Education and Action
Education and action are two of the most important factors needed to be successful in any avenue of life. In order to do anything significant an individual needs to first understand it and then take action. The same can be applied to property investing. The difference between a successful and mediocre investor is simply their education and action. A successful investor places their education at the forefront of their investing journey and takes calculated actions when necessary.
Why is Education so Important?
Successful investing is achieved by making informed, unbiased and unemotional decisions that work towards achieving financial goals. A lack of education will increase the likelihood and susceptibility of mistakes taking place hindering financial progression. When looking into property investing it is vital to engage in extensive education around basic economic principles, the current market, and key property investment concepts. In fact, across all facets of life education should be at the forefront before any action is taken. Take a doctor, for example, a prerequisite to becoming a doctor is tertiary education. This means an individual must study extensively before being allowed to practice in this profession. A similar approach should be taken within property investing. Property is an illiquid asset meaning it takes time and money to buy in and out of the market, so a poor investment decision can be detrimental to an investor’s ambitions.
The Credibility of Your Information
Education is foundational but the creditability of your information is just as important. Many people have varying perspectives on what will happen in the property market, where to invest, or what investment strategy to adopt. It is important to understand and recognise that certain people have some form of bias or a hidden agenda.
Potential misinformation can stem from:
- Family and friends who lack understanding and don’t invest in property.
- People in the real estate industry who lack knowledge of investment and might have hidden agendas.
- Property spruiker’s who identify as experts and sell assets to easily deceived investors for their own financial incentives.
- Mainstream media publish misleading content to attract attention.
Each of these groups can inadvertently or voluntarily misinform investors into making poor investment decisions. However, the final decision and the repercussions of these decisions are left with the investor. It is the investor’s responsibility to ensure they are the one who takes control of their investment journey and educates themselves. All advice should be taken with a grain of salt. Developing a critical thinking approach to learning is necessary to cut between fact and fiction.
Although education is foundational to success, don’t get caught in the trap of “analysis paralysis” where you fail to take action on your goals. Some people can over analyse a property and fail to take action based on the unknown of what may occur.
Education is paramount and once established can enable the investor to identify what properties will work towards the investor’s objectives. Ensure you have the confidence in your understanding to take action when the right deal comes to the market and know how this will fit into your overarching plans. After becoming educated, starting your journey is just as essential. If you don’t start, there is a 100% chance you will fail. Sometimes, you have to do things you have never done before to achieve things you have never achieved. Be confident in your knowledge and understanding to take action.
If you are serious about investing and want to be build lasting wealth develop your education. It is so frequently mentioned because it is so integral to success. The difference between all investors is simply their understanding of how to invest. Develop an education that will help you to make the most informed investment decisions you can. Once you develop a strong understanding, never stop learning. To continue to achieve success you must embark on lifelong learning. Constantly challenging your own beliefs and how to optimise your investment approach and strategy. When you have established a strong understanding of property investing don’t forget to take action. Taking no action will result in guaranteed failure. Take action and be confident in your own understanding to make the best investments you can.