Designer handbags, glittering diamonds, the social world we live in is littered with visions of seemingly easy, untapped wealth. Social media images, influencers, perception that turns many people’s thoughts into thinking all they see is actual reality confuses and fools many. When quizzed about how these possessions and grandeur came about answers of company start-ups instantly reaching millions of dollars, unlimited users and subscribers and funding that seems to just roll in the door are often talked about along with complex business models and even more complex business structures. Business and money really have become a complicated collective in this modern world.
What leaves me bemused however is the facts don’t agree, that is, how the facts can be so different to what you see and read mostly on social media.
When analysing the 2019 BRW Rich list figures we see that property remains the #1 vehicle by which fortunes are made with no less than 63 of the top 200 richest people in Australia choosing property as their investment choice.
Furthermore, of the 20% richest households in Australia, this is how their wealth is made up –
Family home 34%, Superannuation 18%, Property investment 17% and other 13%. When the superannuation and other categories are divided equally, we are left with 61% of the wealth sitting in property and 11% in shares. 61% property, 11% shares. These simple and actual facts require little further analysis or comment.
No matter what you think or feel, facts prove nothing comes close to property when building wealth, it’s that simple, it’s proven over and over. But, unfortunately in today’s world complexity sells to many. There is always something else better right?
In the words of one of the world’s greatest economists Ernest Schumacher – “Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius – and a lot of courage – to move in the opposite direction”.
Remove yourself from the noise, keep it simple, look at the winners and the facts and at whatever level you can, start or continue investing in property. You must put up a sail to catch the wind. Doing so and buying property now will put you on the path to becoming over time part of the top end of town and, it really really is that simple.