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Confucius say... “property investor looking to create wealth
from real estate can learn much from ancient Chinese
Okay, so I’m not quoting Confucius verbatim, however the
teachings of the ancient Chinese philosophers still ring true in
today’s very different, modern world and have clear application
when it comes to the business of real estate investment.
Those property investors who understand the importance
that mindset plays in their wealth creation journey should gain
some insights from the following Chinese proverbs – a handful
of my favourites.
¿ “SOW A THOUGHT, REAP AN ACTION; SOW AN ACTION,
REAP A HABIT; SOW A HABIT, REAP A CHARACTER; SOW A
CHARACTER, REAP A DESTINY.”
I have found that your level of wealth will seldom exceed your
own personal development. That’s because your way of thinking
regarding money, wealth and prosperity will determine the
financial heights you reach.
You see, your thoughts lead to your feelings, your feelings
lead to your actions and your actions lead to your results. Your
inner world (your thoughts and feelings) will determine your
outer world (your results and destiny).
So first work on yourself, because your wealth won’t grow
unless you do. And if per chance you do happen to stumble
upon a financial windfall and your wealth takes a lucky jump,
unless you grow out to where it is, it will go back to where
you are because it’s very likely you’ll lose your money through
mistakes or mismanagement.
¿ “HE WHO ASKS IS A FOOL FOR FIVE MINUTES, BUT HE WHO
DOESN’T ASK REMAINS A FOOL FOREVER.”
One of the big mistakes beginning investors make is to think
they can do everything themselves. They do a bit of research,
crunch some numbers and suddenly they’re industry experts.
And of course you can’t tell them anything because they know
As I frequently say, if you’re the smartest person in the room,
you’re in the wrong room, so recognise the areas where you
need help and don’t be afraid to seek out expert advice. There
are no foolish questions, just foolish people who were reluctant
One more thing, don’t be put off because a learning
opportunity costs money. We all pay learning fees – either
to someone who helps us or to the market because of our
mistakes (which are usually very expensive).
¿ “A SINGLE CONVERSATION WITH A WISE MAN IS BETTER
THAN 10 YEARS OF STUDY.”
Finding a mentor is the fast track to acquiring the type of
property investment insights that can never be found in a book.
Seek out mentors who have already achieved the goals that
you aspire to by successfully investing through a number of
property cycles and just as importantly who’ve managed to
retain their wealth.
¿ “ONE MOUSE DROPPING RUINS THE WHOLE POT
One bad asset can be the proverbial fly in the ointment that
holds back your portfolio’s overall growth. So review your
property portfolio regularly.
If you find a property that, knowing what you know now, you
wouldn’t buy again today consider selling the, err, “mouse
dropping” in order to make room for a better addition to your
“pot of (property) porridge”.
¿ “A SINGLE SPARK CAN START A FIRE THAT BURNS
YOUR ENTIRE HOUSE DOWN.”
Every year unforeseen X factors come out of the blue to test
us, so look forward to the best of times, but prepare yourself for
Protect yourself and your portfolio against unforeseen crises –
be it a personal one, like losing income due to ailing health, or
something on a larger scale.
Insure yourself as well as your assets and maintain a financial
buffer you can dip into, should the need arise.
¿ “DON’T BE AFRAID OF GROWING SLOWLY, BE AFRAID ONLY
OF STANDING STILL.”
Sustainable wealth creation through property investment isn’t
a process you can rush. It takes time for compounding and
leverage to work its magic.
Self-made billionaire Warren Buffet put it a different way:
“Wealth is the transfer of money from the impatient to
¿ “THE BEST TIME TO PLANT A TREE WAS 20 YEARS AGO. THE
SECOND BEST TIME IS NOW.”
It’s never too late to get into the property game. Sure, it would
have been nice to do it when the median price of a house was
$100,000, but interestingly that seemed expensive to most
investors 20 years ago.
There are always opportunities in the property market. The
sooner you start, the sooner you’re on track to reaping long-
term riches. API
7 pearls of ancient
wisdom for success
Director of Metropole Property Investment Strategists,
www.metropole.com.au . His books are available from
INVESTOR PSYCHOLOGY // MICHAEL YARDNEY
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