We spent time with a very wise gentlemen who attempted to convince us that there are only two factors driving property investors: FEAR AND GREED!
We strongly disagreed since we firmly believe that property investors can inherently be driven by IMPACT, utilising the Property Assist model and philosophy.
There is been greater awareness about IMPACT PROPERTY INVESTMENT amongst both asset originators and investors over the last period, including our property investors.
In most cases the wise gentleman was indeed correct with his analogy. Our experience in dealing with many property investors proves this, as we clearly experienced the pendulum swings from the initial excitement of helping others, whilst earning predetermined returns with property as security (the GREED part) to questioning how the facts presented can be true and what happens when things do not go according to plan (the FEAR part)
The change is driven by fear of the unknown, irrespective of the merits of the opportunity, especially when investors are informed of any potential challenge during the investment period. Investors are then willing to only accept their capital investment back, and upon the situation changing again, demands that penalties be charged to the property owner.
How can you avoid these emotional swings during the investment process?
1. Have detailed goals and purposes for your property investment. Why do you want to invest in property? The sole focus should not only be the return on investment. The purpose and goal should be much broader. Also be conservative with expected investment returns.
2. Determined the timeline to reach the goal. Be realistic with your timeline and avoid putting pressure on yourself and allow fear to creep in.
3. Have a strategy how to achieve that goal. Continually research, plan and establish the investment products and property investment vehicle you prefer to use to achieve that goal.
4. Use actual statistics and facts as benchmarks. Avoid extravagant expectations and obtain input from specialists to assist you.
5. Budget and stick to the plan. Set up a budget and avoid any deviation, whilst taking current property trends into consideration. Revisit the plan to ensure that you keep the course.
The biggest fear for new property investors is the fear to start investing. When you have done your research and made your carefully considered decision, do not procrastinate or become overeager to act. Contact and get input from people who have experience in property investment with a good tract record.
Edwin Griffiths said: ”if you risk playing the game you risk losing the game”.
No investment is without risk – make sure that you take a calculated risk.
Enjoy your investment journey and do not allow fear or greed to enter your mind as it will only leave you with less returns a sour taste in your mouth irrespective of the outcome achieved. View our investment opportunities.
Get in touch with us today and we can assist you on your journey