When we talk with our investors, there is always no sense of urgency.
People often want to take their time and think about it and prefer not to be pushed by the sale consultant.
Is it making sense or it’s a legit action?
Well, people should never be pushed to make a decision to buy, especially when they are going to commit on half a million or a million-dollar product. It is different when you buy a TV or lunch when your spending is low.
But what is the problem?
Thinking about buying or taking the time won’t change anything.
In 3 months, people often find themselves in the same situation. “We don’t want to rush”, “This is a lot of money”, “let me think more about investing”, nothing will change, even if we have one year to think about it.
There are always 3 matters that are not being discussed.
- A price that does not suit to the budget.
- Product or service that may be a concern.
- They do not feel comfortable to do business with the current sales representative.
Everything is falling into one of the above.
If the price is suitable for the budget, lending amount and LVR.
If the service or product is excellent and it’s the only one which will give you the right asset to invest in, with future investment projection.
If the sale representative is dedicated to the mission and will support you all the way through.
I don’t see any problem with that, and I would turn it to complete urgency in my mind. If I am not doing it today, I am losing money anyway. I am losing the equity growth, rental income and tax gain.
If we are on this property game, we should be proactive and always look for the opportunities to reach our goals. Never over-commit, but leverage toward your wealth, and invest at least 60-80% of your savings regularly.
One or two properties in your portfolio won’t take you to where you want to be in terms of serious wealth. It will be better than nothing, and surely you will increase your wealth. However, if you do not expand your property portfolio to multiple assets in a way you can sell a few properties on the long run and keep the other to give you passive income and equity for generations, you are wasting your time.
The risk research with all its stages; statistics, analysis and physical risk inspections with your risk profile strategy will determine if the asset is a good buy and if it is likely to perform in the short term or year by year. This is the only tool that will give you confidence that you bought well in any market condition, downturn or hot market! If your excuse is only because of you not confident enough that the sale person and his knowledge can secure your purchase, depending only on the risk validation!
If you manage to accumulate a few properties with the approach, you are likely to have a fast turn over.
Real estate is a long term game, and every property or piece of land will increase in value in some stage. However, we can make it run faster with proper risk validation and support. We don’t want our purchase will perform only 20% in 15 or 20 years. This will be an average investment, and unfortunately, this what we get when we deal with many investment firms today. The look and the feel and the marketing materials often catch us emotionally and this exactly how they increase sales revenue to sell real estate without the focus on real investment.
We want to get an asset that will perform every year at least 3-4% growth and in 8-10 year to make a substantial acceleration of nearly double in value.
Contact us if you have any questions. We will appreciate any feedback or any experience you dealt with the above.