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Fear is a powerful concept! It has ruled the lives of human beings ever since there were human beings. It was used by adults to scare children into doing the right thing. “Don’t or the bogey man will get you.”
It has been used by religious leaders who warned that bad people would go to hell and burn there forever. Heaven forbid those who indulged in the sins of the flesh!
Politicians also use the tool of fear to keep themselves in power. We’ve had many wars over the last century and given politicians the power, the weapons, anything they asked, as long as they promised to keep us safe. Some wars perhaps were real, but others? When real wars end, politicians have been accused of making some up, or at least playing on our fears of what might be. There was the Cold War and now we have the War on Terror, but let’s not get too political.
We also experience a sense of fear when we step outside our comfort zones. This fear dictates our decision making. It’s scary when we don’t have some control and know what’s going on.
Debt is a fearful thing for the first time investor, even when we have done the reading, checked the facts, listened to advice and attended seminars. It’s scary to get that first big loan. The fear can be overwhelming. Many want to do it but can’t overcome their fear.
For Sue and I our first big investment loan was for a holiday unit at Huskisson on the South Coast of NSW. It was December 1998. We held our breath and we did it! We borrowed the princely sum of $84,000 from The Teacher’s Credit Union. We didn’t sleep much that week. It was a principal and interest loan, so the repayments looked massive. What foolish thing had we done? It would take us forever to pay off! Our blood pressure shot up.
It wasn’t so foolish in the end. By 2004 this small two bedroom unit had nearly trebled in value! The only foolish thing is that we sold it and handed lots of our equity over to other people, but that’s another story. Since then we have bought other properties and watched, fascinated, as they grew in value.
Each purchase has taken courage to overcome the fear of debt and making a foolish decision, but I must also say that each time it gets that bit easier. Last year we bought two properties and now in 2006, are in the process of getting another. Our last acquisition, in Brisbane, was with The Investor’s Club. So is the one in progress, in Darwin.
Good debt is the way to a wealthy future, but first deal with your fear!
Ron Gough
Support Member, NSW
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