Mistake number four – They get tunnel vision
Perhaps its human nature but most investors get this. It might be explained as being a need for the comfort we get when we stick with what we know. In effect investors will start to develop a niche. Often it will be that having bought a particular type of investment, or having bought in a particular area, they will continue to buy that type of property, or to buy in that area.
You can ask them “What do you invest in?” And they’ll answer something like “Buy to let. I buy new flats. In my home town”. “What else do you buy?” “Oh, nothing else. Why?”
And so I patiently explain that there’s more than one way to skin a cat. Buy to let is fine. New flats are fine. Buying in their home town is fine. But there are endless opportunities if they’d just widen their thinking. Why not student lets in another town? Why not buy abroad? Why not buy and sell?
There might be good reasons why they don’t want to try any of these, and that’s fine as well. But often the reply is “I’ve never thought about it” and then you have to ask them why not? They could be making far greater returns by doing something different.
In the next post we’ll take a look at mistake number 5
Here’s to successful property investing.
Peter Jones B.Sc FRICS
Chartered Surveyor, Author & Property Investor