How To Do Well in an Economic Downturn with a 21st Century Education
How to do well in an economic downturn and why those who invested into a financial education years ago are well positioned financially to profit from the Global Crisis.
Many uneducated investors may be asking how they can do well in a downturn.
However, 21st Century Members who have followed the fundamental financial strategies taught to them at 21st Century over the last decade would be outperforming those who have neglected a financial education.
Why?
It’s simple.
21st Century Members have been taught to use property as their cornerstone investment and the share market for cash flow generation in addition to property amongst other strategies.
Not to mention building online business and negotiating pay rises etc
Well, those who have invested in real estate over the last decade would not only have done well, but would be enjoying record low interest rates now and high rentals generating positive cash flow on their portfolio.
Plus where the share market has crashed up to 50% since its peak in November 2007, these property investors have been sitting on only a mild 3% decline in property values since the share market has crashed [except top end properties and holiday homes which have dropped more significantly.]
This isn’t to beat up on shares, but is why 21st Century teaches property as the cornerstone investment and using shares as an additional cashflow generator.
Thus those who did also use shares and insured their portfolios would also have been protected or the more sophisticated investors would have done nicely from the current volatility in the share market and the record high share renting premiums that have never been better in my investing career.
But what if the property market crashes?
There is some, such as Professor Keen of Sydney who are predicting Australian Property will crash up to 40%.
Personally professors are professors for a reason, they are good at theory but in this case that’s about it.
They don’t understand the fundamentals of property.
There is greater chance the property market will boom 20% then crash 40%.
I said this some time ago and now look what’s happening.
The property market in Australia hasn’t crashed and now the bottom end of the market is booming again.
This doesn’t mean it will remain this way, but let’s look at some facts.
1. Australian property leveled out in 2003, unlike US and UK which kept climbing to 2007. If ours had as well then yes we may have suffered a 20% decline almost as bad as UK and US but it didn’t
2. Our interest rates are at a 30 year low. If property was going to crash then why would it crash when it’s cheaper now to hold property than ever? I mean it would have crashed when interest rates were 8 plus % a year ago. Interest rates dropping to 5% doesn’t cause a property crash
3. Australian homes are too expensive. Maybe, but they have been for decades and kept going up. Plus, now Australian homes are the most affordable they have been in a decade, with homes becoming more affordable this doesn’t cause a property crash. It causes a possible property boom, as is now happening in the bottom end of the market.
4. But we are in a recession, thus property will crash and there will be increasing unemployment. Really, if that’s the case how come Australian Properties actually rose in the last two recessions, even when there was much higher unemployment then we have experienced yet? Plus in the 90/91 recession we had skyrocketing interest rates and unemployment and property still increased.
5. Banks have tightened lending. True
However, our banks are the strongest in the world and we didn’t do subprime lending like the US thus our default rates are low, plus banks are still lending even if it’s tighter.
6. Australia has an ever increasing population both now from migration at record levels and new births and we’ve had a construction industry not building enough new houses for years. Actually within 3 years we could have a massive 250,000 shortage of homes. Doesn’t sound like something that will cause houses to drop 40%.
Put it this way if Australian Property crashes 40% then it won’t be for the reasons the so called “experts” predict.
It will be from a total economic meltdown and even then property will most likely outperform.
Example
The world has been on the edge of total economic meltdown for some time now and what’s happened to the share market?
It’s crashed up to 50%
What’s happened to Australian Property in the same time?
It’s dropped 3%, except for the top end which continued to boom from 2003 to 2007 thus only retreated from the extra gains it made or areas that continued to boom since 2003/2004 have retreated some of their gains, ie Perth and some parts of Queensland in particular.
No one knows what the future holds, however the money investors have had to go somewhere. And those who invested the most into property in the past would have to be very happy now. It’s proven to be a good investment in good times and a solid performer in extremely tough times.
How much more could we ask of an investment, other than something totally guaranteed that you’ll never get, property has been the next best thing.
And combined with the knowledge of how to suck out cash from the share market right now a smart educated investor can do very nicely from the current economic meltdown.
21st Century’s Homestudy Membership is tailor made to teach you how to do all this and more and very successfully. With the right education you too can discover the fundamental strategies taught over the last decade and could be outperforming those who have neglected a financial education and others relied on the dangerous advice of Financial Planners trying to sell investment services. Why listen to someone who earns a commission on your investments rather than paying for an education and getting unbiased investment knowledge.
As a 21st Century Member you will have access to a variety of strategies, taught by specialists in the fields of Property and Share investing. The 21st Century Homestudy Program will show you how to best extract wealth from the current environment and how to combine property with cash flow strategies in the share market ideal for the market place right now.
