In this episodes Kevin talks about how to make money with Property Club and explains his amazing “banana story”!
Do you wanna ask Kevin a question? Feel free to submit your question in one of these 3 ways:
1. Twitter by using Tweet: #askKevinYoung
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Now have a look to the Ask Kevin Young Episode 4:
G’Day I’m Kevin Young, I’m Australia’s most successful property investor, but I started out poor. And I’m constantly being asked “How do you do it? How do you get there?” You ask me, I’ll give you the solutions and between us we’ll make you wealthy.
Kate asks: “How do I make money?”
Well, I go bananas. Come in and I’ll show you how to make money. I don’t know whether you heard that or not, but my good mate Costa has just explained they’ve gone from over $2.00 to $3.49 and they’re $5.00 in some places, and why? Because the supply has been damaged by disease up North. So once you take some bananas away and you have less bananas in the store, people want the bananas, the price goes up. So if more and more bananas are hurt by that blight, like a cyclone goes through, Costa will take this up to $17.00. It’s called the law of supply and demand.
So what we try to do in the club is look where there’s a shortage of bananas, or a shortage of property. But you tell it pretty easy because the tenants will bid the rent up, just the same as the shoppers will bid this price up if Costa can’t get more and more bananas. There’ll only be a few bananas, a lot of people want them, up will go the price. So, it’s called the law of supply and demand setting the price. So we look for areas that are under-supplied with bananas or property and then move in early. The papers don’t know about it, the sledge gurus don’t know about it. People are just … statisticians don’t know about, they can only look backwards. So we have to look forward using the supply and demand.
So, how to make money? Go bananas! And get in before the supply dwindles because you’ll be paying more and more and more for them. There could be a cyclone coming, there could be a blight coming. And that’s what we want with property, where there’s no supply. Remember the Chinese? They’re buying where there’s lots of supply. We did that last week. You’re not going to go there. Banana’s lovely.