There are many reasons why investors favour real estate over other asset classes and the ease of starting is one of those reasons.
Compared to shares or business, real estate presents an opportunity that is relatively easy to get started with limited knowledge or skillset. While wealth creation through developing a business or mastering the stock market or cryptocurrency market can be highly lucrative, it also requires a skill-set that takes time to master as well as ongoing education and self improvement to keep on top of transient markets.
The stock market requires a professional approach and dedicated commitment to make wise decisions. It also requires research and knowledge of historical trends, understanding the underlying technical and fundamental analysis and the psychology behind what drives the trends. The stock market is a minus sum game where only the most skilled and most emotionally unattached people gain an edge and win more than they lose. As money is our second biggest subconscious “hot button” (sex is the first), this type of self mastery is difficult to achieve in a highly volatile market and that is why we often see trading bots exceedingly outperforming humans with emotions. In fact, investing in or developing a trading robot may be easier than the self mastery required to trade the stock market.
The cryptocurrency market similarly requires a professional approach, knowledge, keeping on top of a transient market and also knowledge of the complexities of changing legislation in a relatively new asset class.
Investing in or building businesses is one of the most lucrative achievements but it is more difficult as it requires a long-term approach and an acquired skill set. In many ways, business is even harder than the stock market because it relies not only on understanding the psychology of the masses, but also in having the skills to deal with it and to influence it in real-life on a daily basis. Business is about creating and exchanging value for other people, and the more people you create value for, the bigger the business. Being an entrepreneur can certainly be lucrative, but it also requires a major commitment to personal development, the building of networks, and the creation of products and services that are up-to-date with current market demands. Entrepreneurship is a case of survival of the fittest, and those who are not able to adapt quickly enough to changing market and product demands will become extinct as new trendier products and services enter the market.
Property, on the other hand, is simple, in comparison to other asset classes, there is limited dedication required to acquiring complex skills. Very simply, all it takes to acquire property is a decision to acquire property. Researching property to purchase and conducting due diligence is relatively simple as most of this can be done online for free or by attending weekend open inspections. No specialist knowledge or training is required to research property to purchase or to conduct due diligence on property. Anyone can purchase property – you do not have to be a particular type of person with a particular mindset. If you are able to get finance you can do it. I purchased my first investment property at the age of 19 (with no people or business skills), and yet I did not have the skills or mindset to be an entrepreneur or to develop viable businesses until I was over 40. Indeed, most of my attempts at developing businesses in my 20s and 30s were learning experiences which contributed to my ongoing education to build great businesses later on in my life.
About Xenia and ALEXA Real Estate
Xenia is the Principal and CEO of Alexa Real Estate www.alexarealestate.com.au. Xenia developed alexa real estate from concept in 2006 and it has now expanded to a rent roll of over 300 properties and 10 staff members and the company enjoys massive growth every year due to a strong focus on specialisation and solving difficult, specialised property management problems
See Xenia’s real estate blog here: http://blog.alexarealestate.com.au/
Xenia is also an entrepreneur, has developed several businesses in the areas of real estate and self development and is married with 3 children. Xenia loves to share her passion through writing and has written books on in the areas of millionaire mindset, emotional resilience and human consciousness. She has appeared as a keynote speaker on many stages around Australia and overseas including sharing a stage with Bob Proctor at a wealth creation conference in Europe.
Xenia’s books:
Don’t believe everything you think or feel: https://www.amazon.com/Dont-Believe-Everything-THINK-Feel/dp/1507594895
Your Inner Journey to Wealth:
https://www.angusrobertson.com.au/books/your-inner-journey-to-wealth-xenia-ioannou/p/9781456854294?gclid=EAIaIQobChMI3oeky-qN2gIVGiUrCh0l1woWEAYYASABEgLaLfD_BwE
Prior to discovering her gift in developing businesses Xenia was a medical research scientist obtaining a PhD from Flinders medical centre followed by a 3 year post doctoral fellowship at the university of Saskatchewan, Vaccine and Infectious Disease Organisation in Canada. During her post doctoral years Xenia published 8 medical research papers in top medical journals and travelled around Canada and the USA speaking at scientific conferences about her, now patented, vaccines and research.
Other social media pages:
FB: https://www.facebook.com/xenia.ioannou.33
LinkedIn: https://www.linkedin.com/in/xenia-ioannou-290898143/
Twitter: https://twitter.com/XeniaIoannou
Blog: http://blog.alexarealestate.com.au/