A New Way to Invest in Property

A New Way to Invest in Property

Which investment should I buy?
Is now the right time to buy?
Most people want to know how to spot the right investment at the right time because they believe it is the key to successful investing. Let me tell you this is far from the truth: Even if you get the answers to these questions right, you only have a 50% chance of making your investment successful. Let me explain.

A New Way to Invest in Property
A New Way to Invest in Property

There are two important factors that can lead to the success or failure of any investment:

External factors: These are the markets and investment performance in general. E.g:
The possible performance of the investment in question over time;
This is whether the market will go up and when it will change from one direction to the other.
Internal factors: These are the investor’s own preference, experience and capacity. E.g:
With which investment you have more affinity and have a good history of making money;
How much capacity do you have to hold on to an investment in bad times;
What tax benefits do you have that can help you manage your cash flow;
What level of risk can you tolerate without being tempted to make panicked decisions?
When we look at any investment, we can’t just look at charts or research reports to decide what to invest in and when to invest.

A New Way to Invest in Property

Let’s look at a few examples to illustrate my point of view here. They can show you why investment theories often don’t work in real life as they are an analysis of external factors, and investors can often make or break these theories themselves due to individual differences (i.e. internal factors).

Example 1: Choose the best investment at the time.

Most investment advisors I’ve seen assume that any investor can definitely make good money out of it if the investment performs well. In other words, external factors alone determine the return.

I beg to differ. For example, consider:

Have you heard of an example where two real estate investors bought the same properties next to each other on the same street at the same time? Good money is made in the rent with a good tenant and then sold at a good profit; the other’s rent is much lower with the bad tenant and then sells at a loss. They may both use the same property management agency, the same sales agent, the same bank for finance, and get the same advice from the same investment advisor.

A New Way to Invest in Property
A New Way to Invest in Property

You’ve also seen stock investors buying the same shares at the same time, one forced to sell at a loss due to personal circumstances, and the other selling for a profit at a better time.

I even saw that the same contractor built 5 identical houses for 5 investors side by side. One took 6 months longer to build than the other 4 and had to sell at the wrong time due to personal cash flow pressures, while others are much better off financially.
What is the only difference in the above cases? Investors themselves (i.e. internal factors).

A New Way to Invest in Property

Over the years, I have personally studied the financial standings of several thousand investors. When people ask me what investment they should invest in at any given moment, they expect me to compare stocks, properties, and other asset classes and advise them on how to allocate their money.

My answer to them is to always ask them to review their past performance first. I would ask them to list all the investments they have made so far: cash, stocks, options, futures, properties, property development, property renovation, etc. ‘T. Then I advise them to stick with the winners and cut the losers. In other words, I tell them to invest more in things that have made them good money in the past and stop investing in things that have never made them any money in the past (assuming the money will sit in the bank and get a 5% return per year). , they should at least pass this when comparing).

A New Way to Invest in Property

If you take the time to do this exercise yourself, you will very quickly discover your favorite investment to invest in, so you can focus on making the best returns rather than allocating your resources to the losers.

You might ask why I chose investments this way, rather than looking at diversification or portfolio management theories as others have done. I simply believe that the law of nature governs many things beyond our scientific understanding; and it is unwise to go against the law of nature.

For example, have you ever noticed that sardines are swimming together in the ocean? And similarly so are sharks. Similar trees grow together in a natural forest. This is the idea that similar things attract each other because they have affinity for each other.

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