Hello! My name is Ben Everingham and today we’re going to talk about the five most common challenges that investors in the Australian property market have to face and have to overcome to become successful in their own investment journeys.
The first of those five things we’re going to talk about today is limited time, the second one is lack of confidence, the third one’s gonna be information overload, which I’m sure most of us on today’s video can actually relate to. We’re also gonna talk about the fourth one, which is limited skills, and the fifth one being no mentor or coach. So we’ll walk though all of these today, and I’ll show you how these things are relevant for different people at different times in the market.
In terms of the first one, limited time. From the hundreds of investors that we get to talk with every month at Pumped On Property, limited time is one of the major things that we keep coming back to. So for those of us that still need to work to create a living for ourselves, limited time is huge because lets say that you’ve got forty hours a week that you’ve got to spend at your job, and on top of that you may have the time in the morning to get ready, the time in the afternoon to wind down, the commuting time as well if you’re working in one of the big capital cities in Australia. So pretty quickly eight, ten, eleven hours of your day’s already chewed up. And then for those of you who are super motivated, like myself, when I was working for somebody else, I would go home at night, or get out on my lunch break and hustle and jump on realestate.com and domain and read the magazines and watch the videos, but time at the end of the day is huge. And its not easy to overcome, so time’s always gonna be a challenge. And then trying to fit the mid week inspections when you’re looking for property, or the weekend inspections and chewing up your weekends with your family, or your friends, or your partner is one of those challenges that a lot people must overcome to achieve what they want to achieve.
The next one and the second point is lack of confidence. So lack of confidence is a huge one and it affects so many people, and this is one that’s personally affected me all the way through my investment journey. No matter how many properties I’ve bought, for myself or for my clients. You know, where you come from affects where you end up. So there’s always that niggling voice in the back of your head somewhere saying ‘Are you over exposed?’, ‘Are you doing it the right way?’, ‘Have you missed something?’, ‘Is there a better opportunity in the market place?’. And so those things creep up and as an investor and as you buy more and more properties over the time, you learn to deal with those things better and you do get confidence for moving forward. And at the end of the day, the property market is fairly forgiving, if you’re doing the right fundamental education skills. But it can also be really painful for those people who make mistakes and some of those mistakes might be buying an overpriced property off a property marketer, for example. Or purchasing in a mining town, and then that mining town disappearing. So that lack of confidence is something that you’re definitely gonna have to overcome as an investor. But theres ways of doing that, and most of that is just through education and through surrounding yourself with the right types of people and moving forward from there.
The third thing I want to talk about today is information overload. So I’m obviously talking about property today. There’s so many people online, in magazines, in books, at webinars, at events, talking about property and the industry. And you’ve got to take everything that all of us say with a grain of salt and create your own philosophy and your own property investment strategy. So I might be talking about properties where you can get decent capital growth, good manufactured growth potential, good rent return potential and buy them at the right time in a rising market. Where somebody over here is talking about developing, and someone else is talking about options, and someone’s talking about renovating, someone’s talking about buying high quality city property with the potential for growth. At the end of the day, it’s not one strategy that works. There’s plenty of ways to get to the same goal, but your job is to piece together all of these different ideas and different strategies and create something that is uniquely your own that you can rinse and repeat until you get to your goal. And at the end of the day, your goal is basically determined by the path of least resistance so that you can find something that works and just systematically work on that process until you get there.
The fourth thing that I wanted to talk about today is limited skills. So when I was buying my first investment properties, like a lot of people, I bought my first property four kilometres away from where I grew up. I was just lucky that I bought it in Sydney. And I bought my second property up on the central coast in New South Wales, which again, was only one and a half hour drive from my own house. In terms of those skills, people really rely on information from people that might not be the right people to give you that information, like friends and family members that don’t own investment property, or maybe haven’t replaced their income through investment property. And theres plenty of people out there giving free information and advice, as well, with your “best interest” at heart. So in terms of building those skills, I say slow down to speed up. So what I wish I’d done, looking back now, is learnt more before I got started so that by the time I was ready to get started, I could make the right decision and could’ve set myself up a little bit better. But it’s super easy, with hindsight and retrospect, to look back at what you could have done. Understanding the fundaments around ‘How do I identify the right state to invest in, the right market, what is the right type of property in that market before I even get to the market place to begin looking for properties?’ and then secondly to that, taking a step right back and going ‘What is the right strategy fro me personally?’. ‘What are my goals?’, ‘What are the challenges I’m facing in my life financially, personally, relationship wise?’, ‘What are my property investment goals?’, ‘What’s my financial situation look like right now, and where do I want to be long term?’. So identifying where you are and where yo wanna be before you get started is extremely important so you know that the next property you buy is just part of the jigsaw puzzle working towards that bigger goal. And I think that’s really, really important.
The last thing that I wanted to talk about today is the lack of mentors or coaches. So again, there’s so much information in the property industry and so many people selling different services, or coaching, or mentoring, or products. It’s kind of difficult to identify what’s important to you. And sometimes these mentors and coaches don’t have to be people that you pay for, they can just be somebody that you’ve identified in your life. If you wanna buy two properties in the next two years, maybe go talk to five different people that have bought two properties in a couple of year period. Or you want to get to ten, fifteen, twenty properties in the future, then go surround yourself with a team of advisers and people that have already been there and done that, because those people have learnt some things that you could never learn buying one or two properties, which is gonna save you so much time, and money, and resources over the long term, as well.
So just to recap, the five things that we’re talking about today which are the common challenges that people face in this industry are limited time, lack of confidence, information overload, limited skills and no mentor or coach.
So I hope you can relate to a couple of those things, I know I can definitely relate to all five of them at different stages of my journey. If you ever need a hand beginning to identify a strategy, or trying to understand what that first step might look like, I’m more than happy to book a one on one strategy session with you and begin that conversation. No obligations, complimentary session where we can sit down on the phone for one hour and identify whats important to you, where you wanna go, and bounce ideas off together.
Until next time, stay hungry! thanks a lot guys. Bye!