Journal

I often see people around me rushing to buy their first investment property without thinking it through. It baffles me that someone could spend $400k, $500k or $600k on something without thoroughly thinking it through first. Here are some tips I would share with anyone looking to buy their first investment.

Lately I’ve been re-reading the Rich Dad Poor Dad series of books by Robert Kiyosaki. I read them a good seven years ago, so it’s been really refreshing to go through Rich Dad’s principals of investing again, especially as my mindset has been completely re-written from seven years ago when I was just starting out. Even if you don’t call yourself a property investor (yet!), I really recommend the first two books at a minimum – Rich Dad Poor Dad and The Cashflow Quadrant. It talks about the importance of understanding financial statements and what the differences between Employees, Self-employees, Business owners and Investors are.

In the third book, Rich Dad’s Guide to Investing, he talks about some really fundamental points that totally should have made it into the first book, and I wanted to just outline how I have interpreted them here.