Know your emotional triggers when it comes to investing
As well as being a property investor, you’re also a normal human being with complicated feelings and varying emotions. Every person is different, and how you act and react is based on your personal life experiences.
But, sometimes property investors can let their emotions or biases cloud their judgement. Therefore, it’s important to know and understand your unique emotional triggers and be aware of how they influence your decision making.
Your unique attributes
Ask yourself how you think your life experiences have shaped your views on investment and risk-taking.
Have particular life events impacted on your ability to trust others and as a result do you tend to be cautious about believing the advice you receive? Or perhaps your attitude to risk has been impacted by losses that you’ve experienced in your life. You may have a deeply ingrained need to look for security and certainty.
Alternatively, you may have an idealistic impression of investing that could prevent you from being able to make financially sound business decisions.
All of these are normal human emotions that can develop over the course of a lifetime. However, it will help you as a property investor if you can acknowledge and understand your feelings.
Understanding your emotional triggers
When it comes to property investment, self-awareness is highly beneficial as it enables us to know our own emotional triggers.
For instance, can you sometimes dig your heels in and refuse to listen to sound advice? Or do you prevaricate for too long, unable to make a decision – ultimately losing out on deals? Perhaps you’re too cautious and hang onto a property, when it may be sensible to cut your losses and sell, so that you can move onto the next project.
Whether you’re a high-risk taker or completely risk-averse, it helps to surround yourself with advisors who will stop you from making rash decisions (or no decisions!) and give you sound guidance based on your individual needs.
Work with trusted advisors
If you have personal emotions or embedded values that influence your approach to investment, then share these with your trusted network of contacts. That way, they can work with you more effectively to develop plans that will suit your investment strategy.
A trusted advisor should be a person who understands your attitude and is willing to work with you to help you achieve your goals. Preferably, they should be someone who is confident enough to point out to you when they think you’re allowing your deep-seated emotions to stop you from moving forward.
However, on the whole, you shouldn’t be afraid to let your emotions come into play – they are a part of you. The trick is to be self-aware and decide how your values and feelings can work for you. Draw upon them when determining what your priorities are and what your ultimate goal is.
Successful property developers have learnt how to work with their emotions and personality type – and not against them.
Would you like to learn more about property investment?
At PMA, we run a Mentoring Programme to show you how to invest in property as well as a range of courses aimed at beginners and seasoned property investors.
Join us on one of our Discovery Days to find out more.
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Land Assembly - Create Developer Profits Without Owning Anything!
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Dates: 15th & 16th September 2018
Venue: Park Inn Hotel, Heathrow
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