What property investors can learn from Chinese investors
Many people tend to overthink about options and circumstances when it comes to property investment, leading to procrastination and, ultimately, wasted time and opportunities to reap more rewards out of their investment journey. One expert says that inspiration should be taken from Chinese investors.
According to Mark Bouris of Yellow Brick Road, property investment is simply about consistency and persistence.
He explains: “People, if they just look at the process—if someone wrote them a piece of paper with the process like get a pest and building inspection, make sure there’s no asbestos in the place, make sure there’s no borers on the floor, before you go and exchange contracts, make sure that when you exchange contracts this is what’s in the list, make sure you get an insurance policy on the property ... make sure, make sure, make sure. There’s maybe a dozen things. They just need to repeat these things. It’s all about consistency and persistence.”
This, Mark believes, is something every property investor can learn from successful investors from the Chinese community who have built and maintained big property portfolios by simply making a commitment for 10, 20 or even 30 years.
Those who find success in property investment know whose advice to take, and it’s not from their mates in simple dinner party discussions.
“In the Chinese community, they do it—they’re buying one a year or one every two years. They make a commitment for 10 years. They’re not saying, ‘Is it going to go up? I went to a dinner party and I found out our property price is (this and that). Someone got less than what we paid for.’ It’s irrelevant,” Mark said.
He added: “If you can afford the repayments, you’re looking at a 10-year cycle. Hang in there for 10 years, 20 years, 30 years—it doesn’t really matter. You can have it to the day you die, because by that time it’s probably given you such good, positive rents that it’s going to pay for your kids’ school fees. That’s the way you look at it. Not whether it’s gone up this year or that month or this month.”
According to Mark, property investors must consider the potential of their investments for the long-term.
“That’s why the [Chinese] community is so smart when it comes to investing in property. They never sell. They’re just buying, buying, buying for accumulation purposes. If you just think about the fundamentals of that, as populations grow, Sydney’s populations are going to grow. People have got to live somewhere. The reason why Sydney’s populations are going to grow is because this is where the jobs are. So people are going to come flocking in here, they’re either going to own or rent. One of the two ... There’s no other option,” he said.
He concluded: “The game for you is to make sure that you hold for as long as you can. That’s the deal. It’s simple.”
Tune in to Mark Bouris’ episode in The Smart Property Investment Show to know more about his secrets to success in property and how you can cut through the noise and doom and gloom to build a strong portfolio regardless of market conditions.
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