Listen in as Graham “educates” his eldest child on the ins and outs of buying investment property. Lesson #6: Playing the Long Game.
No complaints this month, other than someone has been drinking my vodka!
Okay, back to property investing, remember how rugby became more enjoyable once you committed to being in the game and looking for things to do during the full 80 minutes rather than just being a spectator? Investing is the same.
Studies on successful sports people have shown that they all acknowledged the journey was not always easy. They each had their ups and downs and bumps along the way. Property is the same.
Being in the game means you will at times feel like you have been in the game. What do I mean by this? Well, sometimes you are going to have to write out some cheques (as you should). This month I’ve put in a new stove top, new door handles and new lawn mower (whole other story) all into the same property. The bank account has suffered this month. I don’t like that, but it does happen. Even though I budget for it, I still don’t like it.
But just like a successful sports person who expects those bumps along the way, it’s really important to remind yourself that these bumps are what the game is all about. If you can stay strong in the short term you’ll be in it for the long game and this is where the gains are made.
Many of my clients forget that the game has some ups and downs. They then sell quickly and miss out on the benefits of being around for a long time. The house with the new stove is worth more today than what I paid for it. The growth hasn’t always been constant (nothing for the last six years) but now it has started to move and I’m benefiting from being in the game and all it brings.
Actually, to be fair, son, you are benefiting as well. Which is the point for me!
Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.