The 7 deadly sins of investing in property

Investors them­selves often pose the greatest threat to their fin­an­cial secur­ity in times of uncer­tainty, which has released a list of the seven deadly sins for investors.

The best strategy for investors in the cur­rent eco­nomic cli­mate is to stay calm. “Fear is a great motiv­ator but a bad guide,”. “People who act cool will make bet­ter decisions than those (who) act emotionally.”

Investors must remain dis­cip­lined and invest for the long term in order to reap the bene­fits of their efforts once the cur­rent troub­ling times pass.

The seven deadly sins for investors in the cur­rent cli­mate are:

  1. Instant grat­i­fic­a­tion. Over emphas­ising imme­di­ate rewards at the expense of long-term needs.
  2. Naive diver­si­fic­a­tion. Tak­ing on unne­ces­sary risk by divid­ing money based on rules of thumb without eval­u­at­ing risk tol­er­ance or return expectations.
  3. Over­con­fid­ence. Believ­ing too much in one’s prowess as mar­ket prophet when mar­kets are just in a bullish cycle.
  4. Belief per­sist­ence. Ignor­ing evid­ence or indic­at­ors that are con­trary to what is believed to be in one’s own best interest.
  5. Over­weight­ing recent events. Giv­ing too much import­ance to recent events.
  6. Loss aver­sion. Plan­ning more for worst-case scen­arios to min­im­ise losses rather than con­cen­trat­ing on how to best max­im­ise wealth.

Fear of regret. Doing noth­ing because of not want­ing to make the wrong decision.

The firm provides the fol­low­ing tips to help avoid com­mit­ting the deadly sins:

  • Con­struct­ing an appro­pri­ate invest­ment plan. Determ­in­ing an appro­pri­ate risk tol­er­ance in con­junc­tion with a professional.
  • Stay diver­si­fied. Being prop­erly diver­si­fied to limit down­side losses in dif­fi­cult markets.
  • Think long term. Stay­ing com­mit­ted to a long term invest­ment strategy and not react­ing hast­ily to what will ulti­mately be tran­si­ent events.
  • Delay of grat­i­fic­a­tion. Res­ist­ing mak­ing rash decisions when mar­kets are racing or retreat­ing that you’ll regret.

Apply these prin­cipals and you keep a strong found­a­tion to build wealth.

Cilck for Defin­it­ive real estate invest­ing defin­i­tion guide

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia