No, it wasn’t Gandhi, Martin Luther King or Mother Teresa.

It was a guy called Kamahl. Famous for…

I forget… It’s irrelevant anyway.

But why am I telling you this?

Kony 2012.

I can’t believe how predictably ridiculous human psychology is.

Three brave men, filled with passion, heart and soul sacrificed their sanity, their time and their lives working to bring this one single cause to the attention of the world.

For seven years they did this without realising how successful it could ever be.

Their audacious goal was for 500,000 views.

Yesterday, the video ticked over 90 MILLION views.

Whilst they received accolades for their efforts, they’ve also received a ridiculous amount of criticism.

Why are people so unkind? It simply comes down to human nature… hard-wired inside of us to find fault and to bring others down.

You and I will never change it. But how you react to it will change what appears in your world.

There is an old Cherokee tale tells of a grandfather teaching life principles to his grandson.

The wise old Cherokee said, “Son, on the inside of every person the battle is raging between two wolves. One wolf is evil. It’s angry, jealous, unforgiving, proud, and lazy. The other wolf is good. It is filled with love, kindness, humility, and encouragement. These two wolves are constantly fighting.”

The little boy thought about it and said, “Grandfather, which wolf is going to win?”

The grandfather smiled and said, “Which ever one you feed.”

Nice story, huh?

My suggestion to you is to nourish the good wolf inside of you and starve the jealous, angry and envious world that battles to win your attention… and too often does.

To help you win, let me offer you these free and brilliant resources…
http://knowledgesource.com.au/pat

You know the one… The double dip recession that we were meant to have.

The end of America…. leading to the end Europe and the the euro zone.

Which would bring China down and lead to the end of prosperity as we know it here at home in Australia.

I’m still waiting… But as yet, nothing.

Have the doomsayers got it wrong? Have the press over cooked the fear mongering? Is the world in a far better place than even most economist realise?

Speaking of economists, 14 out of 15 of them punted on the RBA lowering rates yesterday. They were wrong.

Keep reading to find out why…

I’m not an economist, so I’m not really qualified to answer any of the above questions, but l invest my hard earned money and have done OK over the years.

So let me have a crack at what I believe is going on and why, if your serious about making money in 2012, you need to pay attention.

For the last 6-12 months we have been lead to believe that the Euro zone would create an almighty thud and bring western civilisation down with it.

First, Greece would go, then Spain, then Portugal, then France and eventually Germany.

But what happened instead, the world’s largest economy the Euro zone actually saw an increase of 10% in corporate profits in 2011.

Yes it had issues, lots of them…

But in a weird way, those weakness once sorted out, will become their strengths as the whole region becomes more fiscally responsible.

The euro will not go into recession. It will grow by a modest 2.0% GDP.

This is a miracle in itself if you believe all the bad news that is out there.

But what of Greece, today being yet another D-day on whether they will or won’t default.

Here is what will happen if they do default (unlikely). The equities markets will fall for a day or two and then reset for what is to be a great year for the stock markets globally…

Especially right here at home in Australia.

Most smart folks have factored-in a Greek default and if it comes, no one will be surprised or shocked.

Don’t get me wrong, the Europeans have lots of issues to address, but with the back drop of a stronger global economy lead by the US recovery and even stronger China, Asia and Latin America… It will have the time to sort out its issues.

Again, the RBA recognises this and did not lower interest rates.

Speaking of the US, it will be a star performer in 2012.

The numbers are not out yet… but the old US of A is on the rise again.

It is showing stronger consumer confidence, consumer credit, stock levels at record lows, jobs improving and increasing.

… All of this leading to a great year for them.

Plus add to that huge piles of cash sitting on the sidelines, a slight change of market sentiment will see a flood of equity and broad global markets buying in.

So what about China? We keep reading and hearing how their growth can’t last and they are on the brink of a collapse of gigantic proportion.

The latest data showed an amazing 9.1% GDP growth in 2011 and true predictions are for a “slow-down” in 2012 to 8.9% (very funny).

