finance with some houses thrown in the middle

Strategic investors don’t only buy real estate — they buy themselves time by having the correct finance structures in place including cash flow buffers to ride through the cycle.

6. Invest in locations with a future, not a past

Since the bulk of your property’s performance will be determined by its location, rather than looking for somewhere cheap to buy, find a location where local economic growth will lead to jobs growth, wages growth and population growth.

A suburb where the local demographic can afford to and will be willing to pay for their properties because they earn high disposable incomes.

You’ll find that the rollercoaster ride will not be as dramatic in these well researched locations.

Last time round many of the boom time hotspots which did not have underlying economic strength left investors gasping for air during the downturn.

Yet those who bought in locations based on economic fundamentals and research may not have had as dramatic of an upswing during the boom, but their downside was minimised during the downturn.

7. You know less than you think you know

A healthy ego can be a good signal of future success.

However, an over-inflated one will usually mean you end up worse off than when you started.

If you’re the smartest person in your team you’re in trouble, so recognise that mentors and experts can help teach you the things that you don’t even know that you don’t know.

8. Don’t mistake money for wealth

A big bank balance means someone’s rich, right?

Well, no, it doesn’t.

Many high income earners live from one pay to another — and never have enough money “left over” to invest in income-producing assets.

The truly wealthy not only have a capital growth portfolio behind them, they have learned that money is not wealth.

That’s why they make time for their family and their health, and they give back to society and to their local communities, because that is where true happiness lies.

9. The sky isn’t falling

When the good times seemingly turn bad the property pessimists and doomsayers come to the fore.

These “commentators” predict the end of the financial world suggesting we should all sell up and hide under a rock.

On the other hand, sophisticated investors ignore the white noise because they are concentrating on the long-term, where the view is calm and clear.

10. Opportunity is knocking

When opportunity arises, strike.

Remember Warren Buffet’s words: “Be fearful when others are greedy and greedy when others are fearful.”

Sure it’s difficult to take action when others around you are talking doom and gloom, but it is during downturns that life time wealth is made.

The Bottom Line:

Strategic investors don’t really care too much about market phases.

Instead they concentrate on growing their portfolios and investing in the right type of properties, whenever it suits their finance, their strategy and their long-term goals.

That way, when everyone else has hunkered down for the “property winter”, they’re basking in the sunlight of their future wealth creation.

When there is less demand for something, there is less competition, which should mean lower prices.

While investment grade properties will always attract demand, sometimes when the majority of the market is fearful, you can buy below intrinsic value.

Then, because your property is located in an area that has above average long-term capital growth prospects, and you can add value through renovation, that property will soon be worth much more than you paid… regardless of the market conditions.

If you’re looking for independent advice, to set yourself up for financial freedom through property, no one can help you quite like the independent property investment strategists at Metropole.

Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.

Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.

Please click here to organise a time for a chat. Or call us on 1300 20 30 30.

[katetkeith]

What really leads to success? [video]

What leads some people to be so more successful than others?

Ten years of research and 500 face-to-face-interviews led Richard St. John to a collection of 8 common traits in successful leaders around the world.

In this short, humorous but insightful TED Talk he explains his findings:

[katetkeith]

Quotes by Steve Jobs that will change the way you work

When you think about what Steve Jobs accomplished, is beyond remarkable.

He changed the way we live.

To help you reach your career goals, we have put together some of his best quotes.

Read them, be inspired by them, and then get out there and make your dreams come true:

1. Have the courage to follow your heart and intuition. They somehow know what you truly want to become. Steve Jobs

2. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. Steve Jobs

3. I think if you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what’s next.  Steve Jobs

5. That’s been one of my mantras—focus and simplicity. Simple can be harder than complex; you have to work hard to get your thinking clean to make it simple. Steve Jobs

6. Quality is more important than quantity. One home run is much better than two doubles. Steve Jobs

7. Being the richest man in the cemetery doesn’t matter to me. Going to bed at night saying we’ve done something wonderful…that’s what matters to me. Steve Jobs

9. Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma—which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. Steve Jobs

10.We’re just enthusiastic about what we do. Steve Jobs

11. You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something—your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.  Steve Jobs

13. For the past 33 years, I have looked in the mirror every morning and asked myself: ‘If today were the last day of my life, would I want to do what I am about to do today?’ And whenever the answer has been ‘No’ for too many days in a row, I know I need to change something.

14. I’m convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance.

15. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

18. I’m as proud of many of the things we haven’t done as the things we have done. Innovation is saying no to a thousand things.

BONUS QUOTE:

[katetkeith]

How much does a view add to the value of your property?

How much does a view add to the value of your property?

To find out we undertook a study in 2018 to help provide us with some guidelines and found that certain types of view added a different value to a property.

Our work identified the different views available and then we looked at how much they can increase a dwelling’s value.

Our investigation was also based on an identical new dwelling built in the same area (but with differing views) with a base price of $500,000.

The five major view types: 

1. Ground level, unobstructed view (3% to 5%).

This type of view means that you are located at the same level as many of the other properties around you, but you have the advantage of having a view that allows you to see a large, non-residential space, like open space.

Such a view increases a properties sale price by between 3% and 5% and the new sale price could be as high as $525,000.

2. Rooftop, partially obstructed view (6% to 8%).

A view from above would suggest that you can almost see over all of the other properties around you but there may be a few buildings that partially obstruct your view.

Generally, the higher you are, the more value a view can bring to your home, so a rooftop’s partially obstructed view can bring in an additional 6% to 8%, lifting the potential sales price to $540,000.

3. Unobstructed view from a medium elevation (9% to 12%).

This category is primarily reserved for homes that reside on the top of a small hill.

This particular view can see areas all around a home without any obstructions but aren’t high enough to see far beyond the house’s small community.

Having an open area will always command more money than if you can only see a few houses down, so this type of view has the potential to add between 9% and 12% to the value of your home, so the new sale price might be $560,000.

4. Unobstructed view from high elevation (15% to 25%).

Doing much better than the previous view, being able to see a wide vista from the comfort of your own home can add significant value to it.

Our estimates here have a wide range because much depends on what you see.

Still, the value of the real estate can increase substantially, with the new sale price as high as $625,000.

5. Unobstructed water view (30% to 80%).

The biggest attraction of a view continues to be a large body of water, with the higher premiums being given to salt water.

