The Chinese have historically been a very wise (and patient) people, building their civilization to its current arguable status as a formidable, global economic powerhouse over centuries.
And let’s not forget the swathes of Chinese investors increasingly recognising the incredible opportunity currently presented by Australian residential property.
I feel we could learn much from our Asian neighbours about economic evolution, starting with these 10 ancient proverbs that can be successfully applied to your own property investment journey…
(Before the emails start…I hereby acknowledge that what follows are some rather loose translations of proverbs, which may or may not have their original foundations in the Chinese culture, and were probably never actually spoken in the literal sense by Confucius. But words to live by nonetheless!)
1. There is nothing like trying.
A nice simple one to kick us off, but so very true when it comes to property investment. This could also translate to “He who procrastinates the longest finishes the retirement race last.”
Time is of the essence to any investment success, as it’s time – one crucial element in the dichotomy of compounding (with the other being capital) – that determines whether you can retire with sufficient wealth at a point of your choosing (ie. complete financial independence), as opposed to working your life away.
2. When one door closes, another opens.
A considerable amount of property market commentary has focused on an apparent rapid acceleration in house prices of late, particularly across investment grade, inner urban Sydney and Melbourne postcodes.
I wonder, as investors are increasingly bombarded with fear inciting headlines, how much of the activity we’re currently seeing is borne from a well-conceived investment plan, as opposed to a knee jerk reaction to what’s clearly being painted as a very bullish housing market?
The very human fear of ‘missing out’ always seems to accompany the perception of a rapidly rising market. But the fact is, there’ll always be another opportunity. Don’t waste time struggling to push against doors never meant for you. Focus on the open ones you’re walking towards today.
3. Opportunity knocks only once.
Okay, at first glance this seems a complete contradiction to the above point. But in fact, it just cements the notion that if you’re too busy ‘barking up the wrong tree’, you could miss out on the opportunity presenting itself in some other guise.
Listen for the sound of those knuckles rapping and when you hear it, consider whether this is a door you’d benefit from opening, then act accordingly. Linger too long though and opportunity will find another door to knock at.
4. Don’t postpone ‘til tomorrow what you can do today.
‘Procrastination’ is to ‘opportunity’ what ‘The Joker’ is to ‘Batman’ – a complete thorn in the lycra suited side. Not sure why the superhero metaphor has come into play, but the fact is if you fail to plan, you plan to fail. Moreover, if you fail to act on your plans, you’ll never even know if success was an option.
5. Every why has its wherefore.
Although you might not like the prospect of evaluating your investment journey and uncovering mistakes made along the way, only when you acknowledge and understand where you may have taken a wrong turn will you be able to rectify it.
For investors, the capacity to objectively assess the performance of your assets can mean all the difference in realising future financial success, as opposed to failing with your first acquisition.
6. Better hold with the hound than run with the hare.
Of course the fate of the hare isn’t that appealing, so you can understand the thinking behind this little gem.
For property investors though, the message is that your strategy must account for the fact that real estate is not really a speculative type of asset, given its relative illiquidity. Hence, a long-term approach will yield optimal results, whereas chasing quick profits on the back of the latest fad could land you in Failtown…population – You!
7. Everything in its season.
While the current real estate climate might have you chomping at the bit to get out there and acquire further wealth creating property assets, the question remains – is it the right time for you to be actively building your portfolio?
Again, this point resonates with the need for investors to identify their goals and then the subsequent roadmap as to how you intend to reach them, hopefully unscathed.
If the timing isn’t right for you, then now is not the right time.
8. One bitten by a snake for a snap dreads a rope for a decade.
This rather cryptic proverb essentially translates to ‘once bitten twice shy’. It’s common for beginning investors to make a costly error in judgment that scares them away from property forever. But if you make a mistake and run from it, what hope do you have of learning a valuable lesson that may serve you well in the future?
9. Measure thrice, cut once.
This is a great one for all those who like to create equity through property refurbishments! Just kidding…although you should always follow this advice when undertaking a bit of weekend DIY.
This comes down to planning for property investors. Rather than race into your next acquisition with all guns blazing – especially in the hotly contested Sydney city auction market – make sure you’ve joined all the financial dots and can come up with a picture that makes perfect dollars and sense!
10. A single slip may cause lasting sorrow.
Just ask the many investors who’ve ended up losing their entire asset base due to poorly structured, cross-securitised finance portfolios.
Don’t be sad about the state of your financial affairs. And don’t put off a portfolio review if you feel it’s time to appraise your investment progress.
The Trilogy team can help to objectively evaluate your asset base and work out ways to optimise your cashflow position. Click here to connect with investment experts who will ‘teach you how to fish so you can feed yourself for a lifetime’. Metaphorically speaking!
About the Author
Since 2008, David Thomas has built a business aimed at servicing the needs of property investors, owner occupiers and small business owners. David is recognised as one of the top 10 independent mortgage brokerages in the country, David and his team have settled almost billions of dollars worth of residential and investment loans over the last decade.
Known for his straightforward, relatable style, David believes by educating people about property funding; they fare better in the market. By sharing his expertise openly, some of the people he educates will likely become his clients. It's a win-win approach.
David Thomas is a credit representative (Representative Number 506153) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237).