Episode Details

One of the most difficult aspects of being a property investor comes from the fact that we have competing emotions depending on where you are in the property cycle.

There's fear and greed, overconfidence and loss aversion, panic and euphoria.

We're told there's nothing more important than being disciplined when getting involved in property and investment, but it's not easy when the emotions hang in there.

One of them is fear of missing out, like a lot of people are currently experiencing as they feel the market is moving faster than they can get in. And there there's fear of getting in, which a lot of people were experiencing last year when people were talking about property Armageddon.

So today I have two segments: the first one a chat with property researcher John Lindeman and we have a little bit of a general chat about FOMO and what you should watch out for.

Then I'll share the ten FOMO mistakes I'm seeing many property investors make, to ensure that you don't make them as well.

So, today's podcast will be useful for you whether you're looking to get into property or you're already in property anyway, because as we go through these things, there are a couple of great fundamentals and lessons I'd like you to know.

Some of the Topics John Lindeman and I Chat About:

• FOMO is an emotionally based desire.
  • We don't want to miss out on something someone else has.
  • It's similar to greed.
• You have to respect the market.
  • When things settle down, some people will find they bought the wrong property or overpaid.
• FOMO can move a boom to a bubble when too many investors become involved.
  • That's why it's better to buy in areas that are mostly owner-occupiers.
• There will always be another opportunity, so buy with your head, not your heart.
• Big FOMO mistakes John Lindeman currently sees:
  • Emotion that takes over decision-making.
  • Finding it difficult to wait.
• Have rules that can help you rationally you decide which property to buy so that emotion doesn't take over.

10 FOMO Mistakes

• Not really understanding the nature of the property cycle
  • You need to remember that the property market always moves in cycles. So after a boom, you will see a downturn.
• Acting with heart and not head
  • Allowing your emotions to cloud your judgment means you are more likely to over-capitalize on your purchase, rather than negotiating the best possible price and outcome for your investment goals.
• Diving in or Dithering
  • FOMO causes some investors to act too impulsively, while others freeze up out of too much caution and never act at all.
• Not adhering to their property strategy
  • Successful wealth creation through real estate requires you to set goals, determining where you want to end up, and then devising a cohesive plan to get there.
• Changing their investment strategy.
  • If your aim is to gain financial freedom through property investment this is a critical time to stick to a proven strategy.
• Speculation over Patience
  • Property investment is not a get-rich-quick scheme. Doing it successfully requires patience.
• Not having a finance strategy.
  • Strategic property investors have a finance plan to allow them, not just to buy one property but the next and the next.
• Compromising on Location
  • A property's location will do 80% of the heavy lifting when it comes to capital growth, so don't compromise on it.
• Taking advice from the wrong people
  • You should take advice, but from proven experts, not just anyone with an opinion.
• Buying the wrong property
  • Don't make a snap decision on