10 Things I’ve Learnt (Part 2)
With over twenty years of experience investing for myself, over the next few weeks I’ll be sharing with you 10 things that I’ve learnt whilst on my property journey. Last week we began by discussing that there’s rarely just one way of doing things in property (read the article in full here), and this week we’re going to consider that: “Most Things That We Worry About Actually Never Happen”.
When I engage with new investors or “would-be” investors I find that many often take very little action in the early days because they’re overly concerned about getting it wrong. They worry about what might happen if things don’t go exactly as they have planned – and the consequence of this is that they usually find themselves not taking very much action at all.
In my experience, the truth is that most of the things that we fear never actually happen at all. In fact, if anything does happen, then it’s usually something which we haven’t even considered; something “unexpected” rather than the niggling little worries.
Obviously, there are some measures that can be taken to help us protect ourselves and of course, we can take additional steps to minimise the risks regarding the things that are causing us particular concern. However, what we must be careful of is that these concerns don’t prevent us from taking action. (The fail safe and default mode for some is not to do anything at all so that nothing bad can happen in the first place).
We all know that property is not without its risks, however, there are some obvious risks which we can evaluate even before we start, and measures that we can put in place to mitigate them.
In my opinion, the best way to ensure that we don’t mess things up completely though, is to educate ourselves.
It goes without saying that conducting thorough due diligence is the best step towards safeguarding ourselves, and possibly working with a mentor who has been on a similar journey and who has overcome similar hurdles and fears is a close second.
But, you will probably find that no matter how much you educate yourself, there will probably still be some stuff that you’ll worry about – and this is stuff that you really shouldn’t worry about at all.
An example of this is the fear that the property market will crash at some point in the future. Whilst this is a very legitimate worry, we shouldn’t let this stop us from doing property.
Yes, at some point this is likely to happen, but in my opinion, rather than let our unspoken fears hold us back, why not take steps to mitigate the risks in advance. For example, buying for cash flow, buying at a discount, making sure all finances are secure and sound, etc.
In essence, don’t let “worry” stop you from taking action. In fact, I wouldn’t even worry about the stuff that you’re worried about because it’s unlikely to happen. What is more likely to happen is something that you probably haven’t even thought about – and if you haven’t thought about it then you can’t really deal with it. So instead, you may as well just crack on and get on with it.
Peter Jones B.Sc FRICS
By the way, I’ve rewritten and updated my best selling eBook, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same. For more details please go to ThePropertyTeacher.co.uk