Hi Again,

This month is all about tax and keeping an eye and ear out on the market, it's been very volatile and unpredictable. With talks about the property market being too hot and too cold and the stock market moving up one day and down the next, it's very hard to make a sound decision on what is a good place to invest your money. I've decided to share with you a secret that I discovered during one of the many seminars that i've attended in the past.

Hopefully it will provide the concrete for the foundation to your property investing strategy. When people talk about property, one of the first things to cross a person's mind is "location, location, location". Where is the best and right place to buy their next property? There is a very simple answer to this question and it makes sense because of the simple rule of supply and demand.

• supply demand outcome
• high high price equilibrium (steady to strong market)
• high low falling prices (weak market)
• low high raising prices (strong market)
• low low price equilibrium (steady to weak market)

As property investors, we cannot control supply or demand, however we can choose a location to buy a property which will have the forces of supply and demand in our favour. For this to happen we need to understand the forces driving the supply and demand. To do this we'll need to look at the location location location of properties in an area. Most major cities are built with a central business district in the centre, radiating outwards in a circular shape forming the outer city, the inner suburbs and the outer suburbs. For example, if a city had the following composition:

• inner city is up to 2km from the CBD
• outer city is 2-5km from the CBD
• inner suburbs is 5-15km from the CBD
• outer suburbs is 15-30km from the CBD

Properties are built on land, and land is determine by the area available

• inner cities are made up of around 12.57km^2 of land
• outer cities are made up of around 65.97km^2 of land
• inner suburbs are made up of around 628.32km^2 of land
• outer suburbs are made up of around 2,120.57km^2 of land

To generalise, most infrastructures are built to service people to move them from the outer area to the CBD area for work and services. Hence, people are more likely to want to move as close to the CBD as financially possible, either renting or buying. i.e. the demand for property within the inner suburbs will generally be stronger than the outer suburbs, also the supply of new land within the inner suburbs will generally be a lot less than the outer suburbs as land is very scarce in the inner areas.

This simply means if an inner area property were to come up on the market for sale there would be approximately 2-3 times as many people from the outer areas who would want to upgrade and move in to occupy the property. Although every city is a different size, the driver of the supply and demand forces properties to remain the same throughout the world. So if you are looking to buy a property in an brand new development with vast empty land around you, you might want to stop and think about the forces of supply and demand.

As a property investor, you want to buy properties that will be in your favour over the next 10-20 years or more. As the population grows, a city will expand and create many opportunities. A once unpopular inner area will turn out to be the next popular hot spot. If you're still thinking about location location location, then you'll want to be shopping in the inner areas as both the forces of supply and demand are in your favour in the long run.

Until next time,

Yong-Long

PS. Come join our Facebook Group and connect with other like-minded people in the world! 

Today's success tip comes from Ben Fewtrell.

Ben co-owns one of the largest business coaching firms in Australia and has personally coached over 100 businesses. He is a regular contributor to several national business publications and is involved in other business interests that operate without his day-to-day involvement.

What do you think are the essential qualities or attributes of a great business leader?

Inspiration - a great leader inspires their team, their customers and the marketplace.

Vision - a great leader has a crystal clear vision. If you don't have a destination you will never arrive, and you will never be able to lead your team - you will be on the road to nowhere!

Strength - a great leader needs the strength to climb the toughest of obstacles. Your team expect it of you. Sometimes that means making the tough decisions no one else wants to make. Imagine you were the CEO of a major bank when ATMs were introduced. You would have had to make the decision to shut down branches, and put people out of work. As tough as it was, the banks are now reporting huge profits!

Optimism - in business there are no failures. Whenever I make a mistake, I make sure I learn something. A couple of years ago I decided to start an international business, but the only thing I did successfully was lose a lot of money. I have met many people who would call this a failure. In my eyes this was a major lesson. To be a great leader you have to make it okay to make a mistake, as long as something is learnt.

Delegation, not abdication - a great leader will master the art of delegation and leverage through people, but will always remain responsible for the outcome.

This website contains even more great tips from Ben Fewtrell.


CLICK HERE TO READ MORE NOW

Check out the Entrepreneur Business School Masters Program!

The Wealth Dynamics Masters Program will take you from your magical experience at the Wealth Dynamics Masters Program to a clear plan covering every element of the seven vehicle values. You will leave with a full and comprehensive business plan covering every element of your business concept, a priority plan and a step-by-step strategy to ensure your wealth is not an accident.

This program is tailored for 12 people who over 5 days present their plan to our mentor panel for their advice and evaluation.

Click here to find out more about the Wealth Dynamics Masters Program.

IF YOU WANT to:

• Completely transform your career and fully actualise your natural gifts and potential, this is the program for you.
• Completely transform your finances and have the freedom to live the life you desire, this is the program for you.
• Completely transform your physical health, this is the program for you.
• Completely transform your life emotionally and delight in greater peace and harmony, this is the program for you.
• Enthusiastically and playfully enjoy the full richness of life, this is the program for you. But that's only a fraction of the transformational and life changing discoveries you will make over these 3 days!

"Wealth Dynamics is the only personality test that tells you exactly what strategy you should follow to build wealth."

The real trick to building wealth is to maximise your natural strengths and the things you feel are fun. That way you will always have the energy and the drive to stick through the challenges.

To find out more about the Wealth Dynamics Profile Test, go to Profile Test in the Wealth Dynamics section of Your Success Club.