What is the real estate monster?
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,
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.