Also, at the upper end of the premium range the water view needs to be unobstructed and the more rooms it can be seen from, the better.

Depending on the body of water, the residence can increase in value up to 80%.

This would mean that our $500,000 base house has a potential price tag of $900,000.

In summary…

Pricing a view is certainly not an exact science but as more and more properties are constructed in an area, the chances of finding a great view are becoming increasingly difficult.

Hence, properties with a view command a range of premiums now and these bonuses are likely to rise further in the future.

[katetkeith]

The caterpillar and the butterfly

One of my children’s favourite stories was the Very Hungry Caterpillar.

No matter how many times they heard the ending; there were always gasps of amazement when the caterpillar changed into a beautiful butterfly.

What seemed like a miracle to them is actually a normal part of the life cycle of many insects, but it took me a long time to realise that this is also how the property market often behaves.

Many cities such as Sydney and Melbourne are like a very hungry caterpillars, right now.

They devour their way through our funds, leaving us negatively geared with prices stagnant or falling.

We call these buyer markets, where vendors are competing against each other and purchasers are scarce.

But like the butterfly triumphantly emerging from its cocoon, these markets will suddenly turn into things of beauty with booming prices and soaring rental yields.

They may appear to be changeless like a caterpillar’s cocoon, but hidden from view, the housing market stats are telling us that Sydney, Melbourne and Brisbane, in particular are generating steadily rising numbers of potential buyers and reducing stocks of new properties.

With these trends, demand will soar ahead of supply and housing prices will take off, just like a butterfly triumphantly taking flight.

[katetkeith]

The success “secrets” of some of the wealthiest people I know

I don’t use the word “secrets” very often.

But over the years I’ve found that the wealthiest people around think, feel and do things that most people don’t know about.

I guess this means if you want have the life very few people have, then you’re going to need to think and do what only very few people do.

And so they are “secrets.”

Today I’d like to share 6 of them based on my 20 years working with many successful investors and particularly working with the successful business people, entrepreneurs and investors who join me at Wealth Retreat on the Gold Coast each year in June:

Secret #1: They don’t really care what others think.

Now this is a core insight.

How many times have you had a breakthrough idea that would 10x your own life in the process, but given up on it the moment someone in your inner circle shot it down.

You can’t get ahead and make breakthroughs in your life, in your business or with your investments by doing what everyone else does.

I came across an interesting concept….this world was constructed by eccentrics and misfits.

I know that’s a bit confronting. but in his great book Zero To One, author Peter Thiel notes many of the Silicon Valley greats have Asperger’s Syndrome, which is on the autism spectrum.

He explains that these people are wired with no need to fit in. And this became their advantage.

Which meant they dreamed up grand visions and got them done, denying the chattering voices of the naysayers around them.

No I’m not suggesting you need to be on the “spectrum” to be successful. Far from it!

What I am saying is trust your gut. Block out those who don’t “get you.” Go ahead and chase your dreams.

And when you do…you’ll be considered a genius at the end.

And if you’re one of the 50 who will join me at Wealth Retreat on the Gold Coast this June you’ll go home with a 5 year plan for audacious goals in all aspects of your life plus a tool box full of tools so you’ll be able to fulfil your dreams.

Secret #2: Emotions power wealth.

Look, a big heart always beats cold logic.

I’m not saying you don’t have to have the bravery of a warrior to win at your goals.

All I’m saying is that the most successful people who join us at Wealth Retreat every year are driven by a cause much bigger than themselves.

And it came from their emotional dimension versus their intellectual realm.

They realise that true wealth is not measured by how much money you have or how many properties you own.

They know money is important in those areas of your life where it is important (like paying the bills) and it’s not at all important in those areas where it is not important.

At Wealth Retreat you will set 5 year goals and plans for all areas of you life so you can create Lifetime Wealth.

You can find out more about Wealth Retreat by clicking here

Secret #3: Your social circle determines your net worth.

You’ll never rise to financial freedom until you populate your life with bigger thinkers and better performers than you.

My life completely transformed when I had  is one conversation with a mentor in 1998 – just over 20 years ago.

It was a game-changer that altered the rest of the way my life unfolded.

And when you join us at Wealth Retreat on the Gold Coast in June you’ll gain a whole new network of positive people who will understand you and help you leap forward.

One of the things that struck me on the first night at Wealth Retreat last year, when we all got together for a special surprise event (the details of which I can’t reveal here, otherwise it would spoil the surprise for the attendees) was how quickly people connected with each other.

Have you ever had that experience?

Where you meet a group of people and feel like you’ve known each other for years?

May I ask you a direct question? 

It’s going to be a bit blunt, but I’m not sure how to “finesse” it so here goes:

Will your current peer group empower you to reach your deepest dreams goals and your life’s purpose?

Will they hold you accountable to a high enough standard or will they let you slip back into your old comfort zone?

Will they feed your ideas and give you input to help you overcome challenges you face along the way?

Will they support you when you’re having a tough moment?

Do they inspire you to keep performing at your highest and best capabilities?

If not, what are you doing about changing that?

It’s ultimately up to you to find and create the peer group that will help you live the life you want to live.

Secret #4: Your net worth never exceeds your self worth.

Getting your internal foundation right is what the successful people I work with make one of their top priorities.

As one of my mentors, late great Jim Rohn said: “Income rarely exceeds personal development.”

Without building up an undefeatable mindset, installing a massively fit physical life and releasing the toxic waste of anger and sorrow from your emotional core, how can you possibly walk out into the world and do amazing things?

The world really is a mirror, giving us not what we want but who we are.

That’s one of the reasons I’ve invited my good friend Tom Corely form the USA to join us at Wealth Retreat.

He’ll share the findings of his 3 year Rich Habits study of self made millionaires – boy was this a game changer for attendees last year

Secret #5: The moment you become successful you’re in a very dangerous place.

Few things fail as well as success does.

On the other hand – I’m a real success at failure.

I’ve had more than my share of failures, many of them self inflicted, but each time I got up and tried again.

What I’m trying to say is that it’s so easy to arrive at the summit and then begin to stop doing the very things that got you there.

Oh, and the real trap is getting it right first time or being lucky and carried away by a property boom – the trouble is you think you’re smarter than you are!

I’ve found that masters never think like masters.

The reason they stay as masters is because they think like beginners.

