Yes data below prove that we are afraid to make high impact property investments
7.9% of Australians own just 1 investment property
1.42% of Australians own 2 investment properties
0.43% of Australians own 3 investment properties
0.16% of Australians own 4 investment properties
0.065% of Australians own 5 investment properties
0.068% of Australians own 6 investment properties
So, 90% of people that invest will never pass the first investment property, meaning 9/10 people you talk to that do invest only have one investment property, yet we turn to our friends and family for property advice.
Here I have collected a few points as to why people are so afraid to make high impact property investments
1. We are insecure from a job security perspective.
You will find one common thing in the 90% of the population who either don’t invest or have at the most 1 investment property. The common thing is they are too comfortable in their jobs thus hesitate to come out of their comfort zone to make high impact property investments. They are lazy, don’t upgrade their skills, and do the same mundane job. Their employer also knows that these people will not leave; there is no need to give them more than a 2% hike.
These people always complain that they are not earning enough, and they think that is the reason they never invest. Also, they are almost certain that if the current employer makes them redundant then they won’t be able to find another job. Thus stopping them to do multiple high impact property investments.
2. We are insecure that our investment property will not find a tenant.
People think only properties closer to the city find tenants, and anything slightly far off will struggle to find tenants. People fail to realize that rent is a demand-and-supply game. If your investment property does not find tenants, then that means that you have not priced it right (maybe reducing the rental by 10 dollars per week). Statistical data shows that there is seldom a property that will never get tenanted. Thus most of us fear making high impact property investments only because we don’t want to work on our rental pricing based on demand.
3. We are single-income earner households.
Many households are single earner households and we have seen that there is nothing wrong with being a single income earner. Many people want their partner to work, but maybe due to circumstances or situations, the partner cannot work. Some households think that the partner is not educated enough to get a decent job. That may not be entirely true, as we have seen such partners earning decently in alternative work such as child-care, family day care, providing food services, catering, cloth stitching, beauty parlour, student pickup/drop, online stores, and much other decent work.
It is just a myth that a partner needs to be highly educated to earn a decent job as statistics show otherwise. Hence maybe there is just a need to support your partner so that they can contribute to the household income.
4. We are afraid to take calculated risks.
We have seen people from big universities and degrees trailing behind average people. The big reason is not able to take calculated risks in life. Here we are not saying to go and gamble but to analyze and take calculated risks. Calculated risks include changing jobs, starting a side hustle, starting a business, or following a hobby or passion. This little effort will motivate us to make multiple high impact property investments and thus making our future secure.
5. We think only rich people or high earners make high impact property investments
This is a common myth that you have to be rich to invest as the reality shows otherwise that you have to make high impact property investments to get rich.
6. We are friends with the above 90% of the population and will never interact with the top .068% of the investors.
If you see around and check your friend list or the people you interact with regularly. You will find out that your friends are from the 90% of the population that either don’t invest or have only 1 investment property. Hence try to go further, and find out how you can meet the rest of the 10 % or .068% of the top investors. It can be more easy then you think. Try to make friends with people who are resourceful and who share information. You will find nearly 90% of the population either don’t know much or don’t want to share information. Hence try to find people willing to freely share information and life experiences that can take you further.
7. We follow the media
You will find that most people follow the media. There may be too much negativity in the media. Maybe there is an opportunity to make high impact property investments when the market is down or when there is low confidence in the market. Maybe there is not much juice left when the market is at its peak or when everyone is talking about investing. Hence keep a watch on such a situation. You can alternatively Join Property Buyers Group to get latest insights about property news from experts.
8. We are not always connected to the property market and randomly check it thus loosing valuable high impact property investments.
There is another main reason. We invest when the whole world is talking about it, the media is very positive, and the market is already nearing its peak. We buy at such a point that a slight correction sends fears down our spine. We slept when there was quiet time in the market.
9. Spouses/partners don’t financially collaborate for investments.
This is another point where spouses/partners don’t collaborate with each other towards a common financial goal. A well planned financial goal can lead to making robust future and add multiple high impact property investments in your portfolio. This is a controversial topic; hence we just wanted to touch upon it so that it generates some thoughts in the mind.
10. We are insecure that we may die
This is when different types of insurance come into play. We need to talk to a good insurance specialist and sort out our insurances and do risk planning before investing. We all have to die one day anyways so why to loose opportunity create wealth by making high impact property investments.
Disclaimer: Articles in this blog are just the author’s or authors’ personal opinions.
It may or may not be correct. Please do your own due diligence and seek professional advice according to your own personal circumstances. The author or authors cannot be held responsible/liable for any content in this blog.
