It has indeed made for a flurry of activity in the news, and it has also made it easy to get distracted from the real task at hand.
Stock market investors will tell you that making decisions based on the latest blip on the screen can be the death of a stock trader. This is because the short-term jumps or often falls has very little to do with the long-term viability of a company. Now with property market reports starting to create similar data on property prices on a weekly, daily or hourly basis based on a range of data, the same procrastination is starting to be played out.
To be honest the relevance of such information seems hard to grasp when it can take at least 4 weeks to undertake the simplest property transaction and with some contracts involving extended settlements, put and call options and off the plan purchases, it seems difficult to understand daily property investment news about property values.
Here are our four tips to help you overcome property investor’s procrastination and get started in property investing
Get a compelling why? If you chose property as an investment because of its long-term returns, you could begin to focus more on what is the long-term picture. So why did you choose property? Was it the fact it seemed real because you can touch and feel it, or you could drive past it?
Start Easy, Break it down. Ideally, you should be holding your property investments for as long as possible to maximize our return.
Remind yourself with data that supports this view.
Most experts report that those people who had sold for a loss in the last quarter had only held their property for an average of 5.7 years, while those who made a profit held for an average of 9.9 years.
Be kind to yourself – If you were hoping to double your money in the property market, it’s worth knowing that those lucky investors who achieved this level held for an average of 16.7 years. This is because of the high entry and exit costs that property buyers and sellers are exposed to which can quickly erode the profit of a portfolio.
Be mindful – Perfectionism and the fear of failure are at the root of procrastination. To overcome this fear remind yourself while there may be short-term fluctuations the compounding growth of property can simply be taken advantage of by simply by holding on through good times and bad.
When you look from a big picture perspective, Australia’s population growth is still set to increase at an ever increasing rate. With housing being one of the necessities of life, this additional population will no doubt require somewhere to live. So with the right property, the outlook for property demand remains reasonably stable.
So despite the noise that goes on in the markets and the myriad of influences that can play out in a day, a week or the coming months, it’s wise to remember that property is a long-term game.
At Awesome Lending Solutions, it is amazing how despite the recent property price increases in some select property markets, there are still many areas where our clients are finding incredible value using proven property investment strategies. We must sometimes admit using the professional assistance of property investment advisors and property buyers.
Why not get our help getting over your property investment procrastination with a free Property Acquisition Plan that can show you how positively geared property that’s been bought well, with good rental returns and the potential for long-term capital growth can help build your life of abundance and wealth for decades to come?