If you’re not as successful today as you’d like to be, my question to you is…

“Where will YOU be in 5 years” – in all areas of your life?

Not just money, business, career and investments – but in all areas of your life?

Once you lay out your plans at Wealth Retreat (and we’ll help you gain clarity in the first 2 days), the expert faculty and I will give you all the tools, training, and support you need to:

Gain deep insight and clarity into your life purpose

Design a life that gives you deep joy and fulfilment

Create a step-by-step blueprint to make your most ambitious dreams a reality

Identify and overcome the deep blocks that are holding you back from showing up as your best self

And we’ll be doing this life-changing work in a lovely environment on the Gold Coast in June this year!

But don’t count yourself out from coming…

While in general the attendees at Wealth Retreat are already successful business people, entrepreneurs and investors, every year a group of aspiring investors and entrepreneurs joins us and get the type of information that propels them ahead of the pack – the type of information I would have loved to have when I started out.

You can learn more and register your interest here. or call Jo Fitt on 03 9591 8888 or email her – jfitt@metropole.com.au and she’ll answer all your questions.

Secret #6 The key to real wealth is gratitude

Gratitude, or appreciation for the good things that happen in life, is an essential part of building happiness.

When you’re going through a tough time it can be hard to remember to be grateful for the good things, but if you just look around you’ll find there is a stack of things you should be grateful for.

Things like:

You’re living in a great country at the best time in history

Your family and friends

Maybe it’s the job you have, the income you have, the relationships you have

I really hope this blog has been helpful.

And if you’re the kind of person who wants to exponentially raise your game and results and your life…

And if you are really ready to make vast improvements in your prosperity, positivity, productivity, performance, lifestyle and contribution to the people of our world, there is such a valuable opportunity I’d like to share with you.

By now you would have heard about my flagship event, Wealth Retreat

I only do it once a year (and have done so since 2006.)

It’s exclusive (only around 50 attendees plus the faculty attend) – but please don’t count yourself out.

It takes place over 5 days (but it’s a long weekend so you can’t really use work as an excuse.)

I bring along an amazing faculty of investment, tax, business, finance, property, share trading, economic and psychology of success experts.

And each year I’m amazed how the delegates in the room are many of the smartest, most successful, most decent, most giving and awesome humans I’ve ever met.

Those fortunate enough to join us at Wealth Retreat leave:

Knowing the insights, habits, techniques, hacks and ways of doing what only the top 1% of people in Australia know.

With new friends and the deep relationships with the kind of people they always wished they knew. People who inspire them to transform and show them models of possibility they never knew existed.

With a fire in their belly and a newfound mindset that translates into the finest investment, business, personal, social and fitness results they have ever experienced in their lives.

Like anything ultra-valuable, this annual 5 day event with me is not for everyone and isn’t inexpensive.

But every year over 20% of the delegates are return attendees ready to move up to the next level.

THE VERY GOOD NEWS:

This year my faculty includes:

Me 

Dr. Andrew Wilson, Australia’s leading property economist.

Tom Corley, a CPA and bestselling author and speaker who spent 5 years studying why rich keep getting richer. He’s flying out to join us from the USA and last year was one of the highlights of the event. People gave Tom a standing ovation

Pete Wargent, economic commentator and a chartered accountant who achieved financial freedom at the age of 33.

Ken Raiss  – director of Metropole Wealth Advisory, who’ll speak on tax, structuring, risk and asset protection for serious investors

Mark Creedon – business coach to some of Australia’s most successful entrepreneurs –including me and the team at Metropole. Last year he delivered one of the most highly prized presentations, so we’re extending his sessions and there will be special breakout sessions for business people.

Louise Bedford – a successful share trader and educator. Her presentations was eye opening for many attendees last year

Andrew Mirams –  finance strategists

Plus a swag of property experts

So…

If you want to join the others who are returning or the new attendees and you still want to take advantage of the early bird pricing you can express your interest by clicking here

I know that after past attendees have found that it costs more not to be at this event and miss all the learning than to invest in their seat. many wished they had not put off their decision to join us.

So definitely trust your gut – if this feels right to you and reserve your place before it’s too late right here

I can’t wait to meet you at Wealth Retreat 2019 and hang out with you and my world-class faculty for 5 of the greatest days of your life.

[katetkeith]

The Best Areas of Nottingham to Invest in Buy-to-Let

Nottingham is a centre for high-tech industry and a bellwether for the UK economy, yet is also one of the cheapest cities in the UK. In terms of yield, Nottingham is also one of the most attractive areas of the UK for buy-to-let investment.

[katetkeith]

Is the media creating the current property downturn? | PROPERTY INSIDERS [VIDEO]

We’re suffering a crisis of confidence and in my mind the media has a lot to answer for.

Is the media reporting consumer sentiment or is the media’s negative sentiment creating a crisis of confidence in property?

You can’t buy a paper or go on line without a headline warning us that property Armageddon is around the corner.

Sure, there’s a credit squeeze, but the average consumer has lost their confidence because of the media.

And the media keeps looking for experts chasing a headline.

Watch this week’s Property Insider video as Dr. Andrew Wilson chief economist at  My Housing Market and I discuss this.

Watch us discuss:

While the fundamentals are relatively easy to quantify and examine – consumer behaviour is the X factor – hard to predict

Worse with the 24/7 news cycle

Why the media loves hotspotting – it’s a bit like stock picking

The market turned around last year after that famous 60 Minutes program in October last year. Martin North gave 4 scenarios but they honed in on the worst scenario

Many of those who make predictions don’t have skin in the game – or come from a general economic or stock market background not property

Steven Keen got a lot of publicity

in 2008 in midst of GFC said property prices would fall 40% – lots of news coverage – prices fell 5.5% 

Had to walk 200km from Canberra to Mt Kosiosko wearing a T shirt saying: “I was hopelessly wrong on home prices! Ask me how.

Said he got the timing wrong – he said prices would fall 20% in 2011 and the market boomed – but got lots of publicity

Some say I’m  permanently optimistic about the property markets – but that’s not correct – I’m realistic – in fact I’m pessimistic about more locations that I think will do well – only 1% of properties are investment grade. 10 million properties in Australia avoid, regional, main roads most suburbs

Perma Bears – Doomsayers make money from their predictions

Harry Dent is back again in Australia

Confirmation bias – you read things to confirm your preformed beliefs

The rabbit hole of Google – you’ll keep reading articles that confirm what you just read.

