Building on the theme from last month, I'd like to share a few more golden nuggets with you from my latest book, Why Property Works. When it comes to the subject of buying property for the purpose of making a profit (which is typically why most people do!) then it is imperative to be thinking and going about it in the right way. I have found, over the years, that it is necessary to make big decisions such as these from a grounded and calm position. To illustrate this point, when you look at the stock market, you can see clearly that buying and selling decisions are based almost entirely on the fear or greed factor. In a Bullish market, people are happy to make bold stock purchases and have confidence in where they think the market will head. When entering a Bear market, the opposite effect is true. Traders battle to sell stock which has started to fall in an attempt to 'quit while they're ahead'...perhaps.
When considering your next property purchase, take a careful look at why you are making it. As we all know, everything starts in the head. Much of the coaching and mentoring I do with people involves working on their mindset. After all, when you are on the verge of making a really important decision, you must ensure that you are making it from the right 'place'. What do I mean by this? Well, when you consider how much is at stake when choosing which property strategy to follow and which property to purchase, you can see why...I hope! There is much hype around the current property market, versus a very different picture even only a year ago. In my business, I have noticed there are a lot more people who are happy to come back into the market now that the 'good news' is back, when, in reality, the clients I have been working with over the last 3-5 years are the ones who have massively benefited from making informed, level-headed decisions during the so-called down times.
What I wish to say is this. Making decisions either from fearful or greedy thought processes will likely end in a bad result. Being caught up in mass hysteria or equally, mass fear (or your own feelings of excitement or fear) is, in my opinion, the wrong environment to decide where to spend your money from. Those who do the best are the ones who keep a calm, cool head, as well as doing their research, of course.
I will give you an example. I have come across people at various property networking events who have said to me they 'need to make money' from property. Already, this one sentence comes from a fear basis. Of course, the object of the exercise is to make money from your property endeavours, however the 'need' to make money comes from a sense of lack.
With the principle of 'like attracts like' in play, this can be dangerous. Time after time, I have heard about and come across people whose 'need' to make money has backfired and they have ended up buying a money pit of a house, or have been faced with a 'tenant from hell'.
What can we learn from this? Well, as far as I'm concerned, your intention for each purchase has a lot to do with how well you'll succeed.
There are many books on the subject of mindset and I have really only scratched the surface here. I hope, however, that putting it into the context of property, you will take the point on board and bear it in mind for any future purchases you make.
To your 'level-headed' success.
Hazel de Kloe
Property Investor | Property Mentor | Speaker | Author
© Why Property Works 2014 | www.whypropertyworks.co.uk