I am holidaying in Palm Cove in Far North Queensland with the family for a few days, to get some sun.
(I live in Victoria, so we haven’t seen the Sun for a few months now).
And it’s paradise…
- Beautiful clean beach…
- Palm trees everywhere….
- Tropical islands…
- Great restaurants…
- Lush rain forests…
The only problem is…Many of the locals want to kill you!
(No, not the Queenslanders – the animal life).
For example, we’re going for a walk along a board walk by the creek in a few minutes.
And there’s a fair chance we’ll see a Crocodile sunning his/herself on the river bank.
This is a creature who looks at a baby in a pram and thinks ‘meals on wheels’.
Meet the Locals!
So, you’ve got to be very careful.
And then the ocean is lovely and warm…but it’s full of stingers and the odd shark (luckily, not so much at this time of year).
Anyway, all these dangers, got me thinking about the dangers of property investing – specifically the leverage.
You see, the reason why property investing has created so much wealth for everyday Australians is partly because of the leverage.
You can do a lot with a little.
If you buy $100,000 worth of shares and make a 5% gain, you’ve made $5,000.
If you use $100,000 as a deposit on a $500,000 home and make a 5% gain you’ve made $25,000.
That’s 5 times as much.
This is perhaps why I’ve met so many Australians who’ve become millionaires in property – but I’ve rarely met one who’s done the same in shares.
But that leverage also makes property investing potentially higher-risk as well – if you buy the wrong property at the wrong time of the market…
Then, suddenly that leverage looks a lot like a cunning Crocodile – out to eat your financial wellbeing!
That’s why it’s so important to invest strategically….and buy the right properties at the right time of the market.
The good news is investing strategist Todd Polke’s going to reveal what over $1 billion of property transactions has taught him – about finding suburbs that sizzle on tonight’s webcast.
You’ll learn how to adopt a strategic, low-risk approach to investing that’s perfect for today’s uncertain market.