[katetkeith]

Your Future Should Be Bigger Than Your Past. Here’s How to Do It

I recently got together with two of my best friends from high school, Jamie and Jason.

We’ve been friends for over 30 years.

We don’t see each other as often as we’d like to because life is busy.

But when we do it’s always amazing.

Sipping tea in the Sugarhouse neighbourhood of Salt Lake City, we found ourselves, as we often do, reminiscing about high school.

Sports, parties, weekend antics — you know how it goes.

But then, the conversation shifted from the past to the future.

It started simply enough, with one of us asking, “If we were having tea three years from now in this exact same place, sitting in these exact same chairs, what would need to happen for each of us to be happy with those three years?”

Talking about high school was great, but this was so much better.

You could immediately feel energy and confidence enter the room as we started scheming.

Turns out, we are not the first people to entertain this question. Dan Sullivan wrote an entire book about it.

In “The Dan Sullivan Question,” he talks about designing a question to help people make their future seem bigger than their past.

“The moment your past becomes bigger than your future, you die,” he said, when I eventually heard him speaking on a podcast.

I don’t know if I would go that far, but I do think he is on to something very important.

For starters, how can you ever expect to be where you want to be in three years if you don’t start thinking, planning and talking about it now?

Is that really something we want to leave to chance?

So let me ask you the Dan Sullivan question:

If you and I were to meet three years from today, what would you want to have happened for you, personally and professionally, in order to consider those years a success?

Think about that, and please leave a comment below.

[katetkeith]

6 Tips on Building Wealth Independent of Your Profession or Business

I’ve recently seen a few professionals and some business people who’ve left their wealth building a little too late in life. 

They’ve come to me for advice on property investment in their 50’s (and one in his 60’s) saying they left their run late, hoping their business or practice would have provided for their old age.

And now they realise it won’t!

By the way…

Even if you are an employee or self employed,  this blog will be useful for you, because I’d like to share 6 important tips on building wealth independent of your job, profession or business:

1. Risk comes from not knowing what you’re doing, so pay the price to learn what you’re doing!

Sounds obvious I know, but most business owners and many professionals I know are ego driven – that’s what makes them successful in business – but they are uniformed investors.

As you can imagine this is an explosive combination.

They tend to let their business or professional success blind them into thinking that they know more than they really do in the investment arena.

2. Make sure your investment plan matches the financial stage you’re at.

I see many people with a good job, or sound professional or business income invest in what they think are “cash flow” investments. 

They don’t really need more cash flow at this stage of their lives – they don’t realise cash flow won’t get them out of the rat race.

What they should be doing is to put their money into capital growth investments that would help them build a substantial asset base – that’s what will get them out of the rat race.

The lesson: make sure your investments match your current financial situation, don’t just follow your old plan that got you to your current position.

Even if it worked brilliantly it may no longer apply to your current situation – that’s because if you have your ladder up against the wrong wall, every step will get you further from your destination.

3. Concentrate your investments in fewer, better deals

There is a cost to every deal, so make sure your deal is meaningful enough to merit the time, focus, and expense.

The wealthiest people believe in concentration of capital.

They become experts by doing the same thing over and over again, rather than one hundred things once.

4. Invest a portion of your time and energy (at least 10 percent) to creating and executing your wealth plan

Building a successful business or profession is obviously going to be a big part of that plan, but it cannot be the only leg to the plan.

Why? 

Because there will be a day you may no longer have the business.

Either you may sell the business, then you’ll need the skills of how to invest the cash from the sale to generate the passive and passive residual income you need.

Or the business could fail, in which case it will be even more important to have “run some of your money from the table” and have this money invested wisely in a way that ensures your financial future.

The same goes for professionals and employees…

Ken Raiss, one of the faculty members at Wealth Retreat 2019 is my partner in Metropole Wealth Advisory.

Ken’s wealth plan calls for him to build our business into a great mid-sized Financial Planning and Wealth Advisory firm, but he doesn’t stop there.

He also invests a portion of his time and financial resources in building his family’s investment portfolio.

Like Ken, if you’re a professional or own a business it’s important that you have a wealth plan bigger than just running your business or running your professional practice.

5. Leverage your strengths when looking for investment opportunities

There is a learning curve in mastering any investment vehicle, which is why it is so valuable to leverage the advantages you already have.

Do you know a specific industry and have a network of contacts that give you information advantages? 

Of course if you are investing in publicly traded securities you can’t trade on “insider information” – that is information that is not publicly available.

Which is one of the reasons I like investing in property, since I not only get paid for my “insider information” but it’s totally ethical and legal to trade on this privileged information!

Take the example of finance strategist Evette Anderson, who has been part of the Wealth Retreat faculty for a decade.

Apart from running a successful finance advisory business, Evette and her husband have been active and very substantial property developers for many years.

She can leverage her experience, her network, and her research to supercharge her returns and access some great investments.

What are your advantages?

What contacts, expertise, and experience do you have that you can leverage?

6. You must become your own most trusted investment advisor—no one can do it all for you

Too many business owners make the monumental mistake of thinking that investment success is a matter of choosing the right investment advisor to handle their wealth for them.

It costs them dearly! 

Sure you need a great team around you and you don’t need to be (in fact shouldn’t be) the smartest person in your team.

But no one—no one—will be able to manage your wealth like you can.

So while you need good advisors, you need to have the sophistication to filter and use the best of your advisors.

This means you’ve got to invest the time, energy, and money to master the skill of managing your own net worth.

I’ve watched a number of business owners spend 10 years building a multi-million business, then through dumb investment decisions they lose much or all the money they had made with their businesses.

If you want my specific model on how to build your business and your wealth in lock step with each other then join me at Wealth Retreat  2019 on the Gold Coast from June 8th (it’s the long weekend – so no excesues!)

Our faculty will include my business coach (there will be lots of business people and professionals attending so we have some extra special sessions especially for them), and a swag of structuring, tax, property, finance and share investment experts.

That’s why I urge you to find out a bit more about Wealth Retreat 2019 by clicking here, where you’ll not only learn from a top faculty of experts (not theorists) but you’ll also meet an instant new peer group of movers and shakers – a group of already very successful investors, business people and entrepreneurs and a number of others who are on the way to achieving the success they’re looking for.

