Hi friends,
Welcome to your May 2021 newsletter.
It’s true, property prices are surging.
There have been price rises across 85.7% of total Aussie suburbs in recent months, with March recording the fastest national capital growth rate in residential housing since 1988, according to CoreLogic.
If ‘a rising tide lifts all boats’...
I’d suggest, ‘record low mortgage rates, and government home buying and building incentives, lifts all properties!’
Yes, anyone can make money in this market by simply buying, holding, and hoping and praying the market continues to go up.
But… just remember, you can’t have a great boom without a great bust!
To be clear...
I’m not predicting an Aussie market property crash anytime soon, (I just think things will continue to rise at a slower pace), but ‘buying, holding, hoping and praying’ has never been my style.
It’s simply too risky to buy at all-time highs, and then relying on passive outside factors, for my money.
In business, you want to control the outcome whilst reducing or eliminating your risk.
In the business of creating wealth through property, you do this by ADDING VALUE.
This was the whole premise of my best-selling book, ‘The New Way To Make Money In Property Fast’ which featured 6 active strategies which ADD VALUE to property.
See, wealthy people know, ‘YOU do the work, not the market’.
And if you wish to be financially free within 5 years or less, simply buying and holding will not achieve this for you, in my experience.
The world right now is engaged in an unlimited money printing experiment...
Unlimited money printing to an economy, is like heroine to a drug addict. Each time in order to achieve a similar high, a bigger and bigger dose is needed.
Eventually the drug addict will either die from an overdose, or will have to go into rehab, the hard way.
By way of example, the US stock market right now is at all-time highs, for no real reason other than unlimited financial stimulus.
History shows, this can’t go on forever... and we know what follows a boom....
Traditionally, US stocks have an average Price-to-Earnings ratio (P/E Ratio) of about 15. The P/E Ratio is a measure of value, and a P/E of 15 means it takes 15 years of current earnings to pay for the share and get your initial investment back.
Currently the average market P/E Ratio’s is around 45! (That’s 200% above normal!)
Case in point: Tesla (TSLA), a market darling, benefits from massive government incentives of its products, pays no dividends, makes huge losses from the sale of its cars, and has a P/E Ratio of 1,186... and is rising fast, now within 18% of its all-time highs.
Does this make sense?
Now, not to single out any stock or company, because whilst I take issue with the massively over-valued market valuations, my main issue is this.
If you buy a stock, there is nothing you can do to add value to your investment.
Sure you can purchase the products or services of that company, but that is not going to substantially increase the company value.
So, you are left ‘buying, holding, and praying’ for the market to keep rising.
A better strategy is to buy an investment where you have not only direct control, but the ability to ADD VALUE to that asset quickly.
You could buy a run-down tired property, below market value, and add value through a quick cosmetic renovation.
Or you could buy a run-down, tired but good business, from a run-down, tired and soon-to-be retiring business owner, and inject that with new energy and new ideas or products...
Or even better, you could get on-board with one of the most unique, on-trend, investment and business skills in the world... you could learn to buy, renovate and sell (or hold), websites for profit.
Yes! It’s very similar to our property strategy, but we use digital assets instead. You don’t even have to leave home, and you have a worldwide market that’s booming.
We only present this strategy twice per year, and your last chance this financial year is happening soon. Check out our Gift of the Month below for details.
Until next time, please enjoy our expert’s Success Tip videos, and adopt this KEY habit of success in all areas of your life...
ADD VALUE to everyone you meet and everything you do.
Be Awesome.