I remember watching TV and there would be infomercials on Property with Carlton Sheets and Tom Wu. All they promised that Everyone in Property would be a Millionaire in short order. Today, courses promise the same. Leverage up to the hilt and you too will become a millionaire. I have seen this story played out several times already in my property career. Education is wonderful…however promising get rich quick with leverage is Toxic.

Recently there was a wealth seminar in Toronto.

We are once again (you’re going to see that phrase a lot) hovering in and around the all-time highs in the “markets in stocks and property.” And, once again, all the warning signs are coming into place that should be the tell-tale signs for prudence and caution. Here are three, but they’re a very big 3 when combined. Ready?

  1. Tony Robbins has authored another financial book.
  2. Suze Orman has once again reemerged to deliver her brand of financial advice.
  3. They’re both delivering their insights at a venue titled (wait for it) Real Estate Wealth Expo™, where you too can learn how to become a millionaire via real estate.

The truth nothing is safe. All we have to do is look at the £ which now has fluctuated to be worth what ever the “market” states it to be. Who would have thought Brexit would have caused the £ to move so much to the down side?

I am not a proponent of big leverage. I am not a course seller…I am not a mortgage broker. I am a proponent of compounding money over long periods of time. I strongly believe buying right…not chasing property deals…investing in Professional HMOs and Social HMOs with no or extremely low capital repayment.  Even if you “might” not time the property market correctly ( NO one can!!) time heals this and over time your increase in rents offset this. The issue comes when you can not make your mortgage payment or you have over leveraged. This seems to happen cycle after cycle.