The Ways of the Coach, Driver and Passenger

The child who is not loved by his or her parents will assume himself or herself to be unlovable rather than see the parents as deficient in their capacity to love them. Teenagers who haven’t yet learnt the ways of dating or perhaps not found their sporting ability, will see themselves as deficient rather than taking the time needed and understanding that we all learn and mature at different rates. It’s not so easy when you are in the situation to see the bigger picture though. It really is only through a vast amount of experience and a lengthy and successful maturation process that we can begin to see the capacity of the world around us and our place in it and realistically assess our responsibility for ourselves and the world we create for ourselves and our loved ones. Opportunities present themselves thousands of time without us taking action on them as we either see them or dismiss them or we may have a tendency to avoid them to escape responsibility. To seize them requires some fine tuning to appreciate, evaluate and not procrastinate. From our recent chats with people who have been through expensive property coaching courses, it appears that the willingness to assume appropriate responsibility for the growth of the mentee or passenger as we might call them is sadly lacking without continued payment into the coffers of the coach or the drivers vehicle as we could see it.

 

Unfortunately the drivers as we can term those giving the teachings, are often unaware and unconcerned of the sacrifices their passengers have made to pay for the journey. Often the passengers are overwhelmed with the speed and the drivers have scant energy for the responsibility of their passengers to take them safely to their destination. These blissfully unaware drivers often treat their passengers with vicious destructiveness and fail to accept their responsibility for driving, brushing off their passengers without the necessary attention to detail and just want to charge extra fares to take them any further. Whilst passengers put trust in the driver of their coach, the driver should also take the responsibilities of the job to get people to the right place. Some people make themselves sick and miserable from the motion, others never get to the end of their journey and even though they have asked the driver to help them get to freedom, the fare charges have been anything but fair and the passengers have stopped their trip even before completion of the first leg. Much of the blame is of course down to the passengers who in asking to be driven are effectively asking to be taken care of. Everyone must take responsibility for their own actions and none of us should pass the blame to others but driving a coach comes with responsibility too which regrettably we have seen to be sadly lacking. When the passengers turn into hitchhikers we are the guys that usually pick them up.

 

Sometimes a simple model can work better than a lot of talk as people generally either aren’t good listeners, can’t concentrate for long or very soon forget everything they learn as the practicalities of life take over. So much of property investment is about long term mind set. Even in today’s market, with a moderate salary and a young family, most people could effectively build a long term income for themselves and their children to enjoy by proper planning of their own journey, not just going where any driver thinks you should be dropped off. We can look at building a portfolio from a simple model into a twenty year investment plan or cut price ticket. For simplicity of numbers let’s say every property is worth £100K and you have available funds of £30K, this should be enough to get you to your journey’s end of financial freedom without you having to add more money or get into the intricacies of complicated finance etc. So you buy a property and get a mortgage of £75K and use your funds for the £25K deposit, additional costs and expenses and a contingency for the unforeseen. There is absolutely nothing wrong in having just that one property, providing it produces regular income. Obviously, that income is not for spending if you want to go the whole way but you don’t need to get to the end of the journey without taking the time to travel.

 

So maybe five years later when your family are more capable of looking after themselves you think it’s a good idea to buy a second property and using the income you’ve generated and by re-mortgaging the first property you have two properties with combined value of £200K and liabilities of £150K both earning good income into the pot, with capital growth and very little in the way of management needs as you’ve learnt so much from arriving at the second stop. Another five years later and the family have moved forward again and it could be a good opportunity to reach the third stop. This time we do the same again but buy two properties so we end up with four at £100K being £400K of assets and £300K of debt. In another five years we can double up again to £800K of assets with £600K of debt. Twenty years after starting we do it all over again as we have more time as our grandchildren are growing up and we have £1.6M of assets and £1.2M of debt all paid for by our lovely tenants. This simple model alone shows how you can build value by taking time on the journey rather than wanting it all now. This simple model doesn’t take into account capital increases which could easily double or treble the £400K of wealth you have built up. This simple model only really shows that when you take the coach you shouldn’t necessarily opt for the express way as the scenic route can be far more rewarding.  You could do it for your grandchildren to make their life more pleasant because it certainly won’t be as easy for them to buy their own property when they start their journey. Get on the right coach and the driver will get you to the right destination without you getting lost.

 

Always let your journey be the guide and you direct the driver.

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