This is very different from other seminars – and it is NOT a motivational seminar – and yes there’s follow up afterwards to ensure you take action afterwards.

Please get all the details by clicking here or call  Jo Fitt 03 9591 8888 or email her jfitt@metropole.com.au and express your interest.

And I chat with everyone who would is keen to attend to make sure it is suitable for you.

So who else will be there?

When you chose to join us at Wealth Retreat this year who will your new peer group be?

Firstly this year it looks like around 20% of the attendees have been before.

Some are coming for the second, third or fourth time.

You may ask why do they come back if they are successful. I could say they are successful because they come back.

The second group of attendees are high net worth individuals, property investors and business owners.

They come to grow and nurture their property portfolios by updating their Wealth Plans – you’ll walk out of Wealth Retreat with a structured plan to create Lifetime Wealth and Leave a Legacy.

The the bulk of attendees are experienced property investors with between 2 and 10 properties, who are looking to expand their network and super-size their investing and learn skills and techniques that they would not find elsewhere to enable them to build a property investment business.

Wealth Retreat works so well because each of these groups of people adds something essential to the mix.

But don’t count yourself out!

Every year a few well read beginners join us at Wealth Retreat to shortcut their financial journey by developing an instant peer group of successful people.

This year we will be having special sessions at Wealth Retreat to assist investors with their biggest challenges including finance and empowering them with proven techniques for our changing markets.

Many of the attendees want to learn how to step out of the world of being paid by the hour and into the world of building their own property investment business.

In fact I can think of many past graduates of Wealth Retreat who left their jobs to pursue their passions.

If this interests you register your interest on line by clicking here, or better still email or call Jo Fitt now on 03 9591 8888, jfitt@metropole.com.au to find out more.

BY THE WAY…

When I observe the most successful participants from Wealth Retreat over time I notice that those people who have “made it” financially all have moved to a place that the money isn’t what motivates them.  

Sure they enjoy the money, but it is not their main driver.

Let me explain… money is a sufficiency need.

Once you have enough of it, it ceases to be important.

So what is it beyond the money that pushes and prods and sparks and motivates you to perform at your best and to build and dream and dare?

Maybe you’ll need to come to Wealth Retreat and find out how to pursue your passion.

Please register your interest on line by clicking here, or better still email or call Jo Fitt now on 03 9591 8888, jfitt@metropole.com.au to find out more. If you’re interested in coming I’d love to chat with you personally to see if it would be worth your while.

[katetkeith]

4 ways you could be sabotaging your borrowing capacity

To sabotage means to deliberately destroy, damage or obstruct something.

No one wants to do that when it comes to their finances, do they?

But the reality is that many people do without even realising it. 

How do they do that?

For starters, they have too much bad debt when they’re applying to borrow good debt.

What’s the difference between the two?

Good debt will help increase your wealth, such as borrowing to invest in property or to buy income-producing assets.

Bad debt will just make you poor plain and simple.

Regardless of the state of the lending landscape, you should always put your best financial foot forward when applying for a loan.

So here are 4 ways that you could be sabotaging your borrowing capacity without realising:

1. Having too many credit cards with high limits

Don’t get me wrong: there is nothing wrong with having credit cards – as long as you pay them off in full every month. 

Because, when it comes down to it, why not use someone’s money instead of your own?

The caveat being that you must pay off the balance in entirety every month.

If you can’t afford to do that, you can’t afford to have credit cards.

But there’s more to it than that…

When lenders assess your home loan applications they will take into consideration your credit card limits.

That’s right, the limits. Not the balances.

So if you have three cards with combined credit limits of $20,000 that can have a hugely negative impact on your borrowing capacity.

Consider how much credit you really need – $5,000 is ample for most people – and reduce the number and limits of credit cards to see your borrowing power soar overnight.

2. Personal loan purgatory

For most people personal loans are bad. 

They attract high interest rates and are generally used for things that depreciate in value – like a new car or the latest TV.

Too many personal loans will also significantly impact your borrowing power and here’s why…

When lenders see that you have a “thing” for personal loans, it makes them think that:

You can’t save.

You live beyond your means.

You use personal loans to pay down other bad debt like credit cards.

If you have personal loans, get rid of them fast!

3. Tardy bill payer

No one’s perfect so we can all forget our bills from time to time.

But let’s face it: being a tardy bill payer doesn’t look good.

Lenders will wonder, that since you can’t you keep on top of your bills, how on earth will you meet a mortgage repayment?

The advent of internet banking has made paying your bills easier than ever.

Consider setting up automatic payments for regular bills so your financial paper trail is as squeaky clean as possible.

4. Changing jobs or becoming self-employed

Unless you live under a rock you’re probably aware that the days of having one job for your entire life are done.

Not only does technology seem to create new jobs by the day, the global world that we live in means that job mobility is also more common.

Now changing jobs to progress your career is a good idea. 

But having a CV that shows you have as much staying power as a nag coming dead last at a country race meet will not impress lenders.

Again, they’ll worry about whether your propensity for changing jobs regularly could result in you one day struggling to pay your mortgage.

Alas, the same can be said for the self-employed – at least in the beginning.

For the first two years of self-employment, borrowers who were previously attractive to banks suddenly have to join the outcast queue.

That’s because lenders are concerned about the sustainability of income when someone first becomes self-employed.

The good news is that once they have two years of tax returns under their belt, lenders will start taking their calls once more.

Hopefully by now you can see that there are a number of ways you could be unknowingly sabotaging your borrowing power.

But all is not lost. 

Understanding how you can make your financial footprint as clean as possible is one of the keys to loan success.

The bottom line is…

Even though banks have changed drastically in the past few decades, everyone still have to put their best foot forward if they want to make their property dreams a reality.

[katetkeith]

The Self-Startler

Years ago while dating, I encountered a particularly charming creature.

He was absolutely fascinating, charming and charismatic. 

From the moment our eyes met across the crowded room, I was captivated.

Things moved quickly, my friend.

Over the next few days, he showered me with attention and affection that left me spinning.

Finally it seemed there was someone who truly understood me, and may have even been ‘the one’. (Keep in mind I had reached this conclusion within a couple of weeks of meeting him).

It all happened so fast.

My usual safety mechanisms reserved for the dating field never even came close to functioning.

I was swept up in his magnetic vortex.

Then, as suddenly as it had started, there was a deafening silence.

Despite my best efforts to contact him, I didn’t hear a thing.

No more phone calls, no more letters or cards in the mail, and definitely no sign of flowers being delivered.

After a week of this total rejection, I received a note that read: “Won’t be able to see you for a while. Need to put the brakes on. Take care. We might catch up in the future.”

Hmmmm…  What in the heck happened there?

Well… he freaked himself out. 

In a moment of clarity, his happy-go-lucky bachelor subconscious screamed at him: “Back off mate! At this rate she’ll be thinking about picket fences by next month!”

So, at the point of realisation he was in too deep, he decided to run like a frightened rabbit.

Either the sky was the limit for the relationship, or he needed to dump me – straight away.

I’ve seen many self-startler types begin investing.

They start with a whirlwind of activity, attend exciting courses, read all the books they can get their hands on and generally begin a love affair with investing.

To begin with, they buy a bucket-load of properties in quick succession, and leverage themselves up to the hilt.

They tell every person in their life about how they will retire from their jobs, become a self-made millionaire and live a life of comfort.

This can now go one of two ways.

The self-startler could end up going onto steady investing greatness.

It’s possible they will learn the secrets of effective investing, and ultimately calm down their manic learning curve, and develop a profitable method in a steady and predictable way.

Alternatively, as I have seen so many times in the past, they burn themselves out and blow up their accounts in a blaze of glory.

Brief, yet spectacular.

Generally, downright terrifying to watch.

The signs of a potential self-startler can be very disturbing to loved ones and spouses.

I was recently sent an email by the wife of a new trader which simply stated:

“Help me! I don’t even know my husband any more. He’s discovered trading, and this is much more attractive to him than I will ever be. He’s up half the night trading the US market and has quit his job to trade the Australian market. What can I do?”

Living with someone who is walking on the razors edge is never a positive experience.

Success in investing is a terrific goal, but it is worthless if the rest of your life is in shambles.

The most successful people in any endeavour tend to have a high level of self-awareness.

This is true of profitable traders and property investors as well.

Most good investors have achieved a level of balance in their lives.

They value their health, their personal lives and often their spiritual lives.

Reading between the lines of Market Wizards by Jack Schwager, the majority of superior traders have attained a healthy balance in their lives.

Occasionally an obsessed, power-hungry person will become a good trader—but these people are the exception rather than the rule.

The same goes for property investors  

Initially, you may find that learning about the property market is occupying your every waking moment.

Over time this feeling should dissipate.

Outstanding investors spend time taking their dog for a walk in the park, they volunteer for tuck-shop duty at their kids’ school, and they often help their community by giving money to charity.

They look after their health and their families, as well as their wealth.

Developing mastery over your own mind-set, and maintaining a balance in your life is just as much a contributor to your investing success as developing appropriate strategies.

[katetkeith]

[Podcast] This will make me a better property investor | What does the Federal Election mean for our beleaguered housing markets?

Want to know what will make me a better property investor in this difficult market?

I expect that the property market is going to pick up.

And I expect that the Melbourne and Sydney property markets will go gangbusters.

I have no idea when this will happen.

Now just to make things clear…those aren’t contradictory statements.

The first is an expectation, the other is the rejection of a forecast.

And if you want to be a successful property investor, you’re going to have to understand this important difference.

It’s one thing to look at history and see that the property market cycles with some frequency and then form a baseline of what to expect in the future with this knowledge.

However, it’s quite another thing to predict the precise timing of the turning points in the property cycle.

And it’s another thing entirely to devise a strategy that reacts to those predictions.

Property analysis isn’t black and white, yet some people believe they can predict markets and they tell you about (or sell you into) the next property “hot spot.”

There’s an important grey area, which is expecting certain events to occur without having an opinion on exactly when, where, why, or how.

I’ve been investing for over 40 years now and in that time there have been 8 significant property cycles.

I can use this as a very rough rule of thumb for the future, based on the idea that we’ve got even more positive fundamentals to drive our property markets than past generations had.

While there are many sound fundamentals underpinning the long-term prosperity of our property markets, two of the big ones that give me comfort are our significant population growth and the wealth of our nation.

This reassures me that my long term plans are sound and based on what has always worked – rather than trying to pick what is right for the current market.

Now I have an expectation:

If I plan on investing for the next 30 years, I should count on things getting ugly at least six times.

Maybe it’ll be a little more, maybe less.

But I have an expectation, a rough idea of how the game works.

Yet it’s not a forecast.

A forecast is, “The property market will turn in the second half of 2019” or “Australia will have a recession in the first half of 2021.”

That’s precision, with a disregard for both the history of people making such forecasts and the events that cause these turning points which, a lot of the time, is something that can’t be foreseen.

The important difference between an expectation and a forecast is the impact it has on my behaviour.

If I expect property booms and property downturns, I won’t be surprised when they come.

I know they’re a normal part of the game.

But since I’m not sure when they will come, I won’t attempt to do much about it.

Attempting to do something about it – trading, timing, buying and selling – is the root of most investors’ mistakes.

A forecast suggests that you know when something will happen, which is permission to act on it.

There’s little reason for a forecast other than acting on it.

But unfortunately this creates two problems:

The false hope of knowing exactly when the property market will turn. Even the experts keep getting their forecasts wrong.

The high-probability of regret from trading around these forecasts.  Just see the results all the hot spotters have achieved, or the lost opportunity for those who tried to time the market.

In other words…

Expectations rather than forecasts make me a better property investor.

What does the Federal Election mean for our beleaguered housing markets?

So finally we have the federal election campaign underway – what does this mean for our beleaguered housing markets?

Home values across Australia’s largest capital cities have been falling since they peaked in late 2017.

In fact, it looks like this will be the biggest and longest national decline in home values for almost 40 years (or since records began in 1980).

Consumers have lost confidence, first buyers went on strike now sellers are holding back unless they really have to sell

And while the property markets have started 2019 with a positive note, with more interest from buyers, auction clearance rates rising, the banks chasing more business another hurdle has been put in our way.

A federal election and elections create uncertainty and when there’s uncertainty buyers put their hands in their pockets.

Dr. Andrew Wilson and I discuss the likely implications of the election campaign.

