This week, I picked up a book titled ‘This is Marketing’ by Seth Godin who is a very influential figure in the world of marketing. I finished reading.. well. listening to the book twice already and I was blown away by how much useful information, strategies, and tactics discussed in this book.
I highly recommended this book to everyone whether you are running your business or an employee. Whether you like it or not, we are doing marketing and selling every day..
So why did I bring this book up? I read a story in this book. Harvard Marketing professor Theodore Levitt once famously said that people don’t want to buy a quarter inch drill bit, they want a quarter inch hole. The lesson is that the drill bit is merely a feature, a means to an end for what people truly want is the hole that the drill bit makes, but that doesn’t go nearly far enough, no one wants a hole. what people want is the shelf that will go on the wall once they drill the hole.
Actually, what they want is how they will feel once they see how uncluttered everything is when they put their stuff on the shelf that went on the wall. They want the satisfaction that they did it themselves and or perhaps the increased status they will get when their spouse admires the work or the piece of mind that comes from knowing the bedroom isn’t a mess and it feels safe and clean. So people don’t want to buy a quarter inch drill bit, they want to feel safe and respected.
So after reading this a number of times, I was thinking about the purpose of property investment. do people really want to have a property portfolio? the passive income, financial security, and early retirement? They all sound good and are what’s been preached to the public so everyone talks about them when it comes to property. if you ask 10 people what they want from investing in real estate.. they want those things.. lots of properties, lots of passive income and quote-unquote financial security.. or is it?
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One of the listeners asked the following question.
“My partner and I are on target to save up for a deposit in Q4 2020. We want to own a home but also think long term. If we do not find a suitable area/land/house, should we consider an investment property while renting?”
So reading this question brings back the memory.. when I was contemplating buying my first home in 2007, and honestly I didn’t have the knowledge or vision to even think long term, I was just sick of renting and felt that I had to buy a house as I was just married and felt the need for a stable home and it turned out be a good decision looking back.
Having said that, my decision-making process was very straightforward and I certainly didn’t consider any other options that would’ve been available to me. I wasn’t thinking about investing at all. Had I known what I know now, I’d have definitely considered more options and maybe my path to building wealth would’ve been slightly different, in a positive way.
So I thought this would be a good topic for the show… What should you do? when you start out, do you buy/rent or rentvesting? which means renting while investing. My thought on that is you can start investing no matter what option you choose.
If you want to ask me anything, you can submit your questions via www.elmerliu.com.au/askelmer and I will cover them in the show.
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In this episode, I share my backstory of how I bought my first property and how I got into property investment.
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I have noticed, over the years of my property investment journey, people who have ‘made’ it share a similar set of good habits.
You might have read the book ‘The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change‘ and similarly, there are simple changes, according to this article, we could make starting today to make our life better and more efficient.
Those simple steps, In summary, are as follows:
1) Turn off your phone
This isn’t easy, we are living in this modern era where the phone is EVERYTHING to us. For some people, they couldn’t even picture what their life would be without the phone for even 5 minutes. While it is a great tool for us, our phone is also a huge distraction to us. I tried to at least put the phone on airplane mode while I am in bed and try to stop checking my phone 30 mins prior to going to bed. It hasn’t been easy, but we all start somewhere.
2) Stop the brain drains
Simply put, stay away from the negativity. Don’t hang out with the people who complain about life all day. Surround yourself with positive people and remember you are the average of the 5 people you hang out with. So be selective who your peers are.
3) Stop trying to be perfect
This is my favorite and I was guilty of it as well before. I would often ideas, however, take no actions because I thought I had to have EVERYTHING lined up, ready to go before I start. I have learned, through my years of property investing, sometimes all you need to do is to make the leap, take baby steps and move toward your goal(s).
The question is, how do you know whether whatever your idea would work or not if you never take the action?
4) Say No more often
Learning to say ‘No’ is a good measurement of how your prioritization skill is. If you say ‘Yes’ to everything, you will end up achieving nothing as it’s impossible to please everyone by doing everything. You will disappoint someone and more importantly, let yourself down if you keep saying ‘yes’ to everything.
Read this book, it will help you tremendously in learning how to say ‘No’ more often.
5) Change your thoughts
Your mindset can be changed. It can be changed, it can be changed, it can be changed. That’s right, say it out loud 3 times. Whatever your mindset is now is based on your past experiences, your life stories so far.
It’s not YOU, it’s not who you are.
How to change your mindset/thoughts for better? Just start believing that you can achieve whatever goal(s) you set for yourself, picture them in your head and they WILL become reality.
People have been asking lots of questions given the recent property market slow down and I came across this article, which I
think may help to clarify a few things for you if you are looking to purchase a property soon or considering it.
If you don’t want to read the whole article, here is the summary.
Q: What’s happening to property values around Australia?
We’re experiencing a relatively mild downturn considering that nationally house prices are still 31% higher than they were five years ago.
Q: Are house prices likely to fall further, and if so, how long will this weakness last?
While the value of some properties may fall a further 5% in some locations, home values are holding their own and even increasing, in other areas. In other words, our two big property markets are exhibiting a soft landing.
Q: If I’m looking to get into property should I buy now or wait for prices to drop further?
Don’t try and time the market.
The fundamentals of strong population growth, a robust economy with excellent jobs creation and state government infrastructure spending will underpin a property market.
Q: Which segments of the property market are likely to suffer the most in a buyer’s market?
- About 10% of all properties sold sell at a gross loss for their owners;
- Apartments were more likely to sell at a loss than houses, which is most likely due to the high premium many investors paid for their new unit;
- In the last quarter, Melbourne units were 10 times more likely to re-sell at a loss than houses, which was much the same in Brisbane (9 times) and Canberra (8 times) but dissimilar from Sydney and Hobart where a greater proportion of units re-sold for a profit than houses; and
- More regional properties sell at a loss than those in our capital cities.
Q: Do you have any other tips for buying well in a buyer’s market?
1. Firstly, don’t try and be smart and time the market — even the experts can’t time the market.
2. Now more than ever it is important to get a good team around you.
3. Don’t be scared to buy at auction — there is generally less competition nowadays.
4. Be prepared to buy before the auction.