We’ve all heard of FOMO.
The fear of missing out.
It’s what gets people moving quickly, sometimes too quickly.
Buying when everyone else is buying. Jumping in when the market feels hot.
It was the catch-cry of the COVID-19 days, where property was treated like diamonds and everyone wanted to get in before the price went up.
But interestingly I’m seeing something different right now, perhaps in the face of global uncertainty, interest rates possibly starting to turn, and an upcoming election this year.
It looks responsible on paper - but it actually holds people back.
FOA.
Fear of Taking Action.
And it’s stopping a lot of really capable, financially sound people from ever getting started.
Researching stuff feels productive, but it’s often actually procrastination
I see this all the time.
People are:
Listening to podcasts
Watching YouTube videos
Reading articles
Talking to friends
Following the market
And don’t get me wrong… this is all good.
But at some point, research stops being progress and becomes an excuse not to take the next step.
It feels like you’re doing something… without actually having to make a decision.
There are no risks or commitments, and definitely no concern of getting it wrong!
But you don’t build wealth by researching investments.
You build it by actually owning them.
Usually over a decent period of time.
If you don’t know what you’re looking for, you’ll get lost in a sea of options
One of the biggest reasons people get stuck is they don’t actually know what they’re looking for, and they also haven’t considered how it relates to them
They’ll say things like:
“I’m just keeping an eye on the market”
“I’ll just get a pre-approval and be ready”
“I’m waiting for the right deal”
But these statements are all vague, and don’t feel like an actual plan.
If you don’t have clear criteria, nothing feels like the right option.
So instead of making a decision, you keep looking.
And looking.
And looking.
I encourage my clients to be specific.
Asking questions like;
What price range are you comfortable with?
What yield or growth are you targeting?
What location or type of property fits your strategy?
What’s your timeframe?
Just this week I had a great example of an investor who was looking for a property in Hamilton which had enough room for a secondary dwelling, in a good location close to a large employer.
He’s been able to purchase something that fits his criteria because he was specific, and when the property came up, he already had a plan and could take action quickly.
He also got a great deal because he was organized.
Moral of that story - when you know what you’re looking for, decisions become a whole lot easier.
The risk of waiting for perfect
We all love hindsight.
Plenty of people lament the fact they didn’t buy during the COVID period and say things like “I would have made $200K”!
And yes, plenty of people did make money at that time.
But remember the feeling in May of 2020 when lockdowns were likely, the property market was predicted to fall off a cliff and there was a whole lot of uncertainty.
The people who purchased property did win.
But they did it in the face of a lot of “maybe’s” and plenty of “don’t do this’s”, even from the experts.
I see people waiting for perfect every day.
The idea that the “perfect” property, the “perfect” time, or the “perfect” rate is just around the corner.
So people wait.
And while they’re waiting, things happen!
Prices move
Opportunities pass
Often, their position often stays the same
Most successful investors didn’t actually buy on a high. They just bought something that fit their criteria, and got started.
Then they learned, adjusted, and went again.
I’m very open about my mistakes, and most people who have “won” in the property market haven’t got it right the first time, and continue to to do so.
But over time their trajectory is upward and that’s what matters.
So if you’re keen to take action, what should you do?
After being in this game for 10 years, I’ve learned a few things about what works.
Define your criteria. Be really clear on what you’re looking for and why you’re doing that. Are you searching for cashflow, growth, certainty, development possibility
Sense-check your numbers. What can you afford and how will this fit into your life and investment strategy? Be careful of doing what everyone else is doing as their goals might be different to yours
Take one real step. A conversation, a viewing, a finance approval. Move forward and make progress!
And if you’d like some help - reach out.
Because the gap between research and action is where you might miss out.
And at the end of the day what will serve you is having a plan, backing yourself, and taking action
- Fortune favours the brave
PS - This week’s Growing Kiwis guest is a great action taker.
He’s built a property portfolio, moved to his dream home at the beach, and consistently sought out advice and skills to improve his position
The episode drops today, subscribe here to have a listen
