Life Rewards Action: The Opportunity Cost of Not Acting Quickly
Do you find yourself thinking about buying your first home or have a home and considering buying a rental property?
Buying a property can be a daunting idea, especially when you see prices rising daily. But if you’re thinking about buying, besides thinking you may not have enough deposit (there are solutions for this), what’s stopping you from taking that step and actually doing it?
‘I want to wait for prices to settle down’ or ‘I want to review my finances and save a bit more money/pay down some more mortgage (despite having enough equity/deposit)’ are pretty common statements from people who are hesitating to take the next step. Usually, these reasons are likely coming from a place of fear. Fear of the unknown, fear of mortgage, fear of going out of their comfort zone.
However, the consequence of not taking action on something you want could be riskier than actually doing it.
Visualise where you want to be five years from now, what does your life look like? How do you feel having met your goals? Soak it in for a minute….
If you see it and feel it, you will achieve it. You just need confidence to take action.
Taking action
If you’re waiting for the market to drop, you must have been waiting and will be waiting a loooong time. If you’ve been following me, you’ll know that there’s no indication that prices will ‘drop’. Yes, there are cycles, but property prices, especially in Auckland will always trend up and if you’re waiting for a good time to buy, there is no time like the present.
The recent Government Housing Announcement will likely have scared off a few uneducated buyers, which may ‘cool’ the market in the short term, which makes it the perfect time to buy. In every crisis there’s opportunity, you just need to know how to see it.
Taking action comes from confidence and confidence that you’re making the right decision comes from being educated and prepared.
The opportunity cost of not taking action
Maybe you have done your homework and saved a decent deposit but you’re still waiting for that ‘right’ property or think it’s crazy or refuse to spend $1m on a tired old property.
I have a hard truth for you, the market won’t wait for you.
Yes, 5 or 6 years ago you could have bought an epic house for $1m but I bet you would think that house would be a bargain for that price now. I can pretty much guarantee you that in another 5 or 6 years, the house you think is unreasonable to pay $1m for now will likely seem cheap.
The problem with waiting is that most people can’t save as fast as property prices are likely to keep rising. So, are you prepared to have an even worse or lower quality property for the same price in a few years or even a few months from now? Probably not.
Here’s the perfect example of what you could be missing out on if you wait too long, one of my mentees, Tim, was nervous about buying this property back in late 2019 but now he’s over $1m richer thanks to trusting me when I said ