A Finance blog by Paul Bennion.
Investing in property is now a favoured path for a growing number of Australians to create wealth and become millionaires, says DEPPRO Managing Director, Paul Bennion.
According to Bennion, government figures show that around one in five households own another property other than their own home.
“For these households, their equity in other property ($437,000) accounted for 31% of their average net worth ($1,544,000). When averaged across all Australian households, other property wealth ($100,000) represented 14% of average household wealth,” he said.
“The reality is that most people dream of becoming a millionaire and over recent years there has been an increasing number of people who have become millionaires through property investment.”
Bennion said that a rising number of DEPPRO’s clients own more than five investment properties and are building a successful property portfolio to fund their retirement.
“These people have become property millionaires by adopting a professional approach to investing, whether it is by carefully researching the market, or through ensuring they claim their full investment property tax entitlements. They did not achieve their success through luck,” he said.
Bennion’s sentiments are supported by findings from one of the largest studies of self-made millionaires, which found that creating wealth through investing clearly comes from developing a very positive state of mind and professional approach to investing.
The US-based study of more than 1,000 millionaires found that many participants shared common attributes and motivations on their journey to becoming a self-made millionaire:
Published in the book, “The Millionaire Mind” by Dr Thomas J Stanley, some of these qualities and characteristics included:
- Not following the crowd
- Preparing and planning to succeed
- Seeing economic opportunity that others ignored and having a willingness to take financial risk, given the promise of a good return
- Buying homes when others are selling
- Spending time planning investments and consulting with tax advisors
- Focussing energy to maximise the return on effort; and
- Thinking of success, not failure.