Sorry. No slow down, no almighty crash and no double dip recession.

Consider that the Europeans will be fine and the US is in the early stages of recovery, the Chinese will benefit even more in a stable and robust global economy.

So what am I doing?

Well, I have been on the sideline with the equity markets for a long time, but now l am a buyer.

My prediction is that it will be a great year for our stock market right here in Australia and if you do a bit of research and homework, you could make a lot of money this year.

Don’t believe me..?

Well take a look at a chart of the stock market for the first month of the year…

It’s up 7%.

Haven you noticed?

The trend has already started; most investor will miss it and probably get in when it’s too late.

Don’t be that person.

So, what’s your view? Do you have one?

If you don’t, you’ll fall into the view of “general consensus” which in this country, is whatever the media reports.

I have to admit, l am not a big fan of the stock market but l like making money and getting on a trend when l see one.

Also, l keep in touch with the overall economy as a whole and the markets are a great place to see in an instant what the sentiment of investors is and where money is moving.

Add to that, l do a fair bit of real estate investing and recently have discovered a strategy that is going to create an insane amount of cash-flow.

In a funny way, the stock market is a leading indicator on the longevity of that cash-flow in the real estate market.

Which ever way you look at it, 2012 is going to be a fantastic year if take action.

Don’t be a spectator – get involved.

Here’s what important, you MUST do your homework, research, due diligence and get educated.

…only then can you make an educated decision on what is the best step for you moving forward. It’s time to take responsibility of your financial future.

Don’t leave it to anybody else, it’s your life, your money and your journey.

The media has got a lot to answer for, however those guys are only doing their job. But if you are influenced by them, you are robbing yourself of an empowered future.

In fact, the understanding of this inversed truth is one of the best realizations you can have when it comes to time and money.

See, the only thing you have in life is time.

From the moment of your first breath at birth, the clock starts ticking. The sands start to fall down the hour glass. The fuse of your life was lit and starts to burn down. You landed on a spinning orb whipping around the sun at a rate of 16,000 miles an hour. The countdown of the number of sunrises and sunsets afforded to you starts ticking off.

All you have from birth to death is the timespan between them.

Once you leave the nest you quickly realise you need to support yourself; food, clothes, shelter and the like.

These things require money.

So to get it, you start trading some of your precious commodity, time, for the money you need.

Here’s where the tragedy is for most people.

They don’t graduate beyond this stage. They spend most of their valuable product, the time of their life, simply trading it for money.

It becomes a never-ending treadmill of spending their time to gain money only so they can sustain themselves longer to spend more time working for the money they need all over again.

And we wonder why people are stressed out, unfulfilled, and not having the time of their lives.

Here’s what wise people do…

They learn the knowledge and skills to be better traders or their time.

The money they earn from their time they invest and have their money make more money, a surplus. This will allow them to eventually gain time freedom.

Wise people seek leverage of their time meaning they look for ways to earn money not directly tied to their time. This involves building a business where you earn money on other people’s time and effort or you spend a finite amount of time building products and services that can be resold over and over with no additional investment of your time.

This is what’s called an RROT, a reoccurring return on time.

The most overlooked time money relationship is wisely spending your money to buy back your time. Ask the wealthiest person on the plant, at the end of their life the one thing they wished their money could buy and their answer will always be time.

At the end of your life it’s the one thing money can’t buy – but along the way it can.

Let me give you the greatest secret of the rich and how to buy more time…

First, you have to know what price you’d be willing to pay for more time and that starts with valuing your time.

Let’s say you want to earn $150,000 a year.

At 50 weeks a year, 60 hours a week, (by the way, don’t kid yourself with just a 40 hour work week).

That means your time needs to worth $50 an hour.

Now here’s the “math magic” successful people know and apply.

How many of your 12 hours a day are you doing less than $50 an hour work?

What tasks, meetings, and functions are you doing that don’t yield at least a $50 an hour outcome? The first thing to do is figure out which of those tasks or functions you need to stop doing.

Those are a waste of time.

Next, which ones still have to get done but aren’t $50 an hour work.

