I can’t tell you how excited I am that this moment is finally here. Real estate crowdfunding has officially arrived in Australia. My company Brickraise, has been over two years in planning – so much blood, sweat, tears, excitement, happiness and joy have gone in to its creation. I am so excited by the new possibilities that this online investing evolution will bring – real estate crowdfunding will make it easier for tens of thousands of people to build wealth for their future and it will facilitate the creation of thousands of homes that might not otherwise have been possible to build.
I count myself extremely lucky to have been born in Australia. Because of that happy event I have a very good chance to achieve great things – far more so than if I had been born in another nation that did not have any of the natural gifts, political stability, infrastructure and facilities that are available to us all here in Australia. We have one of the highest literacy rates in the world. If you want to live longer, Australia ranks right up there for longevity and health. If you want to be wealthy, we have one of the highest incomes per capita globally and planet of opportunity to invest in business or property or other assets to grow wealth.
In my lifetime, I have travelled to over 30 countries. I left Australia in 2009, after selling the Aspire Group, moving to France, Switzerland, UK and later Hong Kong, before returning to Australia 4 years later. Extensive travel and living in Europe and Asia opened my eyes in terms of the quality of life I used to take for granted here in Australia.
As an interested and aware property investor, I am sure you will see a lot of articles about what has happened in 2015 and many experts and commentators giving you their thoughts and predictions for the year ahead. These will include dire predictions and comments along the spectrum right up to overly-positive sentiments, depending on the particular barrow they are pushing.
What I want to get across to you is this – that while it is important to assess the last 12 months and try to guess at what will happen in the next 12 months – that property investing is not generally a 12 month thing, unless your business involves utilizing short term strategies like renovating.
So many people looking to create wealth and take charge of their own financial destiny are choosing to invest in property. One of the main reasons that real estate works so well is that it has the ability to produce a regular income from our good friends the tenants who pay us rent for the use of the home. This in turns provides us funds to pay our mortgages or if we are fortunate enough to have paid them out, that income goes straight in to the hip pocket.
The most important things you can do towards increasing your wealth for the future is to make more money right now. The second most important thing is making sure you have some of that money left over to invest. And the third, is knowing where to invest to make the real money.
It’s never an easy decision as to where to invest – property, shares, bonds or business?
There is one factor, above all others that governs the value of any asset. When I tell you what it is, your first reaction is probably going to be – no way, that’s too simple and it can’t be right. But it will explain a lot about how the world of money works, which in turn can massively affect how you go about building your wealth in the future.
You have probably noticed that stock markets around the world have been going haywire over the last few weeks, starting in China, where the Shanghai market has come off by over 30% since March. The contagion spread out across the globe, with the US & European markets registering some of the largest one day falls since the GFC. Even here in sleepy Australia, where our stock market accounts for less than 2% of the global share market value, the market dropped by $60 billion or so, in just one day (Monday 24th August, 2015). Amazingly, just three days later, that $60 billion in lost value, reappeared again when the ASX jumped back to its previous mark.
I firmly believe that home ownership is the foundation of wealth creation for most people. The wealthiest generation of our western civilization, the Baby Boomers (those born 1946-1964) are generally wealthy because of the store of value in their own homes.
The dream of home ownership continues today, in fact, no matter what happens to prices or finances, I think that the people of Australia will continue to aspire to own the roof over their heads.