go go Conveyancing’s guest speaker of the week is Heidi Alexandra Pollard, CEO UQ Power www.UQPower.com.au
The world, our lives and the way we work, play and communicate has changed dramatically over the past few decades. And while the way we live and the things we do have changed, the principles of wealth creation have remained the same.
Over 200 years ago when the first settlers came to Australia it was those first settlers who claimed their parcel of land and built a farm or a workshop who created wealth. The swagmen who wandered the land with their swag on their back looking for work became dependant on the settlers for work, board and food. One hundred years later it was those who could afford to build and run a factory who created wealth while the workers moved from factory to factory earning a minimum wage.
Today, the conditions of living and prosperity for the majority of Australians has improved dramatically, yet the wealthiest in the country are still the landholders and business owners. As Money Market magazine says: “Ninety-seven percent of all millionaires have achieved their financial independence through real estate investing.”
Modern day swagmen are employees, workers and professionals – moving from job to job, dependent on the business owner for their wages to pay for their food and living expenses and on their landlord for their accommodation needs. While they may not be walking the land with a swag on their back they are still wandering from one career opportunity to the next, living pay cheque to pay cheque. They are just as dependent as the swagman of yesteryear.
In a world of constant change, challenge and chaos, is it any wonder so many of us crave certainty. Sadly most people today are suffering from financial stress due to a lack of certainty – uncertainty about their job, their prospects, their future ability to feed and clothe their family.
Despite having some of their highest salaries on record, many are still suffering from a financial crisis. Why? Because it’s not how much you earn but how you spend and invest that determines your wealth and whether you can retire young, retire rich.
My personal property power journey began two decades ago when I first read Robert Kiyosaki’s book Rich Dad, Poor Dad. The book really resonated with me and made me look at the path I was already heading down which was to go to school, get good grades to get into university, then get a good job with a high salary.
It was an exercise from the book that I did that made me realise my high salary was like golden handcuffs keeping me trapped. My ah ha moment was that if I lost my job tomorrow, the length of time I could survive for before I ran out of money back then was only 4 weeks. This insight started me down a path of gathering all the information, knowledge and know-how I could to support me to become financially literate enough to manage and create certainty for my own future wealth. From that moment I saw that retirement was a function of money, not age.
In the beginning I started investing as a hobby while I was in my day job and I read every book, attended every seminar and asked a lot of people loads of questions. With clarity, insight and focus I invested with confidence buying on average 1 to 2 properties every year from then on. My goal was to replace my income so that I could quit my day job and start my own business. By age 34 I had achieved this goal and made the transition smoothly, without financial concerns.
Statistics show that on average Australian property doubles in value every 7-10 years and yet less than seven out of every 10 Australian’s are property investors and that seven out of every 10 property investors stop at one property only!
People started asking me about what I was doing with property and I found through these discussions that when it came to investing, most people are too scared to make a decision, so they either invest nothing, or they put their money in the hands of someone else. What I found was it was mindset, not money that held people back from investing in property. If this is you then just imagine for a moment if your grandparents had purchased waterfront or city property in Sydney 80 years ago and held onto it. Would you be happy about that?
Here’s my 5 D’s to creating a successful mindset:
- DECISION – make the decision to become an investor, define your strategy
- DESIRE – know your big why – why do you want to invest in the first place?
- DEFINE – define your comfort zone – what level of risk are you comfortable with?
- DEAL – learn to create great deals – successful investors are great deal makers
- DURATION – be prepared for the long term, have patience – property is generally not a get rich quick investment option.
Lastly it is important to build a smart, creative, big thinking team around you. Risk = Lack of Knowledge and therefore you have to have great advisors and partners who will question you, provide you with insight, information and advice throughout your property journey. Finding good real estate agents, lawyers, conveyancers, building contractors and valuers will support you in minimising risk and maximising your return on investment. Find yourself an accountability buddy or property mentor to coach, guide and push you. Paying for their support will also ensure you follow through and make things happen.
Have fun, the more you do, the better you get – happy investing!
Thanks Heidi for sharing your story and tips with our readers. We agree it is really important to have a good team around you when you start on the property investment journey. go go Conveyancing can help any investors looking to purchase, or sell, property in New South Wales.
Make it easy, make it go go!