The best investors seem to have a unique way of analysing the market and making decisions that often defy what the mainstream regards as common sense. "I wish I had bought when the price was low" is something you won't hear from a top investor, who boldly decided to purchase when analysts were predicting a downturn.
So how can you change your thinking, and look at the world in the same way as a top property investor?
- Never Look at Things from Your Own Point of View
An average investor will look at a piece of property and decide firstly whether it is a worthwhile investment, and secondly whether they would purchase it themselves. They visualise their own furniture in the home and look at neighbouring schools and amenities as if they and their family were going to use them. However, this type of thinking limits the ability of an investor to be able to capitalise on potential investments. Top investors are just as comfortable purchasing a property entirely outside of their comfort zone, as they are buying a house that they would gladly move into tomorrow. When evaluating a property, they turn off the part of their mind that holds a bias for their desires and circumstances. In doing so, they can look at a property not only as an astute investor but also from the point of view of someone who would potentially live there. Many investors say, "I would never purchase an apartment," yet there are millions of people who live in different types of apartments all around the world. Limiting your thinking to your own point of view, is something a top investor just can't afford.
Top property investors are not afraid to take action once their analysis is complete. Importantly, they are not impetuous or quick to make uneducated moves, but their analysis techniques are polished enough to enable a fast turnaround. They can confidently approach owners and real estate agents with solid offers faster than everyone else in the market and as a result, they get properties cheaper than everyone else.
This type of action is often associated with not having any fear, but that is a vast oversimplification. While top property investors don't experience fear when making a purchase, it's because they have done enough work to be confident of their action. Likewise, when selling out of position, they do so based on research and market indicators. Do they make mistakes? Of course, but through critical thinking, research and analysis, they give themselves the best chance of success.
- Fall Down, Get Up
Nobody is perfect, and the investment market is far from being fair. Sometimes, it seems that circumstances are colluding against you, and other times, it feels like you are surrounded by people who seek to manipulate you. Average investors take this kind of thing personally, and allow it to affect the way they think and approach future investments. Top investors maintain their confidence and optimism, even when everything has gone wrong. They know that if they spent too long feeling bad about what has happened, they will miss opportunities and the spiral of failure will continue. Top investors get up, brush themselves off and carry on.