Hindsight is 20/20. For investors, it can also be very costly. I just listened to a Ted Talk by Tim Urban of ‘Wait But Why’ fame in which he provides an insightful and comical exposé into the mind of, as he termed it, a ‘master procrastinator’.
Here’s a link to the talk for all those interested:
He personifies the phenomenon in the depiction of the ‘instant gratification monkey’ (this will all make much more sense once you watch the clip). The ‘monkey’ encapsulates our irrational fears of change, which work against our rational drive for progress. Contained within are all the excuses we make that prove to be roadblocks to our dreams, our decision to make a change in a new week, month or year rather than immediately and, most critically, our fears of failure.
Urban argues that procrastination when confined by a deadline is far less dangerous than that associated with more open ended ambition, be it starting a new business, working on our relationships or investing for the future. Goals are great, but without a deadline we risk falling into a cycle of perpetual procrastination, which, as I alluded to in the opening, can prove very costly.
So what’s the price of procrastination when it comes to property investment? Here’s a very telling example:
Between 2009 and 2012, Blue Wealth clients purchased approximately 700 research approved properties in the harbour city, with a combined value in excess of $350 million. Between 2012 and 2015, the average price of a dwelling in Sydney increased by 48 per cent and the value of Blue Wealth’s Sydney portfolio increased by $168 million. I could very easily have made a similar point with previous cycles and other capital cities, but you get the point.
The good news for all you procrastinators? Property markets move in cycles. With education, action and commitment you too can be one of the 700 I reported on above. Take action.