Metaphors

Whenever we explain something by likening it to something else we are using a metaphor. Every great teacher has used metaphors to help people to understand. Understanding the value you can achieve from getting involved in property now can pay rich dividends in years to come. You can’t change your past but you can change your future. When we look at the actual cost of mortgage borrowing across the years of a mortgage term we are likely to pay back around three times what we borrow if everything goes smoothly. So a £100,000 house will cost us £300,000 to buy. When inflation takes hold the opposite effect takes place and the value of the money we pay becomes less. When Manhattan Island was sold to the Americans from the native Indians for a tiny amount of trinkets worth less than a hundred dollars they thought they had a good deal. Had the value of that money been invested at 8% compound they would have enough now to buy every building on the island with plenty to spare. Such is the true value of investing.

The banks, building societies and Government aren’t doing us any favors  They won’t make us rich, in fact they will be sure we get far less than they make and that our wealth actually reduces with inflation. The banks idea of compound earnings and our desire for compound interest are very different. When you want to make money with little behind you they don’t want to know, when you don’t need the money they’re falling over themselves to lend it to you. It’s the same with most businesses really, only with property instead of buying depreciating assets to produce something, providing you buy right, manage right and maintain right you should have an appreciating asset to cash in on. So where do so many prospective landlords get it wrong? The planning stage must be the first place to look. How do you find out how to avoid the pitfalls? Books are always a good place to start and of course we can recommend ‘How NOT to be a Property Investor’ by Lionel Palatine available on Amazon for a very princely sum. It may be sensible to avoid lots of expensive courses certainly until you read as much as possible as the money spent could be better used elsewhere. Networking can pay handsomely if you connect with the right people and are always good learning forums.

Working with experienced people is probably the best bet. Find the people you like and trust but don’t trust them with all your money. Working people could be well advised to start with a portfolio build service where they don’t have to put the hours in but can get the benefits down the line when they are ready to change career and then don’t have to struggle. This is one of the specialist areas Palatine Property Solutions can help clients with and our associates are very experienced in the field. Don’t let the emotions in your life rule you, let them be a call to action to make things better. Building a property portfolio could be your answer to freedom. It could produce more in the next few years than you could ever hope to make by any other route. There is probably no better time to get started than this very day, this month, this year as the signs are favourable to savvy investors. Lots of water has gone under the bridge in financial terms, now is the time to build for the future.

It’s been suggested that five minutes spent creating the list that sets down everything we want from our career, business and economic goals could be the most valuable five minutes of our entire life. Knowing the levels of abundance we want to achieve and what role in life we want to rise to makes the pathway clearer, the garden rosier and the road quicker. Try it, what have you got to lose? Just look at the five years coming up and ask yourself the pertinent questions. Set down how much money you want to earn on a yearly basis. Where would you like your business to be and in what industry? What do you want your net worth to be? When do you want to retire? What do you need to do to manage your money more effectively? What investments should you make? How much do you need for your children? How much do you want to spend on travel? What do you want to be able to afford to buy?

What is your career aim? When you have answered the questions in their entirety think about how long it should take you to accomplish each result.

When you have your goals set for what you want to do, you have to find a compelling reason to actually do them. This is usually better for others than our own selfish wants. When we want to do things for those we love we have far more drive, far more willingness and far more desire to see things through. Aim for the stars and you may hit the moon, don’t aim at all and you won’t get off the ground.

Always look to make more out of something than your usual story.

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