Four keys to succeeding in any economy

I’ve decided that I’m not going to participate in the property downturn, and I would like you to join me.

By now you are probably sick of hearing about the economic woes of the world and how Australia’s economy has now hit some speed bumps. Many of the messages we are getting tend to scare us, while at the same time completely ignoring the solutions on which we need to focus on to move forward.

Instead today I’m going to share with you four keys to succeed in any economy.

1. Take care of “your” economy.

Firstly you need to separate “the economy” from “your economy.” “The” economy is what is happening in the outside world. “Your” economy is what you think, how you feel and what you do.

While you have no control of the world economy, you do have responsibility for your own personal actions and prosperity. So focus internally.

Think about it – if I told you there would never be another property downturn or another recession, would you believe me?

So it should come as no surprise that we regularly have property downturns, that our property markets cycle has booms and busts and that most countries have a recession every seven to 10 years.

To stand out from the crowd you will firstly need to acknowledge that the economy and our property markets are cyclical. They have always been like that and will always be like that. Next you will have to work on your own economy.

2. Take stock.

Where is your focus? What are your beliefs? If you constantly focus on all the bad news and the difficult times, how does that make you feel?

As a property investor you need to focus on the opportunities around you because you will find what you look for. Your outside world is a reflection of your inside world. What you see is what you look for.

A great example of this was a few years ago when I took my son Harrison for a driving lesson. He was out looking at new cars and as we drove down the street he said “Hey Dad, look at the Corollas on the streets.”

Interestingly I looked around and said, “Where? All I can see is Mercedes – look at all the Mercedes on the streets.”

What you look for is what you see. If you look for all the bad news you’ll find it. On the other hand, if you look for opportunities, you will find them. And boy, are there opportunities out there at present.

Interest rates are still reasonable and are likely to stay at these levels for a while. Residential rents are rising, which means that yields for investors are on the way up and the out-of-pocket expenses for owning a good investment property will decrease a bit.

With uncertainty about interest rates, the carbon tax, our local economy and overseas countries going belly up, many home owners and investors are sitting on the sidelines, meaning there is less competition for all the good properties that are out there.

If you focus on the bad times, your concerns about a downturn will become self-fulfilling. When you focus on the negatives, it’s hard to progress and prosper. Your negative beliefs will bring about negative behavior, which will limit your actions and limit your results.

But when you recognise that the current market presents you with a smorgasbord of opportunities you can step up and take advantage of them.

3. Take responsibility.

The value of your property portfolio may have dropped or you may have lost money in your superannuation, but your net worth is not your true worth. You are your greatest asset. Not a property or a stock.

Too many people are handing over responsibility of their own personnel economy to somebody else. You must take responsibility for your investment business and becoming financially fluent. Educate yourself; learn the rules of money for the new financial era and develop a supportive network of peers and mentors.

Find out who has already achieved what you want to achieve and then get the knowledge that you need to take advantage of the tremendous opportunities that surround us.

4. Take action.

In the past those who have prospered during difficult times have had specific knowledge about how to take advantage of the economic conditions and then they took effective action.

The same will happen again this time round. Currently the majority of Australians are sitting it out, saying things like “I don’t need to take action now – I’m scared.” At the same time a small group of people are taking action. That’s why the rich and financially fluent are getting richer. Nobody has ever gotten rich by doing nothing.

Currently some property investors are becoming wealthier than ever because they own the right type of assets and are taking advantage of some of the best deals available in their lifetimes. Others are just sitting it out hoping that it’s going to work out.

Which side are you on?

It’s time to increase your financial literacy by immersing yourself in the tools and knowledge to help you move forward. It’s time to take responsibility and regain control.

Let’s face it: unless you do it yourself, no rescue plan is being prepared for you. The government is not coming to bail you out, like some governments have done to their banks or certain large companies.

The more you focus on fear, the more afraid you become. The more you focus on obstacles the larger they get. And the more you focus on the doom and gloom headlines, the less time energy and faith you will have to focus on building your own wealth and prosperity.

So join me and many other successful property investors and become someone who sees opportunities where others see problems. Become someone who seeks growth when others expect collapse. And become someone who sees success when others see failure. I’m not going to participate in the downturn!

Michael Yardney is the director of Metropole Property Investment Strategists , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the Property Investment Update blog.