Episode Details

If you want to become a more successful property investor, today's show is just for you. I'm going to discuss how to become more successful as an investor by discussing two separate concepts with you. Are all those other investors crazy? The ones who don't reach success? We're going to have a talk about that.

Then I'm going to share with you one thing you're going to have to change to get more successful.

Are all those other property investors crazy?

Around 8.6 million Australians bought a lottery or scratchy ticket in the last year. That's around 44.8% of our 18+ population. Who is buying all these tickets?

When you do the maths, you might think they must be crazy.

Fact is: No one is crazy.

The decision to buy a scratchy, a lottery ticket, or an off-the-plan property or a house and land package or whatever must make sense to them at that moment and ticks all the boxes they need to check.

I've often written about how we're not rational when making investment decisions – we're subject to behavioral biases.

I've been a student of behavioural finance for years trying to understand why investors keep making the mistakes they keep making, when the end results of their actions – the negative consequences of the decisions they make – seem so obvious to me.

People are often wrong, but few are crazy.

1. Be careful taking cues from other people when you have no idea what they're thinking

Many finance and investment decisions are rooted in watching what other people do and either copying them or betting against them.

But when you don't know why someone behaves as they do, you won't know how long they'll continue acting that way, what will make them change their mind, or whether they'll ever learn their lesson.

2. No one is crazy, including you.

But everyone justifies actions based on poor reasoning, including you.

Few people make financial decisions purely based on logic and by using research and spreadsheets.

The bottom line:

The fun part of behavioral finance is learning about how flawed other people can be.

The hard part is trying to figure out how flawed you are, and what stories make sense to you but would seem crazy to others.

That's why when making significant property decisions it's important to have a team of independent, unbiased advisors on your side.

Here's one thing you need to change to become a successful property investor

I've found that for most property investors to change their level of wealth, they must change.

Why is change difficult for many of us?

Because change makes us move out of our comfort zones. We tend to believe that if we stick with what we know, with what is familiar, then we won't get hurt. In terms of wealth creation, it's not what we know that's holding many of us back.

It's what we think we know that isn't so that is holding us back.

I'd like to discuss why many Australians are not as far advanced with their wealth creation as they would like to be.

What holds most of us back?

It's our Wealth Operating System ™ – our financial blueprint – the programming we received as a child.

It is no coincidence that your inner world creates your outer world. So, one of the first steps in change is changing your thoughts. How do you think about money, success, and prosperity?

Remember:

Your thoughts lead to your feelings, your feelings lead to your actions and your actions determine your results.

So, money is a result, wealth is a result, and your health is a result. Your results in all these fields have been caused by you – by your actions. The problem is for many Australians their thermostat is not set for Wealth. Many of us need to intentionally change our inner world – our way of thinking.

Firstly, we need to change the way we think about ourselves.