The Biggest Real Estate Doozy You’ll Ever Make
When it comes to real estate, there are a lot of mistakes that people can make, but there is one doozy – perhaps the biggest of all, that will impact your ability to create future wealth more than anything else.
Ready for it? Drum roll please…. WAITING FOR THE ‘RIGHT’ TIME TO BUY.
If you read that as me screaming, then you read right!
REAL ESTATE DOOZY
Over the last couple of months there’s been wide-spread talk about the market potentially slowing down which may cause some investors to wait and watch. The problem with this is, while you’re sitting there hoping for a halt in property prices – the exact opposite is happening.
Now not only are you losing potential capital growth by not buying today and gaining more value on your property tomorrow, the longer you wait, the more you’ll pay to enter into the market.
Take this for example. Over the last 12 months we’ve seen around 20 per cent growth (some areas more than others). So even if going forward the market grew at a slightly slower rate of 15, 12 or even seven per cent – growth is still growth and the price of real estate will continue to be more in the future than it is today!
Not acting in the hopes that the market will go backwards is wishful thinking that will cause you to lose out on huge gains. The best time to buy (with the right investment strategy) is today.
But what if this contradicts what you’re being told from the media?
DOUBLE REAL ESTATE DOOZY
I’m sure by now you’re aware that you can’t always believe everything you hear on TV, and this could not be truer when it comes to the stories we’re told about the real estate market.
For instance, this year you will have noticed that the media began reporting on some very interesting angles when it comes to the price of property.
Mainstream media outlets began talking about the real estate market in the same way they would report on the stock market – fast-paced and somewhat volatile, while ignoring the fact that these assets are measured in very different ways.
The fear-based rhetoric around the property market and the expectations of it has seen a lot of investors caught up in meaningless numbers that don’t have anything to do with the overall success of real estate.
BREAK-FREE FROM THE REAL ESTATE RUT
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 a booming property portfolio.
ACTION EQUALS MONEY
For a chance to talk to our team of property investing experts, you’re invited to our free seminar. This is an opportunity 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 Sue Irons
CEO – Positive Real Estate New Zealand