My biggest investment mistake | Don’t do this

At 25 you understand why poor decisions made when you were 15 were wrong; but imagine how your parents felt trying to tell you that at 15.

At 40 you look back on decisions you made when you were 30 and, with the wisdom of hindsight, can explain how you would do things differently if you could.

As people grow older and wiser there’s a sense of having arrived at a place where you are competent to make wise choices. 10 years later we realise that we are only at that place now and the choices we made earlier were not so great.

I’m going to share a personal story regarding my biggest investment mistake. Attached to it was a huge opportunity cost and in sharing this with you I hope you will not do what I did.

I was untrained in finance, unqualified and without a clue. That was me, yet for the decade of my 30’s I continued to listen to me, and make poor decisions as a consequence.

Young people never grow old

When I was younger, without the expenses that come with starting a family, investing wasn’t on my radar.

Why would it be, retirement was for old people? When you are young there is a sense that you will never grow old; not for a lifetime anyway.

Not considering investing when I had the capacity to was a big mistake; but it wasn’t my biggest one.

At 30; married with two children and living in the home we had built, I began to recognise the importance of investing for my future, but told myself that I couldn’t afford it.

I reasoned one mortgage was difficult enough, there was no way a bank would give me another one. I did not believe it was affordable.

Seven years on and still no investment property

At age 37 I began working in the property industry contracting to another company.

I was researching areas and properties and unearthing great property investment opportunities for their clients. I even sourced three development sites and was involved with those projects from inception to completion.

After doing this for a few years, and now with four kids at a private school, I continued to assume we did not qualify to buy an investment property.

I even spoke at numerous events where I shared the findings of my location and property research, and taught on the research fundamentals that influenced my conclusions.

At each of the 30+ events I attended the main speaker would tell the audience that their first step was to have their borrowing capacity assessed.

Clients would complete a simple form that gave a snapshot of their financial position, then a qualified professional would assess their position.

One day the penny dropped

One day the penny dropped and, realising I had nothing to lose, had Katrina’s and my borrowing capacity assessed.
Subconsciously a part of me had not done this previously because I had told myself I would be rejected, and rejection is something most of us avoid.

To my surprise we had capacity to purchase two investment properties, which we quickly did.

Untrained in finance, unqualified and without a clue | Don’t do what I did

I was untrained in finance, unqualified and without a clue. That was me, yet for the decade of my 30’s I continued to listen to me, and make poor decisions as a consequence.

I was 40 when we became property investors having let pass the previous 10 years; which had been very rewarding for those who owned real estate.

Had I taken action 10 years sooner, the equity we would have amassed would have allowed us to invest into more properties. And it goes without saying that we would have more equity today in all of those properties.
More properties with more equity = more wealth and more choices!

We learn from mistakes; it just costs less when they’re other people’s. You can learn from mine.

A boutique family business

MRD is a boutique family business comprising a team of experts who understand property and finance as well as any.

We work with our valued clients to develop individualised strategies that give them the best chance to profit over time.

Our method is to partner with you to ensure that as your property portfolio and wealth grows, so will your understanding and competency.

We are here to support you from first discussions, through teaching and mentoring, strategy, property selection, the processes around contracts and finance, finding a tenant and all the post settlement support you are going to need.

A big point of difference is that when you engage MRD, support will not end with a property sale. The settlement of your new investment property is actually where our partnership kicks into another gear.

Bite the bullet

I urge you to ‘bite the bullet’ and do one of two things right now.

  1. Take seven minutes and complete what we affectionately call a ‘My Starting Point’ (MSP) form. We need this to assess your current position (i.e. what I did at 40), or
  2. If you hate filling in forms, then call 1300 883 854 or contact us here and leave your best phone number and time(s) for us to call, ask the necessary questions and complete the form for you

You have nothing to lose by having us assess your current position and perhaps much to gain if you do.

Partnering with you for your investment success,

Nick Lockhart