That is where you can buy back some time by hiring somebody say at $25 a hour to do your $25 an hour work while you stay focused on your $50 an hour work.

You immediately have a margin of $25.

This is where I see most people not being able to get off the treadmill.

They spend their valuable time doing low wage work, thus not being able to prudently spend their time on activities that increase their income; filing, database entry, organization, research, eating preparation, common correspondence, bill processing, website maintenance, etc. etc., are activities that are neither not your highest and best used tasks or can be delegated at a much lower rate.

Now with your increased efficiency and increased income, you can invest some of that margin into buying back some of your time.

Cleaning your house, mowing your lawn, washing your car, changing your oil, planning your vacation and many other functions can be hired out so you can use your precious commodity, time, doing things that bring you richer, fuller, more joyous experiences; certainly more joyous than scrubbing your toilets.

So not only do you trade your time to get money, to be even wiser trade your money to get more time.

Does that make sense?

I hope so because it’s the key to making more money, spending less time and getting more from the precious little time we have on this planet.

Signed with Success,

Jon Giaan
Knowledge Source

You know, it’s never one thing, but a combination of many different aspects… But at the top of my list are two things.

#1. There are no failures – only results.

#2. A results person never quits.

Ok, they’re pretty simple. But what I’ve learnt is that success is largely hanging on and learning from your mistakes after others have quit.

I’ve always studied successful people and what I’ve found is that they’ve always made plenty of mistakes, got knocked down and kept getting up.

Again, and again, and again…

Consider these examples…

- Dr. Seuss’ first children’s book was rejected by 23 publishers.

- Michael Jordan was cut from his high school basketball team.

- Henry Ford failed and went broke 5 times before he succeeded.

- Ernest Hemingway revised The Old Man and the Sea before submitting the manuscript for publication.

- The University of Bern rejected Albert Einstein’s PHD dissertations, saying it was irrelevant and fanciful.

…I love the story about a high school basketball coach who was attempting to motivate his players by standing in front of them and saying, “Did Michael Jordan ever quit?”

The team responded, “No!”

“What about the Wright brothers? Did they ever quit?”

“No!” said the team.

“What about Mohammed Ali, was he a quitter?”

Again, the team yelled, “No!”

“What about Elmer McAllister, ever quit?”

…there was a long silence. Finally, one player was bold enough to ask, “Who’s Elmer McAllister? We’ve never heard of him.”

The coach snapped back at them and said, “Of course you’ve never heard of him…

… HE QUIT!”

What about this..?

Babe Ruth, the greatest baseball player of all time failed 77% of the time and was struck out 1,330 times.

He failed twice as much as he succeeded. But he never gave up.

I’ve got a saying that is posted on my desktop that says, “Failure I can live with… Regret I cannot.”

I don’t know where you are at at the moment, but if you’re dissatisfied, feeling a bit disillusioned, flat and unmotivated – they could be symptoms of the “giving-up psyche.”

I want to leave you with the famous words of Winston Churchill.

“Never give up, never give up, never give up.”

Signed with Success,

Jon Giaan
Knowledge Source

Ok it’s not 100%.

Nothing is 100% guaranteed to work.

…but hey, 97%?

The odds are stacked in your favour aren’t they?

….and you know what, there is really one thing that you MUST do to make this happen.

Before I tell what that is – Here’s the proof.

Harvard business school did a study on the financial status of its students 10 years after graduation and found that:

- 27% of them needed financial assistance.

- 60% of them were living paycheck to paycheck.

- 10% of them were living comfortable.

- 3% of them were financially independent.

The study of course went into the reason why, and here’s what they discovered….

The 27% that needed financial assistance had absolutely no goal-setting processes in their lives.

The 60% had survival goals at best…

The 10% had general goals… Nothing specific with any system to monitor or track.

The 3% that where financial independent had…WRITTEN OUT… their goals and the steps that were required to reach them.

So the secret is really simple and easy…if you want more in your life, you need to get really clear and specific on what that is and use the system I gave you yesterday to have a 97% chance of achieving it.

