Take a look in the mirror…
There’s no doubt about it even when I go to barbecues, I’m really fascinated by the different types of people that want to get into the property market.
So I guess what I’m talking about here is understanding what type of investor you are. We certainly got the average Aussie, and then we’ve got the educated investor as well. There is a massive difference between these two – read on and see which group best describes you.
The Average Aussie:
- Certainly, the average Aussie never really get started properly. They often start their excuses with “would’ve, should’ve or could’ve”.
- They are seeking out and receiving advice from well-meaning family and friends who absolutely love you. But at the end of the day, if they’re not successful property investors, perhaps they might not be the best people where you get your property investing advice from.
- They are VERY hard working and are stuck in the rat race; exchanging their time for your employer’s money.
- They are paying the full amount of tax – who wants to do that? They are so focused on saving money that they miss out on the opportunity to legally implement tax diversion strategies and grow their wealth at the same time.
- They are missing out on wealth creation opportunities that they don’t even realise exist! This is because they aren’t getting the help of a coach or mentor.
And finally, the Average Aussie is saying “It’ll be right, how hard can it be? I’m just gonna buy any old house and become a property investor”
The Educated Investor
- On the other hand, if you’re an educated and savvy property investor, you’re taking action.
- You know what needs to be done and you are focused on achieving that.
- You’ve had the realisation that property is the wealth creation asset that you want to use to make sure you can secure your financial future.
- You are getting advice from others.
- You’re getting advice from independent people who are experts in their industry – accountants, brokers, solicitors etc
- You’re working smarter not harder, but they definitely have moral.
- You’re minimising the amount of tax that you have to pay; which of course means that your overall cash flow is much better.
- You’re capitalising on opportunities as they come by because you have got the confidence to be able to say “Yep that’s my next opportunity!” You also know that you aren’t the expert in all fields – You’re putting your hand up and saying “Hey, I need some help”.
And most importantly, the Educated Investor has their mindset right! They are disciplined and focused on making money, not saving money.
So there you go. I challenge you to have a look in the mirror and ask yourself…
What type of investor are you?