I just had the pleasure of listening to leading Australian speaker Doctor Adam Fraser give a profound insight into the psychology of performance.
One thing he said that resonated with me both personally and professionally was to ‘live above the chaos’. In other words, focus more on what you can control (be it personal or professional) and less on the chaotic external noise that you can’t.
Now, it shouldn’t surprise you that the investment landscape has been somewhat chaotic over the last few weeks: APRA’s strengthening of a bank’s capital requirements spurred lenders to increase rates on investment lending, in some cases by 0.47 per cent. The SMSF industry too is amid change, with maximum loan to valuation ratios declining and some lenders exiting the space entirely.
Blue Wealth has long advocated a responsible lending and investment philosophy and we support regulatory changes that strengthen the industry and ensure clients are supported and protected. Anyone who’s been to a meeting with a Blue Wealth investment specialist will know that the ability to hold an asset in a changing investment landscape is tested on many levels; be it an environment of increasing interest rates, declining rental yields or dampened growth rates.
Recent changes shouldn’t be seen as road blocks to your investment aspirations. As I touched on in last week’s blog post property investing is a long term strategy to wealth creation, and through the years you’ll encounter a number of things that may lead you to question your investment decisions. Just think about how the world has changed over the past two decades: recessions, wars, mining slow downs, political coups d’etat, nuclear deals and the collapse of some of the largest financial institutions in the world. A century’s worth of chaos, packed into two decades.
So how do you live above the chaos? Get educated, have courage and invest with the support of Blue Wealth.