With question marks over which way interest rates might go, turbulent world financial markets and uncertainty over a possible second wave of GFC, is it really a good time to get into real estate?
As an investor who has gone through many previous property cycles, the fundamentals never change. Whenever there’s uncertainty, there’s always a great opportunity to pick up a bargain.
With all the fear and greed in the marketplace, where is your headspace at right now? Warren Buffet is famous for saying, “Be fearful when others are greedy, and be greedy when others are fearful.”
What I’m hearing in the property marketplace at present is fear. Fear of defaulting on mortgages, fear of not being able to sell properties for the price the owner wants, fear of not being able to buy properties due to restrictions on access to finance, etc. But as an investor, aren’t these great opportunities to help solve problems for people?
The good news is that there are always opportunities in the marketplace if you can come up with a solution and be a problem solver. The real question is, are you currently 1) cashed up, 2) cash strapped or 3) cashed out?
- If you’re cashed out, take the time to invest in your education and develop your skills on how to be a problem solver so that you get paid and are then able to invest yourself.
- If you’re cash strapped, perhaps find good deals for investors and take a finder’s fee. You may want to hook up with “cashed up” investors.
- If you’re cashed up, look for distressed sellers with a property where you can solve their problem and add value for yourself.
So with all the fear out there at present, there are many opportunities to grow your property portfolio. A great way to expand your investor mindset is to understand the psychology that drives your own decision making process.
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