What do you think is the #1 reason that stops.....

Discussion in 'Investor Psychology & Mindset' started by Sackie, 4th Sep, 2015.

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What, in your opinion is the #1 reason that stops many investors from building a large portfolio?

Poll closed 4th Jul, 2016.

  1. 1. lack of funds

    14 vote(s)
    16.3%

  2. 2. lack of property invesmtent knowledge

    16 vote(s)
    18.6%

  3. 3. lack of servicibility

    22 vote(s)
    25.6%

  4. 4. current mindset

    29 vote(s)
    33.7%

  5. 5. can't find opportunities

    0 vote(s)
    0.0%

  6. 6. Partner stopping them

    3 vote(s)
    3.5%

  7. 7. Lack of professional contacts

    0 vote(s)
    0.0%

  8. Lack of time to chase deals

    2 vote(s)
    2.3%
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  1. Sackie

    Sackie Well-Known Member

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    What do you think is the main, #1 reason that above all else, causes investors to stop building a large portfolio assuming that is their goal. I know 'large' is subjective, but lets assume over $3,000,000. I know there will be multiple answers, but please choose the one you think has the biggest impact.
     
    Last edited: 5th Sep, 2015
    Sackie, 4th Sep, 2015
    #1
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  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Not for me personally, but couldn't another reason be that their goals have already been achieved prior?
     
    D.T., 4th Sep, 2015
    #2
  3. EN710

    EN710 Well-Known Member

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    Mindset and tolerance to risk for me.
    A $3M loan will scare me (unless I have at least hmm.... 30-40% equity?)
     
    EN710, 4th Sep, 2015
    #3
  4. Sackie

    Sackie Well-Known Member

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    True, I could have added that in. I guess I was just assuming that this was a goal that was unfulfilled that they still wanted to be fulfilled.
     
    Sackie, 4th Sep, 2015
    #4
  5. D.T.

    D.T. Specialist Property Manager Business Member

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    Didn't respond to poll though, nothings going to stop me busting through 3mil barrier.
     
    D.T., 4th Sep, 2015
    #5
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  6. aussieshorter

    aussieshorter Well-Known Member

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    I voted mindset, of which a significant factor is fear.
     
    aussieshorter, 4th Sep, 2015
    #6
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  7. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Mindset 100%
    The correct mindset overcomes all other deficiencies on the poll
     
    Ace in the Hole, 4th Sep, 2015
    #7
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  8. SouthBoy

    SouthBoy Well-Known Member

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    I thinks its lack of knowledge and hearing too many doom and gloom stories from media, friends and family.
     
    SouthBoy, 4th Sep, 2015
    #8
  9. Sackie

    Sackie Well-Known Member

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    I have the same opinion as you.
     
    Sackie, 4th Sep, 2015
    #9
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  10. wylie

    wylie Moderator Staff Member

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    For us, it comes down to not needing more than we have. Our accountant said something last week that made me stop and think. He said "Don't cry poor. You are not poor. You have options."

    I have always felt a bit poor because we have always had large debt (and it has never bothered me because the underlying assets were there if we really needed money). I think all our married lives we have just plugged away, never feeling rich, and plenty of times having to borrow money from my parents rather than sell a house just to get us through a skinny patch, but now we have enough to see us through.

    We don't hold a lot of properties, so our rents are not as high as the same amount of assets comprising lesser value IPs. So if I compare what we have to someone with more properties, I wonder if we should sell up and buy three times the number of cheapies and just live off rent (more rent that we get now).

    We don't really compare what we have with others, but I do feel we've not tried very hard when I read what some on this site have, or will have. But we've never wanted to work that hard to get more money, that we don't really need except to leave to our kids.

    Instead, we are getting a DA and will sell the block with the DA and clear our debts whilst holding the original houses, or sell the original houses and use the funds to do the build, or some combination of that.

    We could bust a boiler to get more, but we have enough. We are content.
     
    Last edited: 4th Sep, 2015
    wylie, 4th Sep, 2015
    #10
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  11. Esh

    Esh Well-Known Member

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    I voted lack of serviceability. If I could I would have had it done yesterday. Learning as much about it as I can through this forum, I'm lucky that my partner knows more about this field than I do but that is a goal we are working towards
     
    Esh, 4th Sep, 2015
    #11
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  12. Sonamic

    Sonamic Well-Known Member

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    Mindset controls all.
     
    Sonamic, 4th Sep, 2015
    #12
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  13. Perthguy

    Perthguy Well-Known Member

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    Maybe some investors simply don't want a large property portfolio. One of my mates has a very impressive share portfolio, a very nice IP or maybe 2 now and sizeable super. I don't think there is anything wrong with that.

    Perhaps the right answer is: what is stopping an investor who wants a large property portfolio for building a large property portfolio. Then you are looking at: servicibility, structuring, mindset, strategy.
     
    Perthguy, 4th Sep, 2015
    #13
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  14. wylie

    wylie Moderator Staff Member

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    This kind of sums up so much better what I was trying to say :).
     
    wylie, 4th Sep, 2015
    #14
  15. HUGH72

    HUGH72 Well-Known Member

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    Knowledge, you can have a great mindset but is it enough when you don't know what you don't know?
     
    HUGH72, 4th Sep, 2015
    #15
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  16. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Anybody who says they would rather have 3M equity in property instead of 10M is a liar, all else being equal.
    What they are really saying is that the work/effort required to get to 10M seems too hard or will take too long, and the extra money is not really worth the sacrifice of extra the effort/time.
    This is completely mindset.
    Making 1M a year for one person may take the same effort as it takes another to make just 100k a year.
    The difference starts and ends with mindset.
    Everything in between is a result of adopted mindset.
     
    Ace in the Hole, 4th Sep, 2015
    #16
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  17. Sackie

    Sackie Well-Known Member

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    Yeah I hear what your saying, maybe the question could have been stated better. What I was trying to ask was what you said " what is stopping an investor who wants a large property portfolio from building a large property portfolio"?.
     
    Last edited: 4th Sep, 2015
    Sackie, 4th Sep, 2015
    #17
  18. Angel

    Angel Well-Known Member

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    I think we could achieve more given our knowledge and skillset. However we have been hammered by factors outside our control.

    Don't scoff.

    We were both born into the wrong families and we have been able to overcome the poverty mentality quite easily ( I think??). The genes we were born with are another factor and no amount of education will make us any more employable or any more able to earn a higher income which would thus give us more serviceability. We cant change our gene pool and I am not yet aware of any way to completely overcome the mental health issues. The effects can be reduced but I dont know of a way to completely remove the damage originally produced. If there was, then it wouldn't be called a disability.
     
    Angel, 4th Sep, 2015
    #18
  19. Sackie

    Sackie Well-Known Member

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    I have to agree with you. I know its not a popular stance to have, but nonetheless I agree.
     
    Sackie, 4th Sep, 2015
    #19
  20. Sackie

    Sackie Well-Known Member

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    I hear what your saying and there are definitely some factors outside our control that can make it much more challenging for us generally, though I do think people in those particular circumstances are not a large majority imo.
     
    Sackie, 4th Sep, 2015
    #20
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