August 15, 2013 by Dymphna 11 Comments

Know Your Market BEFORE You Buy!

Country Town

I guess I shouldn’t be too surprised by the attendance levels I’m seeing at every event…

Certainly I expect strong attendance in the capital cities, but even in the smaller cities, I’m seeing every room full, every chair filled.

It makes me quite proud to be able to speak to so many of you on how you can set yourself free and achieve financial independence.

But it is also a quite humbling experience as well. You see, even though speaking to packed rooms every day is gratifying, it’s also a privilege. And I don’t take that privilege lightly.

I fully realize that when you attend an Seminar, it will be a life-changing experience for you. It’s literally the beginning of a new life and I know that it’s exciting for you, but you know what? It’s also exciting for me!

Seeing the light…bulb

Sometimes it happens right then and there. The light bulb pops on in your mind and you see it. You see the way through your current situation to a better one.

When you attend an Seminar, you see and learn the concepts, processes and techniques that I walk you through. It’s at that point that you understand just what is truly possible in a very short period of time.

Pulling the pin on your job, for instance, is no longer a dream, but a reality. Many have done so in the past year and many more will do so this year and in the years to come. Best of all, you know just what to do to make it happen!

When we chat at the end of the day, I can see that light has been switched on and I know that you’re going to be successful.

I’ve met so many of you that have done just that and in record time! As I say, it’s not a race to success. It really isn’t. You’re not competing with anyone else. But at the same time, it’s a process that works on your own schedule, according to what you can do in your own situation.

But sometimes, it takes just a little longer for that light bulb to switch on. Sometimes I see familiar faces that I saw maybe three, four or even six months ago. And that’s perfectly fine. Heck, it took me six months to get my nerve up to do my first deal!

Know your own market

One thing that I’ve noticed in the questions you’ve asked me on this tour is that one in particular comes up over and over again. This question concerns the state of the property market in the particular city where the event is being held that day.

The question is asked in various ways, but it still comes down to either affordability issues or concerns about the actual health of a particular local or regional market. 

For example, I’m asked what the housing market will be next year in this or that city. Or, it might be which mining regions are the most favorable or where the best rental markets are, and so forth.

They’re all very important questions, of course, but the answers will differ for each one, won’t they? Different places have different dynamics affecting their individual market conditions. But there is actually a much better way to address your individual market concerns.

If you live, say in a big city like Sydney or Melbourne, the housing and rental markets will differ than if you live in smaller city or town. Each will have different opportunities and challenges, won’t they? But let’s set that aside for the moment.

Your real estate market is where you can afford to buy!

 The more important question you must ask yourself is, “Where is my market?”

The answer to that question is a simple one: YOUR REAL ESTATE MARKET IS WHERE YOU CAN AFFORD TO INVEST!!!

Now, what does this really mean?

Let’s take a look at a young couple that I recently spoke with at one of my events. Both of them work, they have one child on the way, and they rent a two bedroom flat in Melbourne. By the time they’ve paid for all their monthly expenses, they’ve got a little bit left, which they put in their savings.

Given this information, is Melbourne really their market for investment?  The answer is “No, it isn’t.” That’s the point I want to make today. Just because you live in one place doesn’t mean you have to invest there.

Go to where the opportunity is!

In fact, I know plenty of members who have devoted their weekends to driving a couple hundred miles to find investment property that suits their budgets. You probably know some of them too, or have heard of them, at least.

Does that mean that there’s no opportunity for these investors in Melbourne?

Not necessarily. They can get a JV deal with a seller if they can negotiate one. They can earn sweat equity by doing the reno or other rehab work on a property. They can also go in with other investors to buy a Melbourne property.

But if they just want to put a little money down on a property, fix it up to re-sell or earn solid passive income from it, then their best opportunities are where prices are lower, aren’t they?

That’s what you, as a real estate investor, need to think about. Be honest with yourself. You need to IDENTIFY YOUR TRUE MARKET, WHERE YOUR GREATEST OPPORTUNITY IS!

Getting where you want to go…

Your true market may be where you live. Or, it might be a little ways—or even a long ways– down the road from where you are. If it is, then so be it! There’s nothing stopping you

Just understand that you’re putting your weekends toward a larger goal that will pay off. Or, if your best opportunity is quite a bit away, there’s always the option of moving there…

It should help you to know that some of my most successful students, knowing that where they lived wasn’t actually their investment market, did something about it.  They did their due diligence to find the best areas for their investment strategies, and then packed their bags and moved there!

They knew they were not moving to a different town for no reason; they were moving there for a purpose. They followed their best opportunities to achieve their goals.

Within a year or two, they’re all well into the six-figure passive income zone…and can live wherever they please.

Now, when you think about it, isn’t that where you want to be?