Why time is more important than timing

The world's most successful investor, Warren Buffet, said it best.  "Wealth is the transfer of money from the impatient to the patient".  When it comes to creating wealth, this is absolutely true.

According to RP Data, of all the properties sold across Australia during the June 2013 quarter, 92.8% sold for a profit (7.2% sold for a loss).  Such properties were purchased prior to January 2008.

RP Data went on to say that all properties sold in the same period, of those properties that were purchased post January 2008, only 77.8% sold for a profit (22.2% sold for a loss).

These stats are based on actual data and demonstrates that the longer you hold onto your property assets, the more wealth you'll create over time.

Residential property in Australia is absolutely important for many of us and here's why.  Our wealth holdings in Australia according to RP Data is as follows (at time of writing):

-    $5.0 Trillion in Residential real estate

-    $1.62 Trillion in Superannuation (SMSF's represent $505.5 Billion)

-    $1.5 Trillion Australian listed stocks

-    $0.7 Trillion Commercial real estate

I have seen many times where people buy a property and sell it for a quick profit.  Whilst this can make you (some) money, there is nothing more powerful than 'time' when it comes to creating wealth through property investments.

The key reason for this is known as the law of compounding returns.  i.e. the annual growth you make on your property asset is compounding year on year.

In closing, I would like to leave you with a very powerful message that will help you create a multi million dollar property portfolio, as it has for me; don't wait to buy property, but buy property and wait.

I hope you find the above thought provoking and please feel free to share this newsletter with your friends and family.

If we can be of any assistance with any lending requirements or advice, please feel free to drop us a line at anytime.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.