Fear can hold you back as a potential property investor – fear that you’ve missed the boat, fear you don’t have enough deposit to get in, fear of not knowing if you have the right team and property investment strategy to build a thriving property portfolio. Procrastination brought on by fear is a common issue that affects many potential property investors.
It’s the act of delaying or postponing tasks despite knowing there may be negative consequences associated with the delay. In property investment, this kind of fearful hesitation can be particularly detrimental, as it often leads to missed opportunities and stunted portfolio growth.
The longer you leave it, the harder it gets to go and to start a property investment strategy.
By understanding your fear and procrastination and implementing effective property investment strategies, you can take practical steps toward achieving your property investment goals.
If you want to hear Jason Titus share his journey from having $32,000 in savings to buying four properties within 2.5 years and now having an investment property portfolio valued at $1.9m, you can find the full podcast episode here.
The Property Investment Market of 2024
Property investment fear can manifest in various forms, from hesitating to make a purchase decision on a property to putting off conducting thorough market research. It’s a behaviour rooted in the avoidance of discomfort or anxiety associated with taking action. Despite knowing the importance of taking prompt action, you can often rationalise your inaction with excuses or distractions.
Several factors contribute to procrastination among potential property investors. Often it’s your fear of failure or making incorrect investment decisions, leading you to delay committing to a particular property or market.
If you look at the median house increase over 2023 across Australia but particularly in Sydney, it can increase $1,500 to $2,000 each week. So on top of paying your rent or mortgage, there’s no way you’re saving $1000-$2000 a week just to keep up with the compounding increase in house prices in Sydney.
If you’re not in the market, you’re falling behind as well. You can see all the talk of property prices stalling or falling hasn’t eventuated.
With low supply on housing builds, increasing migration numbers, and statutory tax cuts this year with potential rate cuts in the future, the odds are stacked in favour of house prices continuing to increase in 2024. All the economic metrics are leaning towards a strong year in property as well. Now is the time to take action.
How To Buy An Investment Property With Equity
A lack of clarity or uncertainty about investment opportunities can worry you, preventing you from taking action.
How does buying an investment property with equity work?
- You find a high growth location.
- If the property is worth say $450,000, try and buy the property for $425,000 or below market value, then you’ve already got a bit of equity on the property.
- Your property goes up in value again. So you’ve got your already baked in equity from the below market purchase, you’ve got a bit more equity from the value rising, and then you take it out and use the equity as a deposit for your next investment property.
This simple property investment strategy of buying below market in a high growth location and then snowballing deposits is a repeatable, scalable investment model. You can read a real life case study of Atelier Wealth clients who used this property investment strategy and found great success in buying an investment property with equity.
The Impact of Fear on Your Investment Strategy
The consequences of procrastination in property investment are more than just the delays in decision-making. The longer you over analyse your property investment strategy, the greater the risk. By delaying investment actions, you may find yourself priced out of desirable markets or unable to capitalise on favourable market conditions.
Hesitation can also result in missed rental income opportunities and reduced potential for capital appreciation. Over time, the compounding effects of inaction can hinder your portfolio performance and diminish your long-term wealth-building chances.
If Jason was to give himself some advice back before he started investing, it would be to get ready. There’s lots of opportunities coming, just to get mentally prepared and let go of fear.
Strategies For Overcoming Your Fear Of Buying An Investment Property
Set Yourself Clear Goals
Clarity is key when setting investment goals. By defining clear and measurable objectives, you can gain a sense of direction and purpose, reducing the likelihood of putting off taking the next step.
Large investment goals can also feel overwhelming, so break them down into smaller, actionable tasks and make them more approachable.
Create Accountability
Having someone to share progress with and hold you accountable can be highly motivating. Whether it’s a mentor like Sam or Jason from Australian Property Scout, a fellow investor, or friend, having someone to provide support and encouragement can help combat your fearful internal dialogue.
Deadlines also create a sense of urgency and help maintain momentum. Breaking your goals into smaller milestones with associated deadlines ensures your progress is measurable and keeps you focused on your goal of buying an investment property.
Acknowledge Your Fear and Perfectionism
Fear of failure or perfectionism can paralyse you when it comes to buying an investment property. By identifying and addressing these underlying fears or limiting beliefs, you can move forward with more confidence.
Perfectionism often leads to inaction as you wait for the perfect investment opportunity or solution. Embracing the risk of imperfection and recognising that progress is more important than perfection can help you take meaningful action.
Take Action Toward Buying an Investment Property
Waiting for the perfect moment can result in missed opportunities. Instead, adopt a mindset of action and make decisions promptly. Taking action, even a slightly imperfect action, is often better than inaction when it comes to buying an investment property.
Overcoming procrastination requires momentum. Start with small, manageable tasks to build confidence and momentum. As progress is made, confidence grows, making it easier to tackle larger challenges. You can find more tips for overcoming your fear of buying an investment property here.
Start Your Investment Property Financing Journey
In the fast-paced world of property investment, overcoming fear and procrastination is essential for your success.
From setting clear goals and creating accountability to managing your fear and perfectionism, each step plays a role in combating your hesitation and driving property investment progress.
Remember, the path to success is paved with consistent action and perseverance. As you start your investment journey, keep these strategies in mind, stay focused on your goals, and never underestimate the power of persistent effort. In the podcast episode, it’s clear that by taking action and making decisions, Jason and his family are in a much stronger financial position now.
If you want to stop letting fear get in the way of embracing property investment strategies like Jason’s, then find out how to begin by reaching out to an investment loan expert here at Atelier Wealth Mortgage Brokers or get in touch with a mentor at Australian Property Scout.