Starting with the first step…. write them down.

As if you need more proof, right?

Well I got plenty…

Here’s what behavioural researcher, Richard Molden and Steven Swaverly had to say in there study – The Psychology of Top Performers:

“Writing down action plans provide a clear path for the getting there, and written time frames allow them to track their progress. This serves to increase the level of awareness for the events, opportunities and the actions that can carry them closer to their intended goals.”

“There is even evidence that written goals produce this elevated level of awareness through some very specific neuro-chemical effects”

Wow, how’s that? You can even get high writing out your goals… Beats the side effects of drugs!

Now I know that fancy-pants studies are all good and that… But personal experience is much better.

Around 1999 when I got serious about making money, I really resisted the goal setting process, but I begrudgingly followed the system that I shared with you…

….just 4 years later I was a millionaire.

Today I’ve used the same system with a few tweaks here and there and can say that it has continued to produce the goods if you stick to it.

In fact as I sit here writing this email to you, I’m at my holiday home at Noosa with my backyard being the river and National Park land behind it…( a byproduct of one of my goals).

It’s a serene and beautiful setting to be planning the great achievement’s of 2011 that I’ll be embarking on…

I’m working on my master plan for 2011 in all area of my life, not just financial…

What are you doing right now?

Are you going to to take this goal setting stuff seriously…???

Follow the system that I laid out for you and you’ve got 97% chance of success…I like your odds…

Like I said yesterday… I’ve got a special feeling about 2011…it’s going to be marvellous.

Signed with Success,

Jon Giaan
Knowledge Source

You just have to love Australia don’t you? It’s one of the only places in the world that shuts down for a whole month….

I don’t know about you but try to get something done in January… Virtually impossible.

Find a tradie, go to your favourite restaurant, get a new job, get a hold of a solicitor or if you have a business, make a sales call.

Hopeless…hopeless…hopeless…

I realised this along time ago about January and instead of getting frustrated I just did the only sensible thing…

…Join the party and not do much.

….that’s why I love January.

It’s a time to totally chill out…spend quality time with the family…eat alot…sleep heaps and start to plan and brainstorm your master plan for the year.

Hey, here’s a thought…Maybe that’s why new year resolution don’t work…

You take a stance on Jan the 1st and make a serious declaration that this year will be different, write everything down and then as you’re about to rip into action…

Nobody is around, everyone is away on holiday or about to go on holiday…

You’re pumped, motivated and all alone… not a good recipe for success.

Could that be the reason why new year resolutions don’t work?

Here’s another that probably makes more sense…

I discovered this 10 years ago and it changed the way I set goals and plans..

You see what most people do around this time of the year is seriously flawed.

Here’s why…

They think their goals are goals – when in fact they are merely dreams… We all just fantasise about how great our life could be.

A few examples…

I want to get a bigger house…

I want to travel around the world for 6 months of the year.

I want to earn $250,000 per annum.

I want a black Ferrari.

I really want to send my kids to private school.

….etc… etc…etc

Everything I mention above whilst at first glance seems possible – they are all in fact just dreams.

Look, lots of people are happy enough dreaming of one life and living another.

Why I think this is dangerous is when the gap between fantasy and reality results in unhappiness or even depression.

However there is a way to turn some of your dreams into reality.

First, to turn your dreams into goals, your goals have to have these 4 ingredients:

1 – Specific
2 – Actionable
3 – Time Oriented
4 – Realistic

Here an example…

Specific
I want too be rich (Dream)

I want to have 12 investment properties with a net worth of $6,000,000…(reality)

Actionable
Find the best educational resources on real estate an be mentored by some one who has done what I want to do.

Time Oriented
Developing a $6,000,000 net worth is a good start but developing a $6,000,000 net worth in 7 years is even better.

-Realistic

Now, developing a 6 million dollar net worth in 7 years is realistic, doing it 12 months is not.

If any goal you set recently don’t have these ingredients them I’m afraid your goals are doomed to failure.

….I’m not finished yet – there’s one more step.

