Articles

More is lost by indecision, than poor decision.

I have never met someone who has bought a blue-chip property years ago and now regrets it. The only regret they usually have, is that they didn’t start sooner and buy earlier, when they had the opportunity.

The enemy of success and achieving your goals and dreams is usually procrastination.

People who procrastinate very often usually have a streak of perfectionism in them. They are waiting for all the stars to align and everything to be in perfect condition before they commence, and we all know that nothing is ever 100% perfect.

Waiting for the perfect time to invest and for finance conditions to be perfect, and then finding time in your busy lives to fully understand the market conditions and develop a successful purchasing strategy generally results in people just delaying what they really want to do.

This is the most costly mistake people ever make in their property investing. Lost Capital Growth is the biggest loss in most people’s portfolio.

Generally before we make a major purchasing decision, it is common to want to do some research first. Reading the newspaper, and listening to the news is destined to lead us confused and worried as the news is designed to shock us. If a plane crashes, we definitely hear about it in the news, but we never hear about the 70,000 planes that safely land each and every day.

If we see the title of a news article reading “property generally goes up in the medium to long term” we probably wouldn’t bother reading it as it actually sounds quite boring.

However an article saying “Banks Restricting Funds to Borrowers” or “ Top Economists Predicting a Property Bubble is Forming” or “Auction Clearance Rates Plummeting” often leave us second-guessing our choice and decision.
Advice from some well-meaning but ill-informed friends or family often leave us in a similar negative mindset.
Our brains are hard-wired for survival. The emotion for loss is so much more amplified than the emotion for gain.

That is the reason why most of this ‘noise‘ tends to affect us so much and leave us so confused.

The emotion for losing $50,000 is far stronger than making $100,000.
Understanding how our brains focus on the danger and being able to logically overcome that is the formula for success in any pursuit, especially property investing.

Most people who buy the family home do extremely well out of their property investment, although the purchase was initially not intended to be an investment, but simply somewhere nice to live.
Decades later, buyers very often wish they had bought more property when they had the opportunity as they have the benefit of hindsight in seeing how much their family home has grown by.
The formula for any success is generally very simple although rarely easy.

Break your end goal down into lots of small little goals and all of a sudden the tasks begin to seem so much easier.

The next most important task is to surround yourself with the right people and engage a team of professionals to help you.

None of us are experts at everything, and that is why having a team including an accountant, a mortgage broker, a solicitor and a Buyer’s Agent all working to help you achieve your end goal is paramount to your success.

It really helps if the important members of your team understand this psychology of the process as much as they understand the technical aspects of their job.

If your chosen professionals have achieved success on their own, it shows that they have overcome these challenges personally, and a better suited to helping you guide through these similar challenges you are now facing.