How do you take a breather and clear your head when investing?

Its normal.

Total immersion is the way to go

 

@Dan Donoghue remind me to bring the mallet with me for coffee, i'd hammer you straight.

 

Also good if you have someone you can talk it over with.

I am some what similar to yourself - strong on the research and strategy but weak on action and follow up.

The more I talk things over the more confidence I get.

My partner, on the other hand, is all action once the research has been done.
Sometimes I'll find myself having second thoughts only to find out we have bought the place.

I can then quickly move on to what we have to do with it.

I think two heads do make better decisions.

 

Hi @Michael_X , thought I would post to say that I am hoping I just secured a deposit on a title that checks all those boxes! it is commercial property though and I have to commit 30% to it, so not quite as unicorn as I'd like but i'll settle for 9.8/10!! They are out there, thats for sure!

 

Dog and beach.

Everything is clearer after you step back and approach it after refreshing by doing something completely different. If you are constantly too close you don't see the bigger picture and the mind to becomes gridlocked

 

Go back to the basics, ask what you want, where do you want to be, what do you really want to do.
When you have answered that look at only the properties that will take you where you want to go.
Some properties will suck the life out of you while others are a breeze, and only go down the path that suits your knowledge at the time.

 

Go on a weeks holiday away and turn off your phone. For a week. Notice life with your eyes.

 

Write down a list of the things you are looking for in a property.

Now rank them in order of importance.

Write down the aspects of each property.

Pick the one that best suits.

Failing that, print off a list, stick it to a wall. Throw some darts and see which one it lands on.

For example, if I'm looking for a house with granny flat potential, I will aim for the one which I can get the best layout from. I don't mind paying a bit more if it works out better.

(Which is what I should have done when buying the forester.... Should have got the xt model)

 

There is no perfect property.

As others have said, put your criteria down on paper and stick to it.

It is a steep learning curve....but this headache will all be worth it in the end

 

Start with an idea of what you are trying to achieve, determine a basic strategy to achieve this, it can be refined later with experience.
Once this has been done look at the Macro picture, determine the general where, is diversification important to you? Or would buying places closer to home allow you to sleep easier?

What sort of price range and is cashflow important?

Find areas that meet these requirements. Try not to judge other cities/suburbs values relative to what you can buy in your backyard, cheap doesn't necessarily mean good value, it sounds obvious but I need to remind myself all the time of this.

Purchase a subscription to RPdata etc and take your time studying sale prices, then visit plenty of opens to see how they stack up, different cities have different and unfamiliar housing styles, it can take a while to understand this.

Determine how hot or cold the market is, this is important as if the market isn't hot you will hopefully have a little time to consider and negotiate, this will help with the dreaded fear of missing out. This is a powerful factor starting out as emotions can come into play, I always try to tell myself that I can walk away. Sometimes it's not easy.
If it is a straight buy and hold that you are looking for find something which hopefully will be relatively low maintenance and will appeal to tenants. If you want to add value then this isn't as important.

It's highly likely that after purchasing your first ip you will suffer buyers remorse, seeing a slightly better possible deal, don't stress about this, it's a natural reaction.

 

@Dan Donoghue I've had the same problem over the last 10 years of freak outs. Get a hobby. I spearfish now and that helps me break the chain of constantly looking at investment stuff. Even if you can't do your hobby at a particular time you can research it and learn more about it.

 

Investing is a game of opportunities, timing and also weighing up opportunity costs (1 investment vs another)
Investing like gambling has risks.
Education helps to minimise risks.
Education without action is not investing.

At some point we need to take action.
Action in life creates momentum, which improves motivation.

I always find when I feel stuck, frustrated or stagnated I just need to make some progress in life, even a tiny step in the right direction. Usually improving a system or something in life you have been putting off. Small improvements each day go a long way.

Fear also prevents action. However what I fear is looking back when I'm older and regretting not taking more action.

Analysis paralysis gets us all in investing. Overcoming it the first time will make it easier going forward mate.

 

Go for a 5-10km run every few days, helps me make important decisions and clear my mind.

 

I find it so stressful and time consuming buy properties (especially interstate) I usually take 2 months off most things real estate after a purchase.

Take a break, then come back with the usual passion and dedication needed

 

One of the biggest issues is too much research and too many opportunities will cause analysis paralysis. As per my previous post...go for a property which will balance yield (holding costs) vs. capital gain (more deposits for the future).

Depending where you are in the cycle...these properties are 5 or 6 or 7. They will typically return 5-6% early in the property cycle. They are in established areas in most capitals. They will typically cost 280-400k.

Look for ones where with simple cosmetics reno - i.e. painting, floor coverings, light fittings, A/C, and garden clean-up will give you 30-50k equity.

The other option is to buy land and build again you could get 50-100 equity...but this requires more skills and not recommended for newbies.