Where is the Smart Money Going?

Discussion in 'Property Market Economics' started by MTR, 17th Aug, 2016.

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  1. MTR

    MTR Well-Known Member Premium Member

    19th Jun, 2015
    My World
    M Yardney comments

    The savvy investors I’ve been speaking with have been reviewing their current financial position and refinancing so they can build up their war chests and their financial buffers.

    Over the last year or so they’ve been selling underperforming assets, freeing up the cash and taken strategic positions in the market to take advantage of the last stage of this property cycle.

    They’re buying properties in high growth locations – one’s with the right demographic of people with rising disposable income and capital city locations with multiple growth drivers likely to cause continuing capital growth .

    And then they don’t wait for the market to do the heavy lifting.

    Instead they “manufacture” capital growth through property developments or renovations.

    O.K. here’s my next observation on Smart Money…

    Smart Money intelligently deploys itself for maximum effect
    Whether this be by buying solid assets with above average rates of capital growth, or negotiating purchases on favourable terms, or “manufacturing” capital growth and rental returns through renovations or development or simply growing an asset that you already own for maximum effect – Smart Money gets more done with less.

    Which leads to the final insight I’ve observed in my study of Smart Money.

    Smart Money networks with other Smart Money
    Here’s another way of saying this:

    Your peer group just may have the greatest impact on your financial success of any single variable!

    Who are your current peers?

    Are they stressed financially?

    Are they on track to reach financial independence?

    If the answer is no, then you need to do something about it.

    TadhgMor and andrew_t like this.