Is emotion important when investing in property?
People think emotionally all the time. Investors think emotionally all of the time, most of the time.
So I need to, I need to divide it between the emotional side of it, right, and the investment side of it. For the first time investor, there’s always an emotional connection and as the person putting them into an investment, one needs to identify that and not just disregard it by saying it’s emotional, it’s emotional. No, because that is quite important.
So teach the person how you could take that emotional side and put it into the investment side. It’s as simple as that.
What I do is, I identify the emotional side, and when I speak to the investor, I tell the investor I was in your shoes one time, when I purchased my first investment. So I understand where you’re coming from.
But over time I’ve also understood I can’t take the emotional side and just look at it emotionally. This is an investment.
Saying that, I also tell them I do understand where you’re coming from, but let’s see if we could take that and just take some of those attributes or thoughts and put it into the investment side, because a lot of folks would say, “Don’t worry about the investment, you’re never ever gonna live in it”. It’s true. You might not live in it, but you might one day live in it, might.
So purchase an investment which you believe that, hang on a minute it looks like a good investment I might one day live in it. I’m not saying, I will, it’s for an investment, it’s to be sold and reap the benefits, get my deductions and do all of that.
But if this investment is not appealing, you’re not appealing to a tenant either, you’re not appealing, this investment is not appealing to a purchaser on the long run. It’s got to appeal to the purchaser and a tenant as well.
So there’s a little bit of emotion in it, but it’s not all emotion. It’s not just a property, it’s not just an investment, it’s a combination of things. Right? And you’ve got to make it. It’s got to have a feel good about it, that’s what it’s all about. It’s gotta have a feel good and they gotta feel, “Hey listen at the end of the day we made the right decision, we made the right decision to listen to Glen, to go with what he tells us to do”.That’s what it is. They’ve got to feel good! Simple!
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