Now that you have a plan, you will need to break that down into seven-year, one- year, monthly and weekly tasks and finally daily tasks that will make it possible to achieve your medium term goals and longer term goals.

I call this, “Starting with the end in mind.” … it works really well.

For example, seven year goal:

Real estate investment portfolio of 12 properties with a net worth of 6 million dollars.

First year goal:

Eliminate $26,000 worth of bad non tax deductible debt.

Monthly task:

Increase annual income by 30% by adding value in my job. (If that’s not possible start an online business that make me $2,700 per month of revenue).

First week task:

Build a criteria list of the type of real estate I will focus on…find a successful real estate investor and take him or her out to lunch.

First day task:

Ring my bank manager and arrange and an appointment to discuss credit facilities and borrowing capacity.

Ok now that’s what a master plan looks like.

Starting today you’re going to be performing tasks that support weekly goals that in turn support monthly that support yearly that support your seven year goals.

One tip…

Take action today.

Sit down and write your plan out today and turn your master plan into reality.

It’s the only chance you got in making 2011 your best year ever.

Signed with Success,

Jon Giaan
Knowledge Source

If you follow the markets, you would have woken up to the shockwaves that happened on Wall Street last night.

The Dow Jones was down an amazing 1,000 points in early trading!

The biggest ever drop since the 1987 crash.

WOW!

The good news though is that it recovered and ended up 350 points down at the end of trading.

There are not many days in the financial calendar where you would call a 350 point drop in a day a “good day.”

However, after the shenanigans of the morning, you’ll probably agree with me that yes indeed, it ended strong (bit of an oximoron, but true).

Reason for the massive volatility?

The Greeks, The Spaniards and The Euro.

So what?

Well, there’s money to be made with volatility.

My thoughts, closely monitor the Greek banks, there is a massive buying opportunity right now. You could double or triple your money.

Nah, not interested in that?

Ok… Sell off the Spannish banks.

Heaps of profit in that.

Even that’s too hard?

Do some technical analysis on the Euro and sell that off when it break through a decent support level (Don’t know what that means? Education, my friend).

Still too hard?

Last one…

Go on a holiday to Europe.

The Aussie dollar is up about 29% against the Euro… Which drives your holiday dollar a lot further.

Yes, it is the best time to go to the Greek Islands, financially, that we’ve had for over a decade. I’m thinking about it.

But closer to home, we of course have had our own dramas over the last few days, ever since Rudd, Swan and Henry came up with a new tax blueprint.

The word “tax” for me hold no positive connotations. I always get nervous, even when they say that they’re going to lower tax.

What I found interesting about the new tax blueprint was the massive effect it had on the resources sector all this week.

$14,000,000,000.00 (14 billion dollars) was wiped off on Monday after Ruddy announced the super resources tax.

Imagine if someone came into your home and said, “We know you’re making a profit, and you’ve got a decent surplus… We’re going to increase your tax by 40% because you’ve been good at making profits.”

You wouldn’t stand for that, would you?

But that’s what they did with the resource companies, gone in there and said, “Makin’ too much money… Give us some.”

There’s another group of people who go around doing that, they’re called the mafia. For them it’s illegal, but if a government does it, it’s ok.

But you’re probably thinking, “Jon, they’re big companies, they can afford it, we should get a piece of the pie.”

You know what that’s called?

Communism.

Ok, a strong word. Maybe we should change that to modern day socialism.

Here’s how the resource tax works…

They give with one hand a little, and take with the other a lot.

Ruddy justified the tax by saying that the royalty tax will be removed and this new super-tax introduced.

It might on the surface sound like a fair swap, but here’s how it works out.

If you’re a start-up business, and you’re not making profit, the royalty tax hurts because you have to pay it either way.

So the government’s thinking is, “We can help the new businesses get off the ground, become more efficient, and when they start making money they’ll be able to pay us more in the long term.”

It sounds like it’s fair enough – don’t you think?

Help the small companies in the early stages and get paid lots more when projects come into full production and fruition.

But companies aren’t stupid. Their agenda is to maximise profits, minimise expenses and keep shareholders happy.

