4th December 2019
Life gets harder and harder financially as we age, but does it have to?
The answer is NO, it does not have to, when we understand how money works.
Wages do not generally increase with inflation.
This means, $100.00 today will not get the same amount of goods as last year. It may take 110 or 120 to buy the same amount of goods we bought last year. This variation is “inflation:”.
If the money does not buy the same and we do not get ‘pay rise’, we will end up buying less with our monthly or weekly pay.
If the yearly pay does not increase, we will definitely fall back in the amount of goods we can buy with the same pay one year after another.
This is why many are struggling financially, our money no longer gets the same as what we bought a year or years before.
What is the one thing that KEEPS UP with inflation?
Why do we hear that properties jump so much and we cannot afford it?
Properties were doing ‘catch up’ with inflation!
Think of the property price jump as the property getting a ‘pay adjustment’ from the company to keep up with inflation.
If you catch the ‘jump’ you will have made a lot of money with properties.
You will not have your company doing a ‘pay adjustment’ like property because of inflation, we may be lucky to keep our jobs as the company does not grow over time!
Plan a little, INVEST in properties.
Not just one, but a few properties, with time, with the ‘doubling years’, you can sell one and pay off the loans to the bank, then just wait for the money to keep going into your bank account every month, without you having to drag yourself out of bed to go to work!
Why don’t we buy more properties?
We tend to see only the NEGATIVE side of properties, the “property is expensive”, “it is too expensive to buy property”.
This is TRUE, the question you want to ask is, “if I cannot afford it now, will I be able to afford it 10 years from now”?
The best time to buy properties is ALWAYS NOW, never, in the tomorrow!
For this, we need to learn to see the POSITIVE side of properties.
What is the positive of properties?
MONTHLY RENT going into your bank account
You will have that POSITIVE monthly rent, your properties is putting in your bank account when you have reached the doubling years and sold to pay off the loan.
Bet on the winning horse, bet on properties over time, you will always win. Remember to choose the right location (refer to previous blogs) for your properties! Actually, is it really a bet when you are sure to win?
A bet means you have a chance of loosing, but when you are sure to win, is it really a bet?
Property is an excellent investment for our future and our children’s future.
Have a great day, everyday!
Licence Real Estate Agent | Stock and Station Agent| Auctioneer | Strata Manager
Oracodes Realty Pty Ltd
Licence Real Estate Agent in NSW.