The emotional side of investing in real estate
Condo investment might seem like a cold, hard numbers game—but it’s also an emotional experience with its own unique set of highs and lows.
There’s a ton of advice out there about the numbers side of things, less so for the emotional rollercoaster you’re about to hop on. Because of that, I’ve rounded up six things you should remember as you make your move to become part of the 5 percent of the population that actually owns an investment property.
It’s exciting—at first…
There’s no doubt about it. The process leading up to signing the paperwork is an exciting one. As you plan, save up, consult, research it’s often an emotional high. And why not? You’re about to take a big step to improve your life.
…Then it’s scary (and that’s OK)
The excitement often fades after you’ve signed the contract to purchase a pre-construction condo. This is normal. There is real money at stake, and the doubt is your mind’s way of making sure you really have made the right choice. And did you? Did you overpay? Here’s a secret—virtually everyone overpays… at first. It’s just a fact: supply is limited, everyone is afraid of missing out, and know this, developers set prices as high as they can. But over the long term, real estate values have consistently grown in the GTA.
So ask yourself an important question
Sometimes people cancel an agreement to purchase within the 10-day cooling off period. I see so many first time investors wait and wait, day by day, before cancelling the agreement at the last minute. It’s like they are torturing themselves! In literally every single case, the investment returns if they would have held on to the property would have been HUGE. Don’t let that happen to you. Ask yourself, “Do I want to make my decisions based on fear or based on courage to take action?”
That feeling of uncertainty? Yeah it never goes away…
So you picked the courage side and you followed through with your commitment to purchase the condo. There’s still no such thing as a sure thing – if there was, everybody would be a real estate investor! So please understand another secret of the pros – you’ll always feel some uncertainty throughout your life as an investor. I don’t know anyone who doesn’t.
…But you can learn to deal with it
Like with anything else, the longer you invest in real estate the more confidence you’ll build up. It gets easier, and the negative voices get quieter and, yes, easier to tune out.
With confidence come greater clarity and conviction to take action when an opportunity presents itself.
Always focus your thoughts on the future
If you’re investing in pre-construction condos, clearly you’re not stuck in the present. You’re buying something that doesn’t even exist yet. Well, use that same foresight to deal with your fears. Think about how much better off you’ll be in the future with the decision you are making today. Your future self will thank you.
***If you enjoyed this article, you might also enjoy listening to the podcast which it was based off. Check it out here***