Election date is Saturday 18 May

This will clearly disrupt a recovering market with agents avoiding auction sales campaigns in the next month 

At the same time the late Easter and holiday period will see a closing down of the property market at least till the end of April

This means the current record decline in seller activity will be amplified over next month

Buyers will also be wary given until they know who will win the election

The election campaign will end close to the winter market shutdown that commences after Queens Birthday long weekend (June 10)

The election will act to distract the property market

Buyers and sellers wary of election outcome – so will be sidelined

The election result is likely to be closer than previously thought based on latest polls. And the market hates uncertainty

The significant Labor Tax policy will be the focus of scare campaign exacerbating all the above

Watch the video of our discussion here: What does the Federal Election mean for our beleaguered housing markets? | Property Insiders Video

Guest: Dr. Andrew Wilson – MyHousingMarket.com.au

[katetkeith]

Here’s why our property markets are not picking up

We’re now experiencing what will be the longest and deepest property market downturn in modern history.

But it shouldn’t be that way!

Previous property slumps have been due to rising interest rates or economic recessions or high levels of unemployment, but currently our economic and property fundamentals are really not that bad.

Sure, our economic growth is slowing a little, and yes wages growth is slow.

But our population is growing strongly, we’re creating heaps of new jobs and unemployment is at low level.

One of our big problems is consumer confidence – actually the lack of it.

It started with a “buyers strike” in late 2017 as investors in particular left the market, in part due to difficulty getting finance.

And then in October after that infamous 60 Minutes show that scared the pants off many would be investors by predicting a 40% fall in property values, investor sentiment dropped even further.

More recently property sellers have gone on strike – discretionary sellers (those who have no urgency to sell) are not bothering putting their properties on the market at a time when the chance of getting a great price is low.

This has particularly affected Australia’s two largest property markets, Sydney and Melbourne, as this is where investor activity was the highest and where property values grew the most leading up to this downturn.

So what are we waiting for?

Well…2019 started out with some promise, with more buyers back in the market, the declines in values slowing and auction clearance rates rising (albeit on smaller volumes.)

But now uncertainty has crept back as we’re waiting for the results of the federal election, so little is going to change over the next month.

Home buyers and sellers are waiting for some clarity for the future.

However, one thing that has become clear is that the next move in interest rates will be down, and while this will help confidence a little, the banks are still giving property investors a hard time applying tight credit standards which many would consider unreasonably restrictive making it hard for investors to borrow.

At the same time our economy is slowing down with the RBA downgrading its projection of future GDP growth and employment growth and this is concerning many business owners.

Here are some other factors holding back our markets

Self-managed super funds (SMSFs)

There’s no doubt some naïve investors were misled into buying properties in an SMSF by advisors with vested interests.

However, for others, setting up an SMSF to own property was a great way to secure their financial future.

However today there are only a few lenders approving finance for SMSFs to own residential properties meaning there are fewer investor transactions in SMSF’s.

Disincentives for foreign investor activity

There are less foreign investors in the property market today.

Our governments pulled the welcome mat out from under the feet of foreign investors by imposing penalty state taxes including stamp duties and withholding tax.

This together with the Chinese government crackdown on capital leaving the country has stemmed the tide of foreign investment into Australia, particularly in the residential market.

Settlement risk

There is still an oversupply and a continuing pipeline of completions of the wrong types of property – high rise apartments – particularly in Sydney, but also in Brisbane and Melbourne.

On completion many of these apartments are valuing in below contract price at a time when nervous lenders are requiring larger deposits, and this has significantly increased the settlement risk for off-the-plan apartments.

Taxation changes proposed by Labor

Fears of the proposed changes to negative gearing and Capital Gains Tax if Labor win the election are having a significant effect on consumer sentiment.

In fact, it seems like taxation will be one of the major considerations that determine the result of the upcoming Federal Election.

So it looks like our markets will be on hold at least until the election is over on May 18th – and then things could get even more interesting.

[katetkeith]

5 signs you should fire your property manager

For any landlord with an investment property, your property manager should be your greatest asset.

While it’s always possible to manage your own property, it can be so much smoother to have a professional do it for you. 

They can help you find the best tenants, manage (and chase) rent collection, keep up-to date on maintenance and repairs, and act as the important and impartial “go-between” for you and your tenants.

But how can you be sure your property manager is doing the best possible job?

How can you tell when they’re starting to slack?

If your investment dream is turning into a nightmare, consider these 5 signs that it might be time to find a new property manager.

1. They’re quiet… too quiet

No one likes being bombarded by endless calls, texts and emails, but it’s much worse if your property manager never checks in. 

They should be happy to report back to you regularly and give you updates as often as you request them, but if you feel like you’re getting to know their message service more than them, take this as an alarm bell.

For instance, if you can’t remember the last time they offered you a market comparison or recommended a rental increase, that is cause for concern — as you could be missing out on potential income.

Managing properties is their job, and communicating with landlords regularly should be part and parcel of that job description.

2. They fail to give you a monthly report (or send it in late)

Your property manager should be providing you with a report each month that details your property’s financials, like the budget, income, expenses, and any deductions (such as repairs and maintenance).

A highly detailed report will also include a breakdown of the amount collected in rent and anything owing in arrears, as well as planning for maintenance, property market updates and any other important notes you need to know.

3. They charge like a wounded bull 

Hiring a property manager is just one of those expenses that come with having a property investment, but don’t be fooled into paying too much for their expertise.

Property manager fees vary on a case by case basis, but generally you should be paying somewhere between seven to 10 per cent of your weekly rental income.

If you’re being charged over this amount — especially if they’re not doing a thorough job — then it might be time to start looking around for another manager.

4. They have terrible taste

In tenants, that is.

Having a friendly property manager is great.

Having a property manager who is overly friendly and too trusting is not.

If you’re finding your property is frequently rented out to poor tenants (whether they pay rent late, host wild parties or generally cause a nuisance), you can assume your property manager isn’t vetting the applicants properly.

Don’t be afraid to talk to your property manager to try and get on the same page regarding the type of tenants you’re looking for.

Any property manager worth their salt should be able to take your request into account and find someone more suitable.

5. They don’t inspect the property regularly

In Australia, it’s standard practice for property managers to conduct regular inspections of the property.

Depending on which state your property is located in, this can vary anywhere between once a year to four times annually. 

It should include a decent inspection of both the inside and outside of the property, and a detailed report should be provided afterwards.

