Property Investing 101: Money Goes Down the Drain As Fear Increases
Remember Julia Roberts in Pretty Woman saying, “The bad stuff is easier to believe”… While she probably wasn’t referring to property investing, the statement could not be more spot on.
As humans, we are genetically programmed to be more alert or responsive to negative or bad aspects or “danger” signs. This is all thanks to our cave-dwelling ancestors and the fact they had to be on high alert should a lion wander in during dinner time.
In terms of property investing, it’s easy to get scared off by negative reports, chatter and hearsay, that have little or nothing to do with the actual moving parts of the market. Add to that the fact that we tend to give more weight to bad assertions than good ones and we’re stuck in a rut of fear and inaction.
Being on alert is great. It gives us a reason to remain cautious and avoid unnecessary risk, but it becomes a problem when fear stops us from moving forward.
The best remedy for combating fear is to ask the right questions and get educated – after all, knowledge is power and in this scenario, that equates to money.
When gathering information and facts on real estate and how to make a smart investment, ask yourself the following questions.
WHO’S DOING THE TALKING?
While it might be easy to ignore your nosey neighbour Nigel when he’s spouting rubbish about real estate, it can be harder to drown out those in positions of authority or power. However, don’t assume that your bank’s manager or economist knows anything about property investment, or even owns an investment property themselves. While it’s the right thing to do to seek out information and advice before making a property purchase, make sure you’re asking people with the right education and experience on property and the investment market.
ARE THE FEARS FOUNDED?
Right now, as we see knock-on effects from COVID-19 globally, a lot of people are scared of making any investment decisions. But history tells us that even when the worst financial crises hit, the market starts to pick up almost immediately and bounces back. While COVID-19 had some severe negative effects, one of the more positive repercussions is that the interest rates have never been lower, meaning it’s easier and cheaper for people to borrow money. Within property, that means it’s cheaper to buy high-value homes. Look at the big picture and how markets have behaved in the past, all of which will give you some confidence when deciding where and when to invest.
HAVE YOU ASKED FOR HELP?
Making an investment decision can be daunting if you’ve never done it before, or if the market is in a state of change, such as COVID. Even if you’re doing your due diligence and working hard to analyse market data and predictions, are you 100 per cent sure you’re looking at credible sources and basing your strategy on your own particular situation? To be a successful property investor does not mean becoming an expert in all things property, but it does mean knowing when to ask experts for help. Seek out people who have the education and experience in knowing how to assess the market so they can guide you to a successful investment outcome.
WHO TO TALK TO
For a chance to talk to our team of property investing experts, you’re invited to our free seminar. This is a chance for you to learn more about how to invest safely and for a future of prosperity.
Sign up now and be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you.
By Jason Whitton
Group CEO Positive Real Estate