Home of the Brave: Find a safe place to grow your money

Does being brave and making money go hand in hand? World leaders in finance and investments are often said to show courage (or “greed” in Warren Buffet’s case!) when others show fear.

Put simply, this approach to property investment really means to capitalise on opportunities to make money, even at a time that looks different or scary. A bit like now.

Doing the opposite of what everyone else is doing can be a smart path, if you plot your course. And while we don’t have Buffet’s US$78.9 billion net worth, or his reputation as one of the world’s smartest investors, that doesn’t mean we can’t share his approach.

As in 2007/8 when the Global Financial Crisis (GFC) threw us into a recession like which we’d never experienced, and the housing market declined, COVID-19 has scared many people away from spending. This is despite the fact that interest-rates are at a record low, and banks are happy to lend.

If we look back at the GFC now we can see that it would have been an ideal time to buy. Prices dropped, interest and cash rates were low and a lot of people were selling property at a fraction of its worth.

But, while I agree with Buffet and think we should all get our big boy and girl pants on and be brave, courage is not simply a feeling. 

To gain courage we need knowledge, expertise, strategy and a plan to execute. We need a game-plan that will give us the confidence to find a safe home for our money and help us to grow wealth.

So, how can we learn how to be brave – in the right way – when it comes to real estate investment? Here’s a meaning for brave you might not have heard before: 

B IS FOR BOOTING THE BANK –

With the big four banks offering super low-interest rates (good for you), they’re also dropping their deposit rates (bad for you). Yet another reason to stop relying on savings for your future wealth and invest in property. But don’t forget your buffer (that’s another B!) and maybe leave a little behind in the bank for a rainy day. 

R IS FOR READING THE MARKET –

We all know that the money we put into our Superfund doesn’t just sit there gathering dust. It gets invested by teams of (we hope!) super smart investors who know the economy back to front and can better predict where our savings will yield the most return. Well, right now, here and in Europe, Superfunds are investing in residential real estate. And if it’s good for them, it’s good for you. 

A IS FOR ASKING QUESTIONS –

COVID-19 and a global, economic crisis aside, real estate markets are a fluid, ever-changing entity and what we know to be true one day, can be false the next. This is why you need to know what you don’t know and surround yourself with people who can answer any questions you have. Connecting with people who are experienced and educated in real estate investment will allow you to keep a better eye on what’s happening and potentially capitalise on change. 

V IS FOR VENTURING OUT OF YOUR COMFORT ZONE –

We’re not talking about going Bungee Jumping here. We’re suggesting that the bank was once a safe-haven for your money to grow, and now it isn’t. Seeking other places in which to invest your savings might mean doing something new, such as buying an investment property. But with change comes growth – and if you want to grow your wealth, you may need to change how you look after it. 

E IS FOR ENTERING THE LONG GAME –

I’ve said it before, but property investment is a marathon, not a sprint. But so was putting your money in a savings account. You don’t deposit a few dollars one day and 12 months later have a million bucks in the bank. It takes time, and so does the value growth in property. Committing to letting your property value increase over time, before you’ve even made a purchase, will put you in the right frame of mind to be a successful investor from the start.

BEING BRAVE

Good property investors are nimble and adapt fast. They stay informed and enrol a team of experts to help them excel in times where others can’t. To find out how you can be one of those people, we’re running a free a property investing seminar. 

Here you’ll be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you. 

Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities.

Spaces are limited. Book here. 

Sam Saggers

Co Founder Positive Real Estate