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I was on Twitter the other day simply talking to some people about property. If you want
more information on the tweeter marketing that I do then just check out episode 79 by
going to OnProperty.com.au/79. I was on tweeter talking to people about investments, I was
just finding people who were talking about property, just giving some encouragement and
there was someone on there who was asking the question "should I buy an investment property
or go on a holiday?" And I thought that is a great question to ask and I bet that there
are a lot of people out there who are wondering whether they should buy an investment property
or whether they should go on a holiday? It's not an easy decision to make so I wanted to
create a video again with some ideas to help you make this decision.
Hi I'm Ryan McLean from On Property- your daily dose of property education and inspiration.
You can get new videos, podcast and articles seven days a week by going to the blog OnProperty.com.au.
So should you buy an investment property or go on a holiday? Go either on local holiday
or go overseas? Definitely a good question to ask. The studies have shown that when choosing
between items and experiences, experience adds to our long-term happiness more than
items do. These studies that have been done in psychological studies show that whether
if you want to buy a car or you want to go on a holiday almost always going on a holiday
will make you happier as a person. And one of the reasons for that is that overtime our
memory changes from short-term to long-term memory and the longer that it has been, the
more we remove the negative experiences from our memory and we just remember the positive
experiences. So if you go back and try and remember a holiday that you went on that you
really enjoyed I bet you would struggle to find out to remember bad things about that
holiday. That's just that most of our minds work is that we remember the good stuff and
overtime we tend to delete that bad things. I'm just thinking now, me and my wife had
this horrible holiday when we went to New Zealand and I remember it was horrible but
I can't remember anything specific about that holiday that was horrible. Everything that
I looked back on, the cold nights in a wicked camper van and all of that sort of stuff now
just seems like a great experience. And so I can't remember negatives as well. So, that's
proof in the putting that it actually happened. That's something to consider, the fact that
when we choose experiences over stuff it is going to lead to our long-term happiness.
But obviously you need to think about delayed gratification as well. Because, maybe you
take this holiday now and don't buy a property but that means financially in the future you're
going to be more financially stressed, you are going to have to work harder because you
took the opportunity now rather than having delayed gratification and choosing to invest
in your portfolio first so that could then have fun holidays in the future.
And that leads me to a question that I want to get you to ask yourself which is what I
talked about in the last episode which is whether you should buy property or have a
baby and that is, why not do both? We can find ways to do both. And I get this idea
from Robert Kiyosaki who is the author of 'Rich dad, poor dad' and his Rich Dad banned
him from saying 'I can't' or 'I can't afford it' and he said "do not say that to yourself,
do not say I can't afford it, don't say to yourself I can't afford to do both, say how
can I afford to do both." And maybe the reality is that you can't do both right now in the
time frame that you want to but you might be able to find a way to do both within a
reasonable time frame. Maybe you could purchase a property that pays
for itself and that funds your trip. So maybe you invest in a positive cash flow property
which I love to talk about. One that spins off extra cash flow, maybe that extra cash
flow could be used to go towards paying for your holiday or maybe you could purchase a
property and do a renovation or purchase a property below market value so you've got
instant equity. And maybe you could access that in 12 months time or whatever time frame
and then you something that equity for personal reasons to go on holiday.
So this is a couple ideas or ways that you could do both. But great question to ask which
should you do. There is obviously benefits to going on a holiday and that experience
is going to make you happier over the long term but then there's also the benefit of
getting your own property and starting a portfolio because, as it grows in value and you continue
to invest, those properties may be able to find future adventures and overseas travel
and maybe instead of backpacking you can go around in five star luxury. So if you want
more videos, articles and podcast like this one, published seven days a week, head over
to the blog at OnProperty.com.au and remember- your long-term success only happens through
dedicated and consistent daily actions. Until tomorrow, stay positive!