Fear, the current market vibe, blog post, stuff...

Howdy folks. I have had a bunch of conversations lately with investors who want to invest and don't want to invest at the same time.

They want it enough to do research, sign up for things, book strategy calls, even get loan pre-approvals.

But they admit on the phone that they are scared. I never try to convince someone to buy, I only highlight the pros and cons of various options as best I can.

As a result I have seen more than a few buyers sitting on their hands lately.

Anyone resonate?

My March Blog is dedicated to this feeling if you would like to have a read - and please offer any comments below I would like to keep exploring this.

 

What can I say.....market sentiment is very important, it will continue to drive prices south

I dont operate a business imvolving property but I expect mortgage brokers will be feeling some real pain

Just have to look at recent posts on PC there is a clear shift to other asset classes

Smart investors should sit on their hands, or risk eroding capital. Major issue credit squeeze, downgrading of economy and uncertainty fear when Labour gets in, not if but when

 

Buy in areas with high demand low supply...you will never get burnt.

 

Ok, but problem is this is not happening today, hence market going south. Even blue chip gets hammered when markets go bust, infact they fall harder, ie inner east Melb blue chip

 

A lot of people do just seem to want easy money e.g ring up BA and find out where they can buy property to make instant money with minimal effort. Risk taking is part of growing your portfolio, and your mind. Researching alone is probably just going to keep delivering reasons not to invest and hence you risk ending up worse off in ten years or so than if you'd bought any property, worse off even perhaps than if you'd bought a lemon

 

it is especially difficult for 1st time home buyer or investors. the media has a good influence on them. on one hand, they fear the price drop even further, on the other hand, they fear they might miss out on good buy opportunities.

how do you help your clients address it Matt, @BuyersAgent

 

Fear is a very strong emotion - the media has a LOT to answer for.

In your situation Matt, I reckon it's worse because your clients are outsourcers, and therefore more willing to be 'told' (by the media, friends, experts, whoever) rather than digging in and gaining their own knowledge.

 

Totally agree. Everyone has fears. The fear of failure, the fear of stuffing up, the fear of missing out, the fear of dying, ...

For me, the only way to handle fear is to remind oneself of the following:

FEAR = False Expectations Appearing Real
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Then get on with life.

 

I only wish I had the borrowing capacity to pound the pavement.

Would be a fantastic feeling walking into an inspection and being the only one there...then hurling over a ridiculously low offer (and potentially be taken seriously).

There is a right time to be looking for a property. Now is that time. Things may get worse....but conditions now are conducive enough for me to go all out on an inspection blitz. If only...

 

The major challenge of success always has been and always will be overcoming the walls and obstacles we all put up for ourselves at times.

This is precisely why developing and maintaining an optimal mindset is key. It's not for the times when all is hunky-dory but for times when fear and uncertainty pervades.

That's why top stock traders and stock investors take developing an optimal investment mindset dead seriously. They face visible market fluctuations and on going uncertainty on almost a daily basis. Comparatively, property investors get off easy in this regard.

 

Good question Eric - I don't think I have a perfect solution, currently I just name it... then we look at the fundamentals in local areas such as population growth numbers, infrastructure projects, and I state my confidence that over the long term these things will win and the fear will subside resulting in a catch up. I am honest that I can't predict how things will play out short term. I remind people they have a choice and I leave it with them.

I think you are right about this, I have also observed Brokers and BA's tend to have the same clients, the ones who want the successful outcome without the time suck of total DIY. I have had some very well educated clients recently however, which is a good sign. One of my recent clients is an employee of the Reserve Bank - he purchased before the R.C. was handed down. I had some good laughs with him about the irony of buying his place at that moment in time. He basically said "shares are just as bad as property and its the right time for me so I might as well invest, I am doing this anyway".

It is very nice to be able to go in hard, pull bigger discounts and demonstrate value multiple times over your fees. Best one recently was that case study 3 mentioned in the blog post - good percentage reductions on that one and a very happy client lol.

On a personal note it is also nice to have the agents being much kinder and more inclined to call back. I know this is going to keep swinging back and forth like a pendulum but I will still enjoy the current situation after a few yrs of having to fight to get their attention in the previously hotter market.