Turning Market Pain into GAIN!

Property Report 1: Turning Market Pain into GAIN! 15/02/2008 , by Phil Jones
		Audio File
		This week the property market has received some bad news. So how should investors interpret the "crash" "slump" and "run for the hills we are all about to lose thousands" hysteria. And what practical steps should you take right now? And what about profits, are they still possible? There is no doubt the market is flat and is softening, that's what happens when the demand for property diminishes as I wrote would happen in my blogs last year and is confirmed by the recent statistics from the NZ Herald and REINZ displayed below: But this is A GOOD THING! For years investors have been windging that they cant purchase property at a DISCOUNT, now you will be able to get deals at a Discount EVERY WEEK. Every smart share market investor knows shares are best bought when the market is soft and the shares are under valued, property is the same! Yipee. Its a buyers market and now the POWER is on your hands, make sure you use it! And as prices on residential real estate purchases reduce.... > Cashflow Increases because you are paying less to buy a property > Yield Increases > Immediate Equity Increases Blue Peak Licensees must be thinking all their Christmas's have come at once right now! Over the next little while I'm going to write a series of blogs on how to profit in the current property market. These blogs will be punctuated by the odd different blog to break things up and keep my blog reading interesting for you. The Number 1 thing investors need to do right now is not get EMOTIONAL. Property investing is a business and we need to treat it with respect like a business owner and make decisions based on facts, processes, plans and real achievable profits. Professional business owners don't take advice from cackling housewives on "how to complete a free trade agreement with Mongolia", neither should you! Emotion will compromise your investing and kill you, avoid it like the plague, now is the time to be decisive, calculating and make decisions based on the numbers. The Number 2 thing investors need to do right now is FILTER. Its critical that you check the facts, validity and accuracy of information and filter everything particularly when its from the media. All too often one sound reported statement is hijacked by a "pity party" of wining others who transform the issue by adding a range of outrageous comments. Focus on the facts and filter out the waffle and emotive hysteria. Investing is about the facts and the numbers nothing else! Peoples opinions are never reasons to base investing decisions on. The Number 3 thing investors need to do right now is NOT REACT. A reaction is often an emotional response to a fear. And often FEAR is: > False > Expectations > Appearing > Real Your actions as an investor need to be considered, deliberate and part of your overall investing plan. Reacting to situations often only creates more of a mess and disjointed chaos. Show maturity, understanding and balance. Weigh your next move with the focus, concentration and skill of a chess player. Do not react like a light headed Pixie. The Number 4 thing investors need to do right now is PLAN. You must operate to a plan that is firmly based on the numbers and your current financials. The first step in formulating your plan is to map out where you are at right now using the RevIQ software. Load all your portfolio into RevIQ including your own home, load the mortgages, what banks they are with, the interest rates, when the rates expire, your rental income on each property, budgeted annual repairs and maintenance and your chattels valuations on each property. You can't move forward until you intimately understand your current starting position. And if your don't have RevIQ buy it, it is the most essential planning tool you need right now. RevIQ's house sales downloads are going to make investors a lot of money this year. You cant afford to miss this critical information. The first thing you should do today is an updated download on each of your properties so you have a snapshot of the current value of each home and each ones available equity. The Number 5 thing investors need to do right now is EDUCATE yourself. The upward lift in the market over the last 4 years has insulated a lot of uneducated investors, it has been pretty easy for most people to make money even though many had little or no idea what they were doing. Today's market is different, you need to be on your game, know exactly what your next move needs to be and execute it with expertise, skill and care. Paul Hogan said once: "Don't bring a knife to a gun fight". Investors that don't arm themselves with a strong solid education for TODAYS market risk suffering serious injuries.