Knowledge is power. Particularly when it comes to playing the property markets.
You need to undertake a decent amount of due diligence as a property investor looking to achieve the right balance of income and growth. But what happens when exploration becomes obsession?
What happens when you become entirely overwhelmed with the sheer volume of information about all things real estate that pervades virtually every corner of our lives? What happens when knowing becomes disempowering?
A thorough understanding of the market in which you intend to acquire your investment is undeniably essential, but research can quickly become your Achilles Heel.
Paralysis by analysis can beset even the most seasoned investor at any time. Although it’s arguably a condition experienced moreso by would-be investors just learning the ropes.
They succumb to a never-ending exploration of the property markets in a bid to uncover what makes them tick, believing a time will eventually come when they have enough knowledge to feel completely comfortable with their investment decision. Inevitably, that point never eventuates.
Real estate is a changing market, within a changing economic environment. Because it’s a bit of a moving target, you need to make friends with the fact that you’re never actually going to account for every variable. Even the experts who live and breathe bricks and mortar can’t do it!
So what’s the alternative to succumbing to a state of inertia and potentially losing out on solid investment opportunities? Here are 4 ways to avoid the dreaded paralysis by analysis…
- Don’t let your fears stop you
Rather than allowing any unknowns in the equation to become roadblocks to your success, sometimes you just have to take a leap of faith, embrace your concerns and accept fear as a normal neurological response. But that doesn’t mean you have to surrender your financial future to it!
A certain amount of trepidation is healthy. I’d be more worried about a completely fearless investor, because they may not adequately work to mitigate risk and end up over-extending.
Fear is normal and healthy. Acknowledge it, address it and then use it to your advantage, rather than letting it be the death Nell of your budding investment career.
- Have an airtight investment strategy
Plans don’t always work out in life, it’s true. But that doesn’t mean you should just flounder along without any idea as to where you’re headed or where you hope to end up at various points along the journey.
Knowing why you’re investing in property and importantly, how you will go about building a successful and sustainable housing portfolio can give you the necessary confidence to take action, comfortable in the awareness that your investment decisions align with your big picture strategy.
- Know your risk profile
We all have varying comfort levels where risk is concerned. Some of us are happy to dive right in and see where the waters of life take us. Others are far more cautious and like to test the waters before swimming headlong for the deep end.
It’s important to understand where you sit on the risk continuum. While you can’t possibly eliminate all risk from the equation entirely, you can certainly account and prepare for those identified during that all-important planning process.
- Have confidence in your decision-making
This generally builds with a bit of experience. When starting out however, confidence can be gained from preparation and importantly, speaking with those who have achieved the type of success you strive for in your own investment endeavours.
Try not to second-guess yourself, instead seeking a healthy balance between a well-rounded understanding of your own investment goals and strategy and good old-fashioned gut instinct!
Need more reassurance?
Today’s property investor has more information at his or her fingertips than ever before.
There are literally hundreds of thousands of websites packed with market predictions, investment strategies and feedback on what has or hasn’t worked for others (and much of this is free!).
The great irony is that all this information actually makes it HARDER for most people to make a decision.
Here at Trilogy Funding, we avoid paralysis by analysis ourselves by tuning into a select few ‘inner circle’ property experts who really know their stuff.
We recently asked these experts to share their best tips and predictions with a small group of Trilogy clients.
Across a series of four presentations, each expert shares their unique take on the property market and how it affects everyday investors.
If you’re considering investing in the near future, these presentations are the quickest and easiest way to get an authoritative and personal account from our ‘inner circle’ of property experts.
Even if you’re NOT considering starting or expanding your portfolio right now, you will still benefit from takeaway tips for uncovering high-performing properties – be it now or in ten years time.