The thing about all of those things that guarantee ‘quick wins’ and ‘quick fixes’ is that they almost always work fast…until they don’t.
Those diets that promise you’ll lose 5kg in two weeks, only to gain it all back again a week later. Or those suuuuper cheap DIY lash studios that seem like a great work-around, but fall out after 2 days.
Anything that sounds too good to be true? Usually it is. And the same goes for those ‘get-rich-quick’ approaches in property investment.
And we know – the shortcuts and quick wins can be super tempting, but true, sustainable wealth actually comes from playing the long game (sorry!). It’s all about consistency, patience and being super solid in your strategy to make the right decisions at the right time.
Still not convinced? Here are 5 reasons why taking a long-term approach will always bring you out on top:
- Property cycles and patience are a great mix
The one thing we know about the property market is that it works in cycles. People that have a short-term outlook will – most of the time, panic and sell at any whiff of a downturn, which means they miss out on what could’ve been when the market cycles again and the downturn flips up.
The difference with a long-term outlook? Historically we’ve seen that despite these cycles, over time the market almost always trends upwards. What does this mean? It means that people who are willing to be patient and stick it out for the long-haul will see their property value increase, no matter how much the market swings and changes in the short-term. - It’s all about compounding growth
The thing about property is that you’re unlikely to see results straight away. And this can feel a bit defeating right? But this is where it becomes important to have faith in your strategy, and trust that time will do its thing. Because the reality is – the longer you stay in the market, the greater the the rewards will be. This is all thanks to a little concept called compounding growth. Year after year, your property will see small increases in value, and if you’re holding onto it for 10, 15 years – the capital growth increase will be well worth the wait. - Rental returns keep going up
The great thing about a quality property in a good location is that not only will it increase in value over time, but it’s also likely to generate higher rental returns as the years go on too. Things like population growth, inflation, and rising demand for rental properties (especially in Australia) all mean that more people are looking for rentals, and the price of these rentals are only going up.
This is a win for people who are willing to stay in it for the long-term, because it means that the longer you hold onto your property, the better your cash flow is going to get – and this can be leveraged to help you build your portfolio to be bigger and better. People with a short-term outlook often miss out on these benefits. - Tax benefits add up over time
If you want to cash in on those tax benefits, sticking it out over the long-term is where it’s at. Things like depreciation, interest deductions and negative gearing benefits can give you that little bit of financial relief over time, making it easier and more affordable to hold on to your investment. Owning your property for a long time also means you can reduce your capital-gains tax when you do eventually sell. - Less of that pesky maintenance
The problem with flipping a property with a short-term outlook is that there’s a ton of maintenance and monitoring that you have to do day-to-day. Buying property with a long-term strategy means you can let time do its work, and put your energy into all the other things that are important to you. Sure, there’s still some management that goes into owning property, but compared to other strategies, holding on to your property for a long time is a very low-maintenance way to build wealth in the background – and who wouldn’t want that?
When it comes to property investment, patience isn’t just a desirable trait – it is THE key to building lasting and tangible success. The one thing that all of the investors with TRUE wealth have in common? They’re not in it for the quick wins. They have a solid, reliable strategy that lets time do the work, and the patience to let everything play out in alignment with that.
So where do you go from here? The first step is to make sure you have a strategy in place that works with your goals, your unique situation and your financial position. The second step is to trust that the longer you wait, the bigger the wins will be.
Our ultimate goal is to make wealth building and investing as EASY as possible for women, so if you need help crafting a long-term strategy or identifying the best way forward for you, reach out here and let’s have a chat.
It’s a marathon, not a sprint – but we’re here to help you every step of the way.