Or how I smiled while losing $10,000. Photo by Mohamed Nohassi on Unsplash. How can you lose money and still feel like a winner? When you are really in control of your feelings and you have the right plans and motivations, you don’t react so drastically to failure. So, how do you fight failure? You fight… [Continue Reading]
Lesson 1: The 4 strategies to Wealth creation
There are basically 4 ways to build wealth through property. They are through:
1. Cash-flow – income from property rentals.
2. Appreciation – income from increased value.
3. Amortization – value creation through renter’s pay-down of your loan.
4. Tax Savings – savings through incentives and write-offs
The simple way to go from passive investor to active investor is by the following 5 steps.
1. Know your area– Be an expert on your area and track the performers.
2. Know price – Buy the stocks you know when they are undervalue and sell when they are overvalue.
3. Be aware of costs – Remember the more you trade the more you pay, but don’t be afraid to make a profit.
4. Know Opportunity cost – Be aware of the different rates of return and also balance risk against potential reward.
5. Have a strategy to scale up – You’ve been learning the game at this level, what’s the next level up?