If your property manager is failing to do this, then simply put, they’re failing to do their job properly.

A good property manager can make it seem like owning investment properties is a total breeze — and you only realise quite how valuable they are when you experience the full impact of working with a dud one.

Remember that at the end of the day, you invest in property to make a profit and grow your wealth.

If your property manager isn’t doing their best to optimise your investment, then they’re ultimately costing you money.

[katetkeith]

The most valuable thing your money can buy…

We all know that money can’t buy happiness.

If you’re unhappy before you make a lot of money then extra cash isn’t going to suddenly change your outlook on life.

I have written in the past about people who win Lotto, and the fact that many of them end up losing their fortune.

They’re not used to being financially responsible and they think that coming into a large amount of money means never having to think about it again.

Which, of course, isn’t true.

The more money you have, the more responsible and cautious you need to be with it.

It’s hard work being financially responsible and some Lotto winners even said that the money made them miserable!

It’s not hard to imagine is it?

So we know that money can’t buy happiness.

But what can it buy? 

Well, something much more valuable: time.

Your time!

A recent study published in the US medical journal PNAS, found that people who buy time by paying someone to complete household tasks are more satisfied with life.

This was just as true for middle-class earners as it was for high net-worth individuals.

Here is why you should start using your money to buy time, or investing in time capital, as it’s known:

1. YOU’LL STRESS LESS

When you’re time-poor, it’s easy to feel stressed about your long to-do list. 

Insomnia is a big problem these days and I bet that most insomniacs have too much stuff to do rather than too little.

Rather than using your money to buy things that will comfort you only for a short period, you can buy your own time back by outsourcing as much work as you can.

Even if it means you’re able to claw back a just an hour or two a day by paying someone to run your errands, it will be worth it because you’ll be less stressed as a result.

2. YOU WILL HAVE FEWER REGRETS

John Lennon once famously said that ‘life is what happens to you when you’re busy making other plans.’

How true.

The thing is: you need to make sure your life isn’t all about making other plans, that there is time to reflect and enjoy a life you’re passionate about.

If you work really hard to earn lots of money and then you never have time to enjoy that money then what is the point?

You don’t want to regret working so hard that you never had time to enjoy whatever it was you were working so hard for.

So what should you do? Keep working hard and doing what you love, but buy extra time by outsourcing any chores that take up your downtime.

3. YOU’LL APPRECIATE TIME

Most of us waste time.

It’s only human.

We get distracted or lazy, or we remain indecisive about what to do and so we do nothing.

We vow to go for a run on the weekend, but we end up stuck to the couch, telling ourselves we’ll go tomorrow until tomorrow becomes next week.

But when we buy time, we’re less likely to waste it.

We know how valuable (and expensive) it is and so we make the most of that hour or two we have to ourselves or with our loved ones.

It ends up being time well spent.

4. YOU’LL HAVE MORE ENERGY

Caffeine is the drug of choice for most of us each morning, but there is a better way to get energy.

And that’s by doing nothing.

If you don’t ever get a chance to switch off and zone out, to refuel the tank, then you will crash and burn.

Your time away from work is just as important as your time at work.

People think they’re two very different worlds, but far from it.

They both influence each other.

In order to be successful, I’m talking long-term sustained success, you’re going to need some precious time to recharge.

5. YOU WON’T RESENT OBLIGATIONS

We’re all being pulled in a million different ways these days.

There are so many demands on our time, from work to family to social obligations.

But if you buy yourself some time, to do whatever you like, then the various obligations won’t seem like chores.

You’ll be more readily available to others because you made sure, first and foremost, that you were available to yourself.

Time isn’t valued enough in our society. 

Most people are working hard for money’s sake alone, even though we know that it won’t make us happy without a well-balanced life within which to ground it.

No one asks each other if they’re getting enough time, if they have bought any great time lately.

Can you imagine that?

We need to start prioritizing time, and if the only way we can get more of it is to buy it then that’s what we should be doing.

It’s a worthy investment to make.

[katetkeith]

Insights from the most successful investors

If you’re like me, you like reading motivational quotes.

I’m particularly intrigued by those of successful investors.

Yahoo Finance recently ran a selection of these.

Here they are…

George Soros: Good investing is boring

“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”

Howard Marks: Investing is about more than selecting the asset

“Smart investing doesn’t consist of buying good assets, but of buying assets well. This is a very, very important distinction that very, very few people understand.”

Jack Bogle: Losses are a reality of the market

“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.”

 Bob Farrell: Don’t join the herd

“The public buys the most at the top and the least at the bottom.” And, “When all the experts and forecasts agree – something else is going to happen.”

Jeremy Grantham: Recognise your advantage over professionals

“By far the biggest problem for professionals in investing is dealing with career and business risk: protecting your own job as an agent.

The second curse of professional investing is over-management caused by the need to be seen to be busy, to be earning your keep.

The individual is far better-positioned to wait patiently for the right pitch while paying no regard to what others are doing, which is almost impossible for professionals.”

 John Templeton: Don’t forget about taxes

“For all long-term investors, there is only one objective – maximum total real return after taxes.”

Barton Biggs: There are no relationships or equations that always work

“Quantitatively based solutions and asset allocation equations invariably fail as they are designed to capture what would have worked in the previous cycle whereas the next one remains a riddle wrapped in an enigma.”

Benjamin Graham: Beware of forecasts

“It is absurd to think that the general public can ever make money out of market forecasts.”

Philip Fisher: Know the value of your investments

“The stock market is filled with individuals who know the price of everything, but the value of nothing.”

Warren Buffett: Be greedy when others are fearful 

“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.”

Ken Fisher: Keep history in mind

“You can’t develop a portfolio strategy around endless possibilities. You wouldn’t even get out of bed if you considered everything that could possibly happen….. you can use history as one tool for shaping reasonable probabilities.

Then, you look at the world of economic, sentiment and political drivers to determine what’s most likely to happen—while always knowing you can be and will be wrong a lot.”

Charles Ellis: Invest for the long run

“The average long-term experience in investing is never surprising, but the short term experience is always surprising. We now know to focus not on rate of return, but on the informed management of risk”

Isaac Newton: Markets are irrational

“I can calculate the movement of stars, but not the madness of men.”

Mark Twain: We can learn from the past

“History does not repeat itself but it does rhyme.”