The five biggest excuses we hear – and why they’re rubbish.
At Binvested, we hear so many excuses as to why people won’t buy an investment property that we were able to group them into five different categories.
And, do you know what we found? It’s not the excuses that hold people back – it’s the reasoning behind them.
1) Excuses born from opinions and fear.
Nathan Birch has heard a lot of excuses over the years. As a buyer’s agent and the head of Binvested, the renowned property investor gets bombarded with them every day of the week.
But, luckily, Nathan can see beyond these excuses. And one of the biggest things that drive them is fear.
“The fear of failure cripples people,” says Nathan.
He says, many people are scared they will lose all of their money by taking a chance and investing. However, if they could change their mindset, they would see that wasting 40 years of their life not building wealth is also a big risk.
“If you’re stuck in a fearful spot you do nothing but you are still uncomfortable.”
Often fear can drive people to form concrete opinions about things. This enables them to justify their inaction by blaming other circumstances or people.
“I find that people who are more successful listen more,” says Nathan.
These people are more open to absorbing information and making informed decisions.
2) Excuses born from the media.
There are plenty of people who won’t buy property at the moment because the market is getting a bad rap from the media.
They think prices will plummet – and so they don’t want to buy until the market is booming.
“People are too obsessed with the negativity in the market,” says Nathan.
He sees the market in a whole different light – one of opportunity.
“I’ve been waiting for this market.”
He says, this is the type of market where you can really expand your portfolio by buying properties for cheap – but most people are either unprepared to take action, or too scared.
Not too long ago, there were a lot of people complaining about prices going up so much that they couldn’t afford to buy a house. Now, prices have dropped but people are too fearful to buy.
Nathan says, if he hadn’t made a big effort to expand his portfolio in the lead up to the GFC, he wouldn’t have been able to retire from the workforce at a young age because he would have only had two properties instead of 25.
“I knew that buying in that market was the right thing to do.”
“I had clarity in the decisions I was making.”
He says, people should look beyond the doom and gloom stories of the media to examine the bigger picture. It is in the Government’s best interests to step in before prices drop past a certain level. If they didn’t, the banks would risk being in negative equity and the whole economy would suffer.
“We are already starting to hear that state governments are losing revenue from less property transactions.”
Plus, since there are less properties being built, there will be less rental properties on the market. This means rents may start to rise.
“If you are picking properties up cheaper and getting a higher rental return … why wouldn’t you want to be doing that?”
3) Excuses born from external factors.
A lot of people think they are too old or too young to buy an investment property. Others are thinking of getting married or having a baby. Then, there are those who think they’ll just wait until Spring or they’ll just save up a bit more…
“There’s a lot of misinformation out there,” says Nathan.
“A lot of that stuff comes from lack of education and lack of knowledge.”
People like to play it safe – but then they don’t end up doing anything.
Nathans says that he too likes to play it safe – by making educated decisions based on a logical understanding of the market. This way he is taking action to build wealth and minimising risk along the way.
Before assuming that you can’t invest due to external factors, it is helpful to ask why those factors should stop you. For instance, does age really mean you can’t invest? Maybe it just means a different sort of strategy…
4) Excuses born from analysis paralysis.
Some people make excuses from lack of information. Then, there are those who have done so much research that they can’t move forward. They are lost in a maze of different strategies, possible scenarios and a wealth of contradicting advice from experts and loved ones.
This condition is known as analysis paralysis.
Nathan says he gets the most joy out of helping these people because they want to get ahead so much that they research everything.
“They become an expert – but they’ve never done anything,” he says.
They don’t have that master plan of “who am I, where am I at and where am I heading?” that can enable them to achieve their goals.
In other words, they have the knowledge but not the know-how.
But, what good is all that research unless you put it to good use? Often analysis paralysis is born out of fear about what might happen or about whether you have chosen the right strategy. Having the right team of experts around you can go a long way in helping you identify the best way forward.
5) Excuses born from finance issues.
A lot of people walk into Binvested with the belief that they can’t afford to start their investing journey, says Nathan. But, by the end of the session they walk out saying, I didn’t realise I could do this, this and this.
For these people, it was the belief that they couldn’t afford to invest that was holding them back – when they didn’t even realise there were other ways around it.
Education and mindset go a long way when it comes to becoming successful. You might spend your whole life assuming things are impossible and never get anywhere. Or, you could do a bit of research and discover a whole host of options are there for you that you never knew existed.
For most of these excuses, a good dose of reality is all that is needed to remove the fear and uncertainty and help you to see things logically again.