We are in a bear market. There, I said it! So often we hear that the very key to a successful property investment strategy is to stick to the basics. Never has this been a more potent cure to the economic disease that investors have to fight off in this recessionary climate.The property game has and never really will be rocket science
W
e are in a bear market. There, I said it! So often we hear that the very key to a successful Property Investment strategy is to stick to the basics. Never has this been a more potent cure to the economic disease that investors have to fight off in this recessionary climate. Here are a few 'gold nuggets' to bear in mind:
Creative Mindsets
Now this doesn't imply exotic financing arrangements that got us into this mess in the first place. At release, the property and stockmarket are going through a very difficult phase where property prices are either growing at sluggish rates or decreasing in many parts across the globe. Due to this many investors have simply stopped buying properties because their old methods had no effect anymore. Dare I say gone are the days of no money down finance deals, and add to these high interest rates that make property investment proposals seem extremely unattractive.
Ask yourself the question: Have you stopped buying, or is this market the catalyst that increases your property spending?
Warren Buffet, the world's most successful investor says that the market is a mechanism for transferring wealth from the impatient to the patient. Mr Buffett and his rich friends don't see the market downturn as an opportunity to scream, 'The sky is falling' at the top of their lungs. Rather the opposite is true that for the patient, savvy, ambitious investor, this is an ideal scenario to hunt for great value.
This really drills down to the core issue of differences in our mindsets. On the one side there are the patient value investors that look for an opportunity around every corner - literally! On the other side, there is the more cautious investor that tends to flock with the rest of the masses.
When all is said and done, the truth remains that there are always ways to make money from the property market. It is the difference in these mindsets and our ability to think creatively that separate the property gurus from the struggling investor searching for financial freedom.
Follow a systematic long term approach
Remember that investing in property is not day-trading shares. Although there might be similarities in analysing trends in these two investment vehicles, the time horizons are worlds apart. A successful property investment strategy needs to be underpinned by the realisation that you are in it for the long haul. Are there short term profits to be made? Off course there is, and certainly this something that you shouldn't turn a blind eye to. Be alert and make the most of these opportunities. However, true wealth creation is build by implementing a long term strategy of value addition in your portfolio, regardless of market ups and downs.
Transaction Structuring
This merely refers to your ability to purchase property within family trusts, self-managed superannuation funds and a range of vehicles in different tax jurisdictions across the world. Without getting technical here I would rest my case by merely saying every investor should have a tax-efficient structure in place aimed at maximizing your net return. This relates to income -, capital gains, inheritance- or any other related tax. Yes this requires more work and perhaps the input from professional advisors, but in the end it will amplify the growth in your portfolio to astonishing levels.
The property game has and never really will be rocket science. If you stick to these points and not let fear get in your way, it will provide solid foundations on which you can build a successful property empire.
Communicate directly with Wiehahn Gerber, the author of this article. Ask questions, send suggestions, comments, engage in conversation, or perhaps you would like to submit a project.
Click Here to ask a question, send a comment, or proposal.
You’ve found your perfect house and you are ready to make an offer. You sit down with your agent and decide on a price that seems fair given the condition of both the house and the local real estate market. You spend up to an hour deciding on y
Moving day is a double-edged sword for families because it can be both exciting and tedious, especially when you have children who are restless and have mixed feelings about leaving their old home. Here are some things you can do to make moving easie
Thanks to the explosion of T.V. shows featuring ambitious real estate investors quickly renovating run down homes for a pretty profit, it seems that everyone these days is trying their hand at house flipping. However, as is true for most things, it&r
What makes a condominium or apartment building truly amazing is not just its unique features, but also its usability and the desire people have to live within the building, long term. Below are four examples of amazing condos or apartment buildi
Puerto Vallarta’s calendar is always brimming over with events and shows which range from food festivals to fund raisers, sports to festivals. So it doesn’t come as a surprise to know that expats in Puerto Vallarta love the town so much.
Tunisia’s emerging real estate opportunities are quietly making an impact, as growing numbers of buyers begin to discover the attractions of this truly unique market. Having been relatively overlooked in the few years the market has been open t
Puerto Vallarta real estate industry is booming because of the many attractions and beautiful beaches in this lovely resort community. While the Puerto Vallarta Real Estate market is wonderful for vacationers and buyers, it is also a great way for pr
Most people find it difficult to buy their home as they are not in a financial condition to afford it. If you are looking for a new home and if you don’t have enough money to make your purchase then you can apply for a home mortgage loan with which y
For those who see themselves as a novice in real estate, the idea of taking that first step into real estate investment can be an extremely confusing and daunting time. Many of those who look to join this field may have found the perfect investment t
We are in a bear market. There, I said it! So often we hear that the very key to a successful property investment strategy is to stick to the basics. Never has this been a more potent cure to the economic disease that investors have to fight off i
Syndication
tweet
PDF version
Printable version
Publisher HTML version
Discussions (0)
Email Article
Post New Comment