Tax is an expense… and a big one at that.

Big companies aren’t going to take this super-tax lightly, they’ll do whatever they can to hide profit, pay executives bigger fat salaries, move their focus to overseas projects where the returns on capital are higher and by and large, Australia becomes the laughing stock of the world as our smart resource businesses sell out.

So nobody wins.

I think the boys in Canberra, if they’re not careful will cook the goose that is laying the golden eggs.

Ruddy’s already doing a back-flip on the super resource tax, quickly trying to patch up the mess that he’s created, giving excuses already and suggesting that he wants to work with the mining companies to figure out the best possible solution.

After all, the new tax blueprint was only a suggestion. It still has to be signed off in parliament.

But Ruddy put himself in the corner, didn’t he?

After that announcement on Sunday night, surely he would have expected a sell-off the next day in the resource sector…

If he says he expected it, then he’s personally responsible for the billions of dollars that shareholders lost through the early part of this week. I’m talking about every day Australians who have invested in the recovery and put all their hard-earned money back to work after the dramas of 2008.

I’m not talking about the fat-cat executives, they’ll make money whichever way it goes.

But back to Ruddy’s dilemma.

If he says he didn’t expect it, then that highlights how stupid the government really is to expect otherwise.

Either way, it was poorly executed and presented.

Knowing how the government does stuff through its advisory channels, it would have all been arranged behind closed doors with very little consultation with the industry – and based on theories and spreadsheets.

There is a thing called reality which works a little bit different.

I wonder how many people who are close to this legislation bought put-options on BHP on Friday afternoon..?

Their friends and families would have made a killing.

In time though, we’ll see how dumb politicians really are when it comes to light that potentially related parties took advantage of this information.

It’s called insider trading and you go to jail for that. But maybe politicians don’t, not sure.

So why am I telling you all this?

Well, you have to get smart about investing and keep your finger on the pulse. No point blaming the governments as to the reason you are poor or not progressing, or not moving forward financially…

It’s your responsibility to manage your own money and take advantage of quirks like these in the market.

Lots of people would have made money on Monday, a lot of money.

Simply by following some basic stock market principles and understanding how to make money when the market goes down using either options, futures or cfd’s.

Also, there’s never been a more important time in Australian history to make sure that you don’t fall victim to these socialistic acts of the Government, to steal the wealth of its citizens under the pretence that they’re making it a better place for all to live.

So be warned. I think this is the first of many attempts by the government to fill up their coffers with money they don’t deserve.

Your job is to get smart, grow your wealth and protect it like a hawk.

That’s all for today.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. I’m of no political persuasion. Freedom of speech and the freedom to create the lifestyle of your dreams is what I’m working towards. All governments interfere… Some more than others.

P.P.S. I’m sure we’ve got some die-hard followers who want to jump on the soap box and have a bit of a rant and rave… Go for your life my friends, comment below.

“Buyers Retreating From the Market in Droves!”

Now, last time I looked we were in a property boom, right?

…and the last 12-18 months have been nothing short of sensational profit-wise, even if you have a small portfolio.

Yet, once again the newspapers and non-property investing journos spook the market with outrageous headlines like the one above.

So where did this headline come from? This headline lead to an article based on how many new loans there are in the market based on previous months measures.

“Victoria Slides By 12%, NSW Goes Off The Boil By 27%, QLD 25% and SA 29%”

Based on those figures, you’d be thinking that there has just been a property crash that hasn’t quite made the front page news.

…but the figures themselves need further investigation.

Let’s have a look at it.

Here’s what they relate to… New loans opened specific for properties.

The survey was taken by the Bureau of Statistics for February which highlighted the worst month for new home loans since 2001.

Just an aside here, I can remember 2001 really well. It was just after the tech-wreck. And maybe just a coincidence, the property market took off in 2001 and didn’t stop until 2004. It’s important that you have some historical information when you look at stats like this.

Anyway, back to the article’s prime focus.

