Information on how a certain investing strategy can guide you along the golden path towards future wealth in real estate comes in abundance, and so it should; choosing the right way to amplify your real cash has to suit your goals as much as your financial circumstances.
But what about learning of the innate skill to smartly and clearly choose one strategy or property project over another, especially when life takes a turn and outside noise begins to add pressure?
Simon Pressley, director and head of property market research at Propertyology, says that while good decision-making isn’t often explored or taught across schools and universities, it’s an important skill in unlocking future wealth.
“What I see a lot of is people coming in and focusing on a feature or a benefit of an asset or a tax deduction or an emotional consideration, and totally getting lost in what their purpose is of what they’re doing – and that is the longer-term financial benefit,” Pressley shares as he sits down with host and magazine editor Sarah Megginson for the latest Your Investment Property YIP Talk podcast in which the director provides insight on how best to take action when investing in the market.
Pressley discusses how in most cases, people who choose to invest are doing so in order to unlock financial benefits over the long-term.
“Making good decisions starts by having a really clear understanding of what your objective is, what your purpose is or why are you doing something,” Pressley advises.
In the podcast, host Sarah Megginson also turns attention toward the “risk of not taking action”.
“It’s something that people fail to consider, the risk of just sitting on your hands and not buying property for two years, four years, six years, ten years,” Megginson proposes. “How much time in the market have you missed out, how much profit potential have you missed out on?”
Pressley says that “not doing anything is probably the biggest risk of all”.
“But for those who do that probably don’t see it that way because they’re living in the here and the now,” he explains. “So, when I meet someone like that, I’ll deliberately have a discussion about having them project themselves into their 60s and 70s and asking them to describe to me, ‘what sort of lifestyle do you want to be living?’”
The director shares that this involves implementing an investing plan for clients, which encompasses the expenses involved, how far their superannuation will spread, and helping them to be aware of their aged pension, as well as its limitations.
“Once they understand that, maybe they’re going to be more motivated to make some decisions about investing … But sadly, a lot of people who never invest, by the time they realize that they should have, it’s just way too late,” Pressley says.
To find out more about how to make good decisions and take your first steps into investing through property, tune into the latest YIP Talk podcast here.
