When it comes to property investment, it’s easy to jump to conclusions, imagine the worst, overgeneralise or focus on what is wrong instead of what is right. The next time this happens, you can save yourself a lot of stress simply by changing your thinking habits.
You might be attracted to property investment in the hopes of building wealth, but when presented with challenges like buying the right property or coping with tenancy troubles, niggling doubts eat away at your confidence. It’s essential to realise that when you become distressed at an external event, your anxiety and stress is not due to the event itself but to your view of it.
By having positive thoughts and viewing obstacles as opportunities, we can use our talents to create solutions instead of dwelling on what can’t be changed. At any moment in time, we have the power to change our viewpoint of the world around us.
Did you know?
The concept of stress first emerged in the field of physics where it was used to describe a pressure operating in a certain direction against an object which resists that force. The definition was broadened in the 1930s when an endocrinologist found by chance that artificial hormone compounds and stresses in lab rats caused deterioration of the thymus glands and produced ulcers and other symptoms.
Here are some of the common issues that cause anxiety among property investors – and our advice on how to turn this around.
Feeling overwhelmed by information and choices
New viewpoint: Tell yourself you don’t need to know everything. Some successful investors started with far less knowledge than you. Cut through the noise of conflicting advice by surrounding yourself with independent and unbiased professionals you can learn from.
Ask yourself these questions to assess the credibility and quality of advice from property investment advisors: what will they get out of helping me? Is the deal too good to be true?
Trusted and reliable buyers’ agents, mortgage brokers and investment advisers should take the lead in helping you achieve your goals but not push you into a decision that isn't in your best interests.
Worrying about not getting tenants
New viewpoint: This is a reasonable worry to have because it will help concentrate your attention on how important it is to choose the right property.
Give careful consideration to rental yield figures and vacancy rates. Make it a priority to buy in a suburb where there is a steady and consistent rental demand. Then do your research on the demographics of renters in the area to ensure your property is attractive to tenants.
Stressing about qualifying for a home loan
New viewpoint: Look to improve your credit score <link this to ‘bad credit and how to clear it’ in this issue of the newsletter> as this will help widen your options. Keep in mind that a large bank balance is not a prerequisite for affording an investment property provided your cash flow and/or equity meets acceptable lending standards.
Your Yellow Brick Road mortgage broker is a valuable source of expert advice for help with assessing your borrowing capacity and funding your investment purchase.
**The information on this article contains general information and does not take into account your personal objectives, financial situation or needs. If you require further information don’t hesitate to contact the branch directly.