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Date Posted: Tuesday, December 14, 05:52:21pm
Author: The path to property investment success
Subject: Columnist Chris Grayposted on Dec 14 01:59pm Harry Potter November 18th==world philosophy Day Yahoo 15/12/2010==Wednesday
In reply to: path to porperty success Wednesday 15/12/2010==Chris Gray-Yahoo 's message, "" on Tuesday, December 14, 05:49:50pm

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Personal Finance > Columnists > Chris Gray > Archive > The path to property investment success

Columnist Chris Gray
The path to property investment success
by Chris Gray
posted on Dec 14 01:59pm
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Chris GrayWith the right strategies, property investment will provide you with long term rewards and the freedom to focus on a job you love or raising a family, all the while knowing you are backed by a bricks-and-mortar asset that is building your wealth. Having great success in property investment is possible, but like any worthwhile pursuit, the process is long and studded with both threats. To be successful on your journey, it is necessary to make a mental shift that could take many years.

Over time, and with the right strategies, property investment will start to provide you with long term rewards and the freedom to focus on a job you love, take time off to travel or raise a family, all the while knowing you are backed by a bricks-and-mortar asset that is constantly working at building your wealth.

I started investing in property when I was 22 but it wasn't until I reached my thirties that I began to see how I could transform my life by investing in property.

I have learned a lot of lessons on my property investment journey. I believe the following five lessons are the most important points for anyone looking to succeed in the property market to consider:

1. 'Don't fear the gear'

This is one of my mantras. Most people are afraid of debt and leverage, as they perceive it as dangerous. However, debt can increase your return and shorten the time it takes to get the return. Debt does increase your risk during a downturn, so every investor needs to do know how much debt they are comfortable carrying.

2. Go against the grain

Ninety-five per cent of the population retires poor. If your goal is to retire wealthy then you need to do the opposite of what everyone else is doing. Good investors buy when everyone else sells and sell when everyone else is buying. Yes, it can be difficult to maintain your confidence when everyone tells you you're doing the wrong thing at the wrong time, so you need to develop your mind to block negative comments which can come from friends, relatives and the media.

3. Stick to your strategy

Every investor should have their own strategy that reflects their circumstances and adversity to risk. Figure out what works for you and, once you've found your strategy, stick with it. You do need to be aware of other opportunities and get other advice, but often these can be distractions. A good strategy shouldn't be overly complicated - it's often the simple things that work.

4. It's time in the market, not timing the market that counts

The real secret to wealth is compounding your investments. You need to change your mindset from trying to be a millionaire overnight to aiming for consistency. This can be very frustrating when you first start out as your wealth won't increase much. But once you've got the critical mass of properties, your wealth will grow.

5. Don't retire on property rents

Most people think you've got to pay property off as quickly as possible and then retire on rents. But often it's the capital growth that makes the real money. Change your mindset and be less emotional about it - look at the numbers and make your decisions based on that.

Chris Gray is a leading property expert who hosts "Your Money Your Call" on Sky Business News. Chris regularly comments on the market in major media. As CEO of Empire Chris helps time poor professionals build property portfolios of their own – searching, negotiating and renovating on their behalf. For more information, go to www.yourempire.com.au or www.chrisgray.com.au.

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10 Comments Report Abuse
1. mihansard - Dec 15 09:01am
GO TO TRENDSRESEARCH TO SEE WHAT'S COMING.2. rob_was_here - Dec 15 09:17am
ok. i'll follow your advice (sort of) - you are now suggesting that property is a fantastic investment, so i'll not follow the 95% of sheep and won't buy property now because the market is overheated. I'll wait until the shyte hits the fan, then buy when the 95% are selling. i can't believe there are still people pushing the property bandwagon in this scary environment!3. annmbruce - Dec 15 09:21am
God advice Chris but we listened to expert advice and our money went up in smoke - still get the optimistic glossy brochures - just no dividends! However, our investment properties, just chug away and give us our only retirement income - maybe not as much as the managed funds promised but at least it's there every month.4. vastafranco - Dec 15 09:37am
Chris your article is a shameeee. Are you happy to live in a world where 95% of the population is poor just because they choose the humble way of honest and moderate living?
Thats why we have so many problems in our crook and speculative "society", because of that 5% greedy and immoral individuals.5. lamabac - Dec 15 09:39am
Only truth if you have the extra money. the problem is lots of people are still struggling to save for the initial deposit. Don't agree with point 5 though. I would rather "pay property off as quickly as possible, buy more properties and then retire on rents".6. jasmin101827 - Dec 15 10:30am
yes I agree totally, thats exactly what you have to do. And its never too late to start. I am 52 and have recently bought my first investment property, and I am not scared of debt.7. alisont@y7mail.com - Dec 15 10:40am
vastafranco

the kyle sandilands and john ibrahim types haha ?8. nopejo2 - Dec 15 11:01am
Good advice that has gone over the heads of some it seems. There are genuine bargains in the high end of the Gold Coast property market at the moment for cashed up investors.
As everyone knows property in the USA is also a good long term investment. Do your research, check the title deeds, buy in areas of good employment prospects near transport hubs and links.9. victor_bavaro - Dec 15 11:04am
Great article Chris, and one point more to make. You don't need extremely high incomes to get started. We bought in 2007 & 2008 when interest rates were over 9% (and upward risk low) when no one would touch property. I would attend auctions where I was the only person bidding (sometimes there would be one other registered bidder). Once we saw that more bidders were attending (after interest rates started to drop) we stopped buying. We got some great bargin. Don't follow the crowd, do your own re10. ac4144498 - Dec 15 11:10am
i have invested in property for the past 40yrs.....yes it is a good investment....i have allway bought cheaper houses....renovated them and then sold them a couple of years latter....i am well ahead of myself....better than sharesPrevious Page | 1 of 1 Pages | Next PageLeave your comments
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