Do you know the adage: “the best time to plant a tree is 20 years ago, but the second-best time is now”? That’s pretty much how it plays out when it comes to making a decision about buying a property for the first time.
Buying a property is never a simple decision and this is regardless of the state of the market. The property industry is characterised by swings: sometimes a buyer’s market, sometimes a seller’s, and then there’s the different provincial or town swings, and seasonal highs and lows. Currently we are entering autumn, which in the residential property market, regardless of where you live in the world, ties with spring as the busiest periods in the year for home purchases.
The point is that there are always going to be forces in play that challenge and change market sentiment: uncertain economic times, the geo-political and local political landscape, world events, high interest rates, etc, all of which may be negative, but we cannot let that overtake the long-term positive aspects of homeownership regardless of what disruptors may emerge.
Buying a property for the first time is emotional, and certainly can feel risky. You are making a commitment to either root yourself in a particular environment, or if buying-to-let, committing to having financial ties. No matter how you rationalise a purchase, it is crucial that you first asking yourself one burning question …
… are you really ready?
While existing property owners are very helpful in guiding your decisions, such as citing the numbers, market trends, and financial strategies, an often overlooked aspect is your mindset. It sets the foundation for all the actions and decisions you will make along your property journey.
Here are some of the considerations:
- Positive thinking: This allows you to stay motivated and some believe that keeping a positive mindset attracts opportunities and abundance.
- Wealth attitude: You need to believe that property ownership is a wealth asset, even if at the beginning it may feel like a financial burden. As time passes and you own more equity in the home, you’ll realise you have a form of financial security. Not losing sight of that at the beginning means you’ll be building a wealth attitude.
- Overcome your fear: Think about why you are fearful and address that by finding solutions to the fear. If, for example, you are concerned about affordability, grow your savings first.
A wealthy future
The majority of the wealthiest people in the world have property assets in their investment portfolio because all realise that long-term it is an asset that realises true and ongoing growth in value. While stocks and shares may also be included in those portfolios, these can be volatile and reactive to money markets that can and do crash. Yet properties, even if affected by external factors, will ultimately endure through difficult times.
Think about these statements that we hear often enough in our daily lives:
- I wish I had bought that property when I had the chance 10 years ago. Today it is worth 20x the value.
- If I had started saving earlier, I would have been able to buy a property outright today.
- I regret not buying the property I rented back in the day … I still miss it.
- If I had known then, what I know now, I would today own many rental properties, providing me with an additional income.
Motivating a positive real estate mindset Critical and confident decision-making requires knowledge. If you have the right tools and information, a negative mindset is suppressed by that confidence and understanding.
These tips from real estate investors and others may help:
- “Buy land, they’re not making it anymore.” - Mark Twain, author and humourist.
- “The rich buy assets. The poor have expenses. The middle class buy liabilities they think are assets. The poor and the middle class work for money. The rich have money work for them.” Robert Kiyosaki, author of Rich Dad Poor Dad.
- “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” Andrew Carnegie, billionnaire industrialist.
- “Don’t wait to buy real estate, buy real estate and wait.” T. Harv Eker, author and motivational speaker.
