Short Term Vision

Short Term Vision

Hurting your property investing

Short term thinking is the biggest issue facing Australians considering property investment as a means of growing their wealth. Successful investors are able to push aside short term issues like;

• Interest rate changes
• Elections (local and federal)
• Foreign economic news (eg. Brexit)

Smart investors are able to carry on through these unnecessary distracting with a clear plan of action and a long term investment strategy.

The problem is far too many would be investors make their decisions solely on the present with influence from the past. Smart investors focus mainly on the future and most Australians don’t look at the future when investing simply because they have the wrong mindset or lack the necessary skills.

Investors for example have been shunning the Perth market because it is in decline – not massively but rents and prices have steadily dropped for the past three years. Normal investors would consider this market due to the decline but long term vision investors think differently.

They understand this is the perfect time to research property investments in Perth as a declining market means the prices are low and competition is usually relatively slim.

The essence of good investing is understanding the market cycles, identifying the markets with future growth drivers and buying when those markets are down and prices are low – rather than letting background events and a short-term vision hold you back.

Adapted from “Creating a vision for property investment” by Terry Ryder, founder, hotspotting.com.au on The Smartline Report, July 2016.