In February, a mere 2728 Victorian first home buyers took out loans, down from 4206 in July before the phase-out of the first home owner’s boost and the Reserve Bank’s string of interest rate increases.

…but in the same article, a long way further down it says,

“The latest RP Data figures show Melbourne prices climbing at a blistering annual rate of 19 per cent and Sydney prices climbing 12 per cent.”

Confused..?

You should be. I would if I weren’t a seasoned property investor and understood how to read between the lines.

But let me help you out…

If you had attended one of our recent real estate events with Dymphna Boholt, you’d be able to answer this question yourself.

Here’s why…

Dymphna mentioned that certain areas were going to dramatically grind to a halt and even reverse in prices. Those areas are the ones that this article talks about.

It’s all of the couples buying their first home and taking advantage of the first home owners boost scheme. Now gone, hence the pull-back on new loans.

You see what happened last year was unusual with how real estate tends to move. Very, very unusual.

In normal cycles, you’ll start with inner-city growth and then ripple out towards the suburbs as prices get more expensive and people are pushed out of their first choice and of course settle for the next suburb out.

Making sense so far?

…but in 2009, thanks to the government it started the complete opposite to that. Inner city properties were slow and anything around the $400-$500k mark was on fire.

We of course saw that, and those that attended our events got a head-start on the rest of the market as to what was to happen next.

Let me fill you in…

All of the free money, plus the boost scheme stabilised our economy… Meaning that confidence grew, big companies started spending again and bonuses and promotions were back to normal.

With that confidence (and several other factors), the real estate market returned back to normal and the smart and big money came back in a big way.

What you’re seeing now is massive growth in most of the inner-city areas on the East Coast.

Blue chip properties are now on fire with the average clearance rate Australia-wide at 75%.

The outer-lying areas are flat and probably will remain that way for a while. It’s these areas that are more sensitive to interest rate rises, which will only add to slowing that market down.

Now I’m not advocating that real estate prices are going to continue at 15-20% growth per annum for the next 3 years. We know that is not going to happen.

…but, here’s what will happen.

We will see a consistent and steady growth of 7-10% per annum at least over the next couple of years.

Plus, certain areas will have stand-out performances based on the normal trend of real estate and the ripple effect of 20%+ capital growth.

So what does all that mean?

In the stock market they say the trend is your friend.

In the real estate market, they call it a property boom and spook everybody into doing nothing.

It’s time to ride the trend, but be smart about where you buy and what you buy.

Be warned, not all property is suitable for investors. In fact, only 10-20% of property on the market at any given time is actually worthwhile considering as investment-grade material.

I hope this cuts through the B.S. and adds a bit of clarity to your thinking.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. I don’t just talk about this stuff, recently I signed an unconditional contract on a block of units in a suburb called Coburg. Do your homework and you’ll find this suburb is directly benefiting from the ripple effect I’m talking about.

P.P.S. Ok, you probably want to know the numbers… 3 x 2 Bedroom Units at $990,000… $330,000 each. The median for units in that area is $390,000. Don’t let people tell you that you can’t make money in a booming market.

Yep, I know it’s Saturday and I’m here at the back of the room at our last ever Cash Flow For Life event.

A friend of mine sent me this video yesterday and I thought today would be a great day for you to watch this.

I’m a pretty positive and optimistic person… But this short video inspired me.

Here are the things that I got out of it…

* Focus on making a difference.

* Represent an idea.

* Decide who you’re going to be.

* Protect your dreams.

…There’s more, and if you’re curious as to who has said these powerful words, you’ll be very surprised when you watch this.

I’ll explain shortly.

But the press is at it again with all of their opinions about the real estate market currently in a boom.

I talk to lots of people on a daily basis and many are hypnotised by the press, believing that now is not the right time to get into real estate – because prices are too high.

I’ll deal with whether it is or isn’t shortly…

It’s hard to sometimes go against the overwhelming tide of opinion, but that’s what you have to do in order to become successful.

The masses are always wrong…. So this is the time to stand tall and profit like crazy. If you’re willing to stand out from the crowd and go in the opposite direction.

