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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    Vaucluse, Sydney.
    Yes I agree mate. Especially if your goal is extremely lofty, eg top athlete, agent, businessperson etc etc. To be top or extremely successful in something there usually will need to be a period (not your whole life) of some imbalance. This theme is repeated in almost every autobiography of highly successful people I can remember that I have read. just my opinion.
     
    Sackie, 5th Sep, 2015
    #41
    Hanison and Taku Ekanayake like this.
  2. el caballo

    el caballo Well-Known Member

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    21st Jun, 2015
    Posts:
    211
    Location:
    Australia
    Concur 100%.
     
    el caballo, 5th Sep, 2015
    #42
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  3. WattleIdo

    WattleIdo midas touch

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    Location:
    Riverina NSW
    on this we agree.
     
    WattleIdo, 5th Sep, 2015
    #43
  4. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    Everyone's opinion is valuable. ;)
     
    Sackie, 5th Sep, 2015
    #44
  5. Harro

    Harro Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    121
    Location:
    NSW North Coast
    What about the fact that property isn't the only asset class to invest in.
     
    Harro, 5th Sep, 2015
    #45
  6. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    Yes true, but the poll is really referring to the asset of property.
     
    Sackie, 6th Sep, 2015
    #46
  7. keithj

    keithj Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    177
    Location:
    Blue Mtns
    There's a couple of reasons I can think of....
    1) What stops some is that they eventually realise that their end goal isn't to build a large property portfolio - their end goal is actually to have as much quality time on this planet as possible. Simply owning a house puts you in the top couple of percent in the world, owning a couple of IPs as well must put you in the top 0.01%.

    There's a trade off between quality time alive & portfolio size, the law of diminishing happiness dictates when you want to stop accumulating & start enjoying quality time. A 'large' portfolio is the wrong side of that boundary for many.

    It would be easy to think that someone who is choosing a 'large' portfolio over quality time with family needs to have a long hard think about their mindset.

    2) Risk. Some people broaden their investing horizons enough to realise that accumulating property is a fairly slow route to freedom, and for most servicability gets a lot harder after 3-4 (APRA is now ensuring this). A large portfolio requires large debt, which tends to increase risk. Diversification will reduce the IR risk, and also market risk, and asset concentration risk. Most would rather have 2 'medium' portfolios of different asset classes than a 'large' portfolio of a single asset class.
     
    keithj, 7th Sep, 2015
    #47
    Harro likes this.
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