Investment Burnout

Recently I have been thinking about what I will term "investment burnout". I think this is in part why I was never able to invest consistently (which leads to successfully) when I was younger. Basically I would put all my effort and focus into trying to invest successfully and eventually burnout when I did not see significant returns and progress. This also led to mistakes such as chasing quick profits and loosing capital. When things went poorly or I encountered a speed bump I would effectively throw in the towel as I had no energy reserves left to deal with these problems and need to start again when my motivation returned.

Now I have an allocated portion of income that I invest along with a portion I use for holidays and other leisure activities. I also have defined a set of goals along the path I am following.

This has allowed me to avoid the burnout

 

@Hodor "Investment burnout", it's a good term, I like it.
I've experienced it with loan applications that have taken ages, or negotiation for multiple properties at once, or refincancing that has taken ages. Or negotiating for multiple properties while refinancing and waiting on a new loan application

 

My property mentor goes for a month holiday overseas every reno/ development project is completed. Than he goes again.

 

I like this idea.

Something came up and I didn't finish my post before.

I was going to say that property investment is a marathon and you need to find ways to recharge along the way to avoid burnout.

 

6 reno/developments per year? That would be an Ok strategy to prevent burnout I guess

 

I started a thread on this topic on Somersoft.com. My enthusiasm returned not too long after. If it happens to me again, I'll just take a break for a while, knowing that it's just a temporary slump.

 

I get what you're saying. That's why you have to be careful with those motivational books and seminars, they pump you up so much you have only one direction to go. It's just not sustainable. This game is a slow burn.

 

Thanks for the link Spludgey.

Guess part of it is to minimise/avoid the burnout and not take a big step backwards if it does. It stopped me from getting any real momentum for a long time until I worked out balance and how to manage my expectations through goal setting.

 

When you are not looking to buy or can't or your investments are going nowhere for a while interest can wane a little.
There's nothing like the search for a new property or a decent captain gain to renew your interest.
Thats also what's great about this site, there are so many enthusiastic motivated people here.

 

That's true @jaybean , you could start to become one of the brainwashed seminar herd if you're not careful, mistaking it for motivation. You need to keep a good measure of skepticism about you I reckon.

 

Very true. We tend to find we go through phases where we're significantly less interested in residential property as a long term strategy. A few weekends ago was one - we had three properties with tenants leaving and new tenants moving in, over the same two day period. Lots and lots and lots of organising, washing of linen, etc etc. all over a period when it felt like it rained constantly. Fortunately these weekends only happen about once a year, but when they do, it's hard to feel the love for investing.

 

Yeah, you can't be on a high all the time, bide your time.
I'm getting the itch back after not buying for a few years and it is so very exciting to go shopping again.
The recent Sydney boom and pending Brisbane boom has at least kept the interest sparked of late.

 

Great thread. This site is addictive and it's easy to get single minded. You hear a lot of success stories here, and most if not all clearly take many years to get where they are. It's easy to miss that though in all the hype and imagine quick and easy gains. I was thinking today about what we've sacrificed over the last few years to pay deposits, pay down debt etc. Not massive sacrifices but it's important to remember to enjoy today. Came across another example recently of a lovely young person who died in his prime. He was an investor but luckily he took time out to enjoy amazing holidays while he could.

No point in burning out over this stuff. You need some motivation to be successful but it's all about balance.

 

Ugh, there's nothing worse than organising renos/cleanups etc... between tenants and having bad weather every weekend to give you some good old investment burnout.

 

The recent APRA policy changes are a game changer. What the spruikers tell you and you read in those spruiker books are really poles apart. Banks will no longer throw money at you if its investor lending. What was counted as $3k for serviceability 5 months ago is now $7-$9k. A month.

 

That's nasty, not requiring funds at the moment, but when I start my build I will, not looking forward to this.

 

I think you need to reward yourself along the way, keeps me motivated.

MTR

 

It's not great. Refinancing took forever, then APRA changes started while one loan app in progress, then had another app with AMP when they pulled the plug. Next...

 

Agree re regularly celebrating.

We have a rule that at the end of each acquisition we do something 'big', eg weekend away or short overseas trip or $2k each shopping spree.

 

That sounds like a nice idea.
We have a small celebration at each 'win' along the way eg. signed contract at a price you're happy with, have a couple of drinks. Finance goes through, have a couple of drinks.
Could become a drinking problem though if you keep buying properties