Property expert or wealth creator. Which would you rather be?
Over the 7 years since I met Ian Hosking Richards at a property seminar, I have built my portfolio using an easy set and forget strategy. I am now in the position of looking forward to a retirement that can provide me with a passive income for future security. Prior to entering the property market my future retirement did not look so rosy. I had no investment assets or retirement plan and I had just been made redundant in a 20 year career. Thank goodness I fell into property by meeting Ian.
I think there are many other people like me, working hard and yet looking for a way to retire early or grow a passive income through property. So what is the best way to achieve this goal – is it to focus on becoming a property expert first through education or to focus on growing wealth by having goals and taking action first?
Becoming a property expert through education first
Judging from the plethora of property education and seminar programmes that have been advertised in property magazines over the last couple of years, it may seem that paying thousands of dollars for property education is a guaranteed way to fast track your path to success. Is this money well spent? You may be paying for information that you do not need to get started into property.
I suggest asking what the education programmes will teach you. You may be getting an armchair education to become a property expert at a very high cost. Knowing how to read market trends and reports, suburb statistics, best rent reports and economic reports may enable you to be an expert at research and you may feel like an expert on property. However buying a property and growing a portfolio for future wealth requires taking action. With courses costing from $7000 to $15,000 upwards this money could be used towards a deposit that will get you into the market and on your way to growing your portfolio. So you could be stuck at square one and minus a sizeable amount of money.
Many potential investors may stall their ability to start investing by paying for education that they may not need or have the time for. Investors sign up for a programme because they do not have the time to do the research for themselves. However the programme may inundate them with too much information which they still do not have time for or the experience to interpret. It can lead to confusion and chronic procrastination. And there are many courses out there for the person who “loves” to learn. This is like being in an investment club rather than helping you get closer to your goals.
Wealth creation requires the right mindset and taking action
So what is the key to growing wealth through property? In my years of growing a portfolio and being a property advisor I have learnt a lot from being around successful investors. They knew what they wanted, had strong goals, set a plan and took action and bought property and started their portfolio. They did not get stuck in the detail, procrastinate or spend money on expensive courses to achieve their success.
Mentoring programmes are advocated as an ideal way for inexperienced investors to be guided through the process of growing wealth through property. A mentor needs to have achieved what you want to achieve and be passionate about helping you achieve your goals. They are there to answer your questions, offer enough education until you are ready to make an informed decision and guide you towards taking action and follow up with you throughout the process.
However mentoring programmes in property also seem to come with a high price tag of $7000 -$10,000. Sometimes the mentoring is offered for life, and may seem very attractive. However if the company is also selling you a property and receiving commissions for the sale, then you may be paying twice! Look for someone who does not charge joining fees or mentoring fees. It may not only get your property career on track sooner, but may teach you that wealth creation is more about your mindset and your ability to take action, not how much you paid for a course or a mentoring programme.
Lindy Lear is a successful property investor who had a late start into investing, yet has grown her portfolio to eight properties in three years. She is a qualified property advisor and general manager of Rocket Property Group, and she won the Reader’s Choice Award in 2009, 2012 & 2013 for Property Investment Advisor of the Year. Lindy is passionate about helping others realise their goals through investing in property, and can be contacted on 1300 850 038 or visit www.rocketpropertygroup.com.au
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.