Here’s some reasons why you shouldn’t delay in becoming a 21st Century Member…
| SUCCESS STORY TESTIMONIALS |
| I would like to say a big THANK YOU from my family and myself for all that you have done, still do and (no doubt) will continue to do. Your book (the first one) was only the second book that I had read in twenty years and when I had finished, it in less than two days, I sat down and cried knowing that I had just found HOPE. I knew if I had nothing but the shirt on my back everything was going to be all right from now on. Not just for me and my family but for those less fortunate and unable to help themselves as I knew I was about to acquire knowledge, guidance and strategies to enable me to do so. THANK YOU. Martyn Barnwell |
| Hi Jamie, It has been a year and half since we purchased your home study. When we watched the free DVD we were convinced that something needed to change in our lives and even though it seemed like a lot of money to spend at the time we thought doing nothing would cost us a lot more in the long run. Even though it was a struggle to pay for the home study it was the best money we have ever spent (EVER). We attended the four day seminar in November 2008 at Gold Coast – since then our lives have totally changed. There has been so many opportunities open to us that we didn’t even know existed. One of our biggest goals was to retire from a J.O.B. (Just On Broke). At age 28 and after a year and half of purchasing your home study we have both sacked our employees and have retired from a job!!! WOOO HOOO!!!!! I would not hesitate to recommend anyone purchase your home study – it has been the best investment we have made!!! I wanted to send this letter to say THANK YOU!!!!! If it wasn’t for you wanting to help others this would not be possible. You are one incredible person to dedicate your time to help other achieve their goals and to make the impossible possible. Words can’t describe the gratitude and appreciation we both feel towards what you have given to us. Thank you!!!! Dennis and Julie |
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| SUCCESS STORY TESTIMONIALS |
| Kia ora, I have used the home renovation strategy 2006-2007-in Dannevirke – creating more equity ie $80+k less 20% re: bank requirements. The home was originally valued at $70k & re-valued at $152k – it was run down & in need of renovating. After doing all the research about what jobs needed to be completed, I used $15k from bank account, a GE Finance card 100 days $10k interest free, visa card & mastercard. I ran-up $30k of debt on the 3 cards. I used my $15k to pay the builder, painter, plumber & electrician. Once the job was completed, I got the home re-valued. This generated a new valuation of $152k, creating $82k in equity. 20% was deducted as per bank requirements – $30,400 which left $121,600 minus original valuation $70k which left $51,000 equity. I repaid the $30k to the 3 credit cards. This left $21k in equity. With this equity I purchased another home in Te Karaka where I currently live. Althoug h the equity was not substantial I was able to renovate my Dannevirke home, pay-off my credit card debts & purchased another home in Te Karaka. Therefore, I have assets now worth approx $300k. After renovations I rented out my Dannevirke property. Prior to the interest rate increases I was $18.00 positively geared. Afterwards I became approx $130 negatively geared. Now that the interest rates are slowly coming down I am now approx $100 negatively geared. – you get no B.S. from me… Michael Haami |
| Since reading the book I got a line of credit on my House and started trading the stock market in blue Chips. To date since Late November 2008 I have made a profit in excess of $98,000. I would like to get more details on financing real estate to help my sons and daughter. I plan to come to the 4 day seminar in Melbourne . Any advice you can give me would be greatly appreciated. Kind Regards David Ross |
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| SUCCESS STORY TESTIMONIALS |
| 10 years ago I did the Homestudy Course that 21st Century had and with as little as $3,000 I started trading and in 2 months turned this into $20,000 then turned this $20,000 into $50,000 the next month. Now I pull out of the market each week using this $50,000 bank average $40,000. If I had a bank of $150,000 the weekly turnover would be in the vicinity of minimum $80,000 – 150,000 to a trader who has at least 2 -3 years experience. Just want to thank Jamie for awakening the Entrepreneur in me that was laying dormant before I did the Homestudy Course. Cheers Vern Taikato |
| Hi guys, I signed up with 21st century academy in 2007. It has been an amazing experience for me to be part of 21st Century and it has taken my life (in only 1.5 years) in so many great directions, meeting so many amazing and inspiring people and being able to help others to reach their goals. Thanks again for everything you offer and I hope that I will be able to join you in helping others create wealth in the near future. Kind regards Kevin St Mart |
Plus as a 21st Century 5 Year Member, you will be able to take advantage of our 4 Day Education For Life Events, to be updated with the current economic environment and how to navigate successfully through these very interesting times. The live 4 Day event accelerates what is taught in the 21st Century Homestudy Program.
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OR
Please contact our Member Support Team:
Email: membersupport@21stca.com.au
Phone: 1800 999 270
Yours Sincerely,
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21st Century Education
www.4daybonus.com
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