Join Australia's most dynamic and respected property investment community

Increasingly cautious as investment journey unfolds

Discussion in 'Investor Psychology' started by teg499, 16th Jul, 2015.

  1. teg499

    teg499 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    69
    Location:
    Sydney
    When I started out, the decision of where to buy was a very simple one. It was based purely on affordability. I had a very small deposit but knew I wanted to buy an IP and start my investment journey. Having a small deposit greatly narrowed the playing field to a small number of properties in a low cost syd suburb.. this was a number of years ago. I applied the same investment criteria (bought low cost units and did renos to increase CG & yield) to my other properties and all have been good purchases.

    Now that my properties have risen in value, and having access to this equity through refinancing, I find that I have more options available in regards to what to purchase.. Property Investing is no longer a simple choice as the number of properties and suburbs that I can buy into has greatly increased.

    I find that with more options available, it's easy to get lost in the world of analysis paralysis, of fear of making a mistake with the next IP.

    Have others experienced this?... i.e having made good CG's from previous IP's, are you hesistant to keep moving forward with investing due to fear of losing your gains ?

    How do you keep moving forward once the numbers get bigger and bigger (and potential for loses increases).

    Did you stick to the same types of properties that you did well with, or did you change your approach and expand your investing (i.e move to interstate investing, developments, etc) and possibly increase your appetite for risk ?
     
    Last edited: 16th Jul, 2015
  2. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,378
    Location:
    Somewhere in the land of Oz
    I would think it's the other way around, now that you've been around the block a couple of times and have cash to splash it's time to go shopping! Work our your plan and goals and go to town and buy up big!
     
    Jessproperty and Bwinny like this.
  3. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    If you're struggling in this area, perhaps you can self-impose some limits to make the path a bit clearer. Sometimes working with limitations can help you be more decisive. If you have lots of options, start subtracting all but what you believe is the very best.

    My first was a 1 bed apartment, then I bought two 2 bed apartments. Next is a house in another state with future development potential–I've narrowed it down to 2 suburbs so I'm definitely evolving but also keeping clear criteria so I know what I'm looking for rather than being overwhelmed.
     
    Last edited: 16th Jul, 2015
    teg499 likes this.
  4. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,122
    Location:
    FNQ
    I think it has got easier, am I worried about making mistakes? Yes, but I already have made some and time has erased any consequences other than opportunity cost. Because opportunity cost is hard to quantify I don't get hung up about it.
    What concerns me more as the numbers grow is managing cashflow first followed by having a suitable buffer and access to funds to cover short term periods of high expenses.
     
    Jessproperty and Jimmy Foxx like this.
  5. Jessproperty

    Jessproperty Well-Known Member

    Joined:
    21st Jul, 2015
    Posts:
    49
    Location:
    Sydney
    I think it gets easier aswell!

    We started with small renos, then to house builds, duplex & triplex and will be starting on units soon. Because you have more cash available you are tapping into areas that aren't so accessible to beginner investors.

    With experience you are able to make decisions easier and quicker and look at something and know exactly what you will do with it...