6 Common Things That Hold People Back From Investing
Have you thought of the things that hold people back from investing in property and achieving great results? Why is that many people have the means to invest, but never do it? If you have read the post on how my property investment journey started you may have noticed that when I made a decision to go ahead with property investment I had people around me with all the reasons in the world why I should not do it.
The obvious difference between the successes of some people and the perception of others made me puzzled at first and wanting answers later. I have written a post highlighting the things that set the successful property investors apart as I was hungry to know the secret sauce recipe. Understanding the behaviours of successful people was crucial for me, yet understanding the other side of the coin is just as important. Below I have listed 6 common reasons that hold some of us back from making the move.
Fear of failure
I believe that this limiting belief originates from the lack of confidence in our own abilities. We tend to think that we are not capable of making the right decision that would give us the result we want. Some of us fear being ridiculed for making a bad decision and that on its own is sufficient to never even consider making a decision.
We doubt our abilities as most of the information around us is negative. We have been told for as long as the television is around that the property bubble in Australia is about to burst. Our neighbour perhaps told us a horror story about someone he knows who invested in mining towns of WA or QLD and went broke. The list goes on.
Whatever we fear, it is likely to have its roots deep down in our past. We have to find courage to accept it, get over it and leave it where it came from. If we still find it challenging there are other ways around it. One option is to start small and build your confidence as you go, you will eventually see that there is nothing to fear. Another option is to get a great buyer’s agent by your side. This should help you to remove stress, fear and the feeling of uncertainty.
I am not good enough
I am not smart or talented enough. Property investment is complicated. I do not know enough about it or how to do it.
The truth is that people like to come up with excuses as it makes us feel justified. In reality, you do not need to be smart, talented or special in any way to invest in property. Property investment is actually simple, but it is not easy. I know people from all sorts of backgrounds, cultures and income levels that have managed to succeed with property investment. It is definitely accessible to a lot more people than have currently adopted it as a vehicle for their financial success.
To overcome this limiting belief I suggest to:
- Start with a good property investment book (see the Resources section) and get comfortable with general property investment concepts.
- Start listening to a great podcast that host some of the most successful property investors in Australia – Real Estate Talk
- Surround yourself with a team of experts that will guide you through the process (including a great buyer’s agent)
- Go and get it!
Investing is risky
This is probably the most common reason the people feel comfortable voicing. The usual concern is that we can lose money on our investments, hence property investing is inherently risky. That is right, but so is taking a plane, driving a car, playing football and many other things we are doing day-to-day. I really get it, I am scared of loosing money too. In fact, I do not know anyone who is not.
If you are not willing to risk the unusual, you will have to settle for the ordinary.” – Jim Rohn
We need to accept risks in our lives and learn how to deal with it. After all it is part and parcel of living. The good news is that those risks can be greatly reduced by following a proven investment strategy and surrounding yourself with a great team that you can rely on
We are fortunate enough to live in one of the wealthiest countries in the world. This is definitely a great privilege as it represents an abundance of opportunities and ways to succeed in life. The grain of salt it comes with is a certain level of comfort which stops some of us from pushing ourselves forward. We get used to an easy, comfortable and secure lifestyle and any change seems like a disruption. The absence of a strong reason or a need to get out of our comfort zone puts a cap on our financial and personal development.
Complacency is dangerous and a difficult one to cure. It first of all requires that we recognise it and accept it, which is the hardest part I think. Since it originally comes from some level of success that we have experienced in the past I suggest you celebrate it and then put it to the side for good. This should give you room for getting clear on your purpose and setting new goals. Commit to the goals with an excitement to achieve them and get your other half to push you and remind you of your ‘why’ every time you fall back on your comfortable habits again. Getting the support from your spouse provide amazing levels of energy to last you a long run!
Property investment is only for the rich
There is a common misconception that buying property these days is beyond the reach for some of us. Whilst I do not want to say that buying real estate is cheap, it is definitely more attainable than most of us think it is. There are number of stories of guys and girls in their 20s buying real estate, so if they can do it – so can you. I know a librarian who owns 4 properties in Sydney, not bad right? It is not about how much you make, it is about what you do with the money you make. This almost sounds too simple to be true, yet it is!
Financial discipline is absolutely paramount in achieving great results. I have come across the ‘Pay yourself first‘ concept when I read the Rich Dad Poor Dad book written by Robert T. Kiyoshi. This approach may seem counter intuitive at first, but it really works wonders if you stick to it.
Disagreements with your spouse
Property investment is a big decision and requires you to be on the same page with your spouse. This can be tricky if your risk tolerance, comfort levels and life priorities are different.
Given that you share the same goal(s) in life, you should be able to smooth out all the disagreements by simply having an open conversation about the ways to go forward. You need to jointly come up with a plan and once you do – stick to it and support each other on the way.
I wish you a very successful and happy investing!
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