Just Do It!
Paralysis by analysis is a common affliction of aspiring investors - Maxine Clason-Thomas explains how to overcome it.
1 December 2018
A common theme I often see in the property investment world is investors (or “wannabe” investors) frequently lacking a very crucial part of the investing process – taking action.
They will view multiple properties online and in person, attend seminars, read numerous books, listen to all things property, only to end up overloaded with information and unable to act.
A name for this is “paralysis by analysis”.
Don’t get me wrong, in the current market with the negative media sounding out from all angles and property pessimists giving plenty of their two cents worth, along with changing policies, it’s with good reason that many investors, especially newbies, are second-guessing themselves and wondering if it’s a good time to buy or whether they should wait for the market to bottom, wherever it may be in New Zealand.
However, aside from whether it’s the current market, or a booming market, many buyers, even with all the knowledge they have gained in theory, will still go around in circles forgetting to take action.
I have discovered that there will always be something else to learn and the best way to gain knowledge is to immerse yourself in the actual game itself.
Lack of taking action often boils down to:
- Finding the perfect property’” and
- “Is it the right time?”
‘Ignore the media and the BBQ committee talk, set your own goals bearing in mind the big picture and take action’
Let’s touch on finding the perfect property. If you go out searching for property without any solid investing criteria that fits with your personal situation, such as age, income and goals you will certainly go around in circles. The thing is, to find the perfect property it’s not going to be anything like your dream home. Investing is all about economics, therefore it is crucial to forego emotion. Base your thinking on financial gain as opposed to personal feelings.
A few things to think about when finding the perfect property: Are quality tenants important to you? If so, then is this the best location? Will it provide the returns and potential gains you require? Will it appeal to the owner-occupier market that sustains property prices over the long term? Does this matter to you? Is there any development or gentrification going on which could either accelerate or be detrimental to your growth/return?
Timing. Many seem to believe there is a right time to buy, and for the pessimists, that time is never now. Property investment is long term, ideally eight to 10 years minimum to ride out one full cycle. The best time to buy is always now or yesterday, however that doesn’t mean just buying any old property or the one you fell in love with, it means setting out your criteria as mentioned above, learning about the market you are buying in and knowing that when your offer is accepted you are buying well.
With time being one of our most important assets in life, don’t waste it by going around in circles when you are ready to buy a property. The sooner you buy right and buy well, the sooner you can leverage and buy again enabling you to grow your portfolio and reach your goals.
Ignore the media and the BBQ committee talk, set your own goals bearing in mind the big picture and take action.
You will never know it all before you begin.
If you are not in the city you want to buy in or are time poor and lack market knowledge then feel free to get in touch to see how we can assist. Having someone trusted acting on your behalf and being where you can’t be can save you thousands of dollars along with full peace of mind throughout the buying process.
iFindProperty is a licensed Investment Property Agency and our clients tell us we are great at helping investors find, analyze and buy great properties to build an awesome portfolio. Our team of Property Finders operate all over New Zealand and each are successful investors in their own markets. Successful investing starts with you and your property goals, so contact us today to talk about what you want to achieve and we will put a team in place to make it happen. Contact:[email protected] or 0274 866 146.