There is a real estate monster out there, and let me tell you what’s not. It’s not all the B.S. and rubbish you hear about from wannabe economists, cleverly disguised as journo’s.

In fact, those guys are trying to cut down to size this real monster that was created about two years ago and will continue to grow for maybe even decades.

You’re curious now as to what I’m talking about…

Here’s how the real estate monster was created…

First, we had a serious economic catastrophe. That is well known as the GFC. The government had to react somehow, all the smart guys in the world were literally printing money and throwing it at the problem – so why should we have been any different?

Amongst many of the resolutions for underpinning our economy was the boost to the first home-owners grant.

The government knew well in advance that when they released the first home-owner’s boost there was already a real estate supply problem.

The only outcome when you increase demand and know that you can’t possibly supply, the price of that asset will go up. That’s exactly what happened, didn’t it?

I saw this early last year, and we’ve been screaming it out loud ever since. Some listened and profited, others sat on the fence and missed out.

…and there are people who sent me long-winded emails on how property was going to halve, the sky was going to fall down and we should all fill our pantries up with canned food for the coming depression… Seriously.

The government created this monster and fed it on a diet of free money.

So the boys in parliament have got a problem now, don’t they?

After putting all these people into homes for the first time, and knowing full well that the prices are likely to inflate – how do they go back now and unleash supply (which will deflate prices)?

There’d be blood on the street if this was happen and every new first home-owner would be a “lamb to the slaughter.”

Tony Abbott, who is probably not even across this basic economic analysis should be laughing right now if K-Rudd does the unthinkable and increase supply.

The housing market is now a political hot potato.

But to just increase supply is no easy matter. It doesn’t happen overnight and it could take 2-3 years before we can get it right.

As an investor, you should know this and I’m doing what I can to put my perspective on it.

As people talk down the property market, I and others continue to make easy money, month in month out, simply because we have portfolios that just increase in value whilst we sleep.

The money you make when you sleep is the easiest money you’ll ever make in your life.

Now let’s talk about the future… The housing market will be facing some real pressure all the way to 2050. Yeah, I know that’s a long time away but it’s a trend and a timeframe that you have to consider when you’re a long term investor.

The government is pushing for a population of 36 million by then.

…and by 2030, if this problem is not dealt with, the undersupply of houses is reported that it could reach a 1.5 million shortfall.

That can only mean one thing… Prices will go up, millionaires will be made. Are you in or out?

Now 2030 is a little bit more realistic for most of us, that’s a good 20-year cycle, and you’d be foolish to sweep this information under the carpet and miss out on potentially 3 upwards cycles leading into 2030.

What I mean by 3 upward cycles is property doubling in value every 7 years from now till 2030.

Most people’s thinking is too short term when it comes to property. I learnt this several years ago, that you have to think in cycles when it comes to property. I’ve been involved in only 2 property cycles and literally have made millions.

Back to the problem…

The government has a clear agenda to increase the population, whilst the state governments are scratching their heads as to where these people will live.

It wasn’t long ago that Bob Carr, the former premier of NSW was saying that Sydney is full and literally making it impossible for future planning and growth.

There’s a stock market saying called divergence… Usually when this happens we get a significant trend either way.

Here, all fact considered, the trend is towards the upside.

So what do you do?

Well, you can simply do nothing, sit on the fence and just take my view as another opinion – nothing more than that… Or, you can let the Federal and the State governments battle it out and buy as much property as you can in the next 5 years and take advantage of this unique time in Australian real estate history… and become wealthy beyond your dreams.

I know which road I’ll be taking… Do you?

At this point, I would typically get excuses… Don’t have a deposit, can’t get a bank loan, bad credit, blah, blah, blah…

I can solve all that for you within 4 hours tops. How?

Just one of the presentations at our Cash Flow For Life conference deals with these problems and solves them. If they are your excuses, then you need to be at that event, don’t you?

Anyway, I digress.

Have your say below, I’m interested in your opinion.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. The real estate monster is real, and it can be your friend if you know how to tame it and use it to do good instead of evil.