When it comes to investing, 95% of people lose money, whereas only 5% of people make money through reasonable gains. These 5% are positive, and they look for bargains when others see doom and gloom. They analyse the facts, rather than the headlines. They look past the frenzy of the “herd mentality” to identify the real opportunities.
As 2016 sets sail, let’s look for the opportunities that have already had their seeds sewn in the gloomy period.
Winning and Losing with Fixed Rates
Back in 2009 the RBA was wrong in raising rates. We spotted this, knowing they would soon have to lower rates. We won!! Property Club members who acted on this insight didn't fall for the banks advertising trick, asking us to fix at a higher rate. We had fixed long before the RBA started raising rates, locking in at 5.2% which then came off fixed in 2012.
I believe this banking monopoly rate hike will be shortlived and that it is not yet time to fix. The reverse, the high rates, in fact could be their undoing!
Winning and Losing with Property Supply
In 2009 the RBA stubbornly stuck to their high rate policy for two years before finally seeing the error of their ways and reversing them down substantially by 2.25%. APRA is more accountable and our government is hopefully more alert now. So I think that APRA's folly will be reversed within 12 months, not the RBA's protracted two years. So where is the opportunity? The supply of housing is starting to dry up I believe we will see property prices jump across Australia as a direct result of APRA's bungle. Perhaps they will be the cause of a property boom. If you know my bananas story about supply and demand, you’ll know that a price boom is highly likely. Where are the wisest places to buy? Where will there be under supply in the markets across Australia?
Winning and Losing with Property Choice
Property Club has Researchers right across Australia feeding us with information on the supply versus demand for all capital city markets. This information gets fed back through our weekly "star rating" meetings where we evaluate the markets and the properties that are available. Your Property Mentor is therefore right up to the minute tapping into these markets to recognise great property in optimised locations.
So, are you set for a successful 2016? Are you going to be part of the top 5% who see opportunities and win? Or will you follow the herd and be part of the 95% who unfortunately will end up on the pension? We are proud to stand on our track record "that we create more millionaires than all the others combined!". This claim has been thoroughly tested by authorities and certainly not contested by any other company. Interesting, as you can see from the above this is not a simple, safe process that stops with the share market performance. We hope though, that through your membership of Property Club we give you heaps of facts and figures so you are fully informed to make the best decision possible.
I will be around the States in January and look forward to seeing you and giving you more specific advice. I was alone in the world in 2005 in predicting an American financial meltdown (there was no GFC!!). At the same conference I was videoed saying that 3.5 years later there would be a share market meltdown in Australia. What will I be telling you this years conference? I look forward at seeing you at our upcoming events. My aim is to help 90,000 people to not live on the pension for the rest of their lives. I want to help others avoid the pension and live a wealthy, independent, millionaire's lifestyle.
We create more millionaires than all the rest combined? You betcha! What a great time to plan your future. 2016 is unfolding.
Kevin Young