When I hear people quote Henry Ford's famous line, I often wonder if they actually understand the extent to which it reaches into our lives. As we all know, there's a big difference in the outcome of "Hoping" something will happen and "Deciding" it will. Hope places the chance of your outcome in the lap of the Gods, Decision allows you to do something about it. Yet, like an IPO, I see investors go head first into a new OTP offering in a new development or new estate across the country somewhere, blinded by the gloss of that brochure showing those figures that you just can't lose on but the same figures that rely on the "Hope" gods to deliver, then 2-3 years down the track, blame "The Market" when their capital isn't returned for them to keep investing.
It cops the blame for a lot doesn't it? It seems to be the only reason why investors lose money these days, it holds people back from investing, it seems to have different effects on different people at the same time and when the market is apparently "Good" there's always that dreaded and always just around the corner "Bubble". Whoever created the concept of the bubble needs to turn to toy manufacturing as it's the only one I have seen in the last 16 years!
Businesses have loans and they have expenses (just like property) don't they? The rates are far higher, LVRs far lower, expenses far less predictable yet, ask a successful business owner if they have ever failed and they will say "Yes", ask them why, you will never hear "The Market". Why? because they "Decide" they will do what it takes to make sure they make money. They don't buy a brand new business that is firing on all cylinders, let the staff run it and hope that it will make them money in 2-3 years time, they look for opportunities, see where they can get the best ROI, put a plan in place and implement it. They create their outcomes.
It's a lot of money to give to a market based on a glossy brochure or glossy white teeth from the salesperson....even if Uncle Bob has done well. I'm not saying that markets don't help, they absolutely do, but if you hear about it from someone, it's too late!
Guys and Girls, look for profitable opportunities, work out exactly how to get the profits (to the cent) get the right team on board and you cannot lose. There is no reason why you can't create 20% profits in a bust market, just keep your focus on the outcome, not the property.
If you want to learn how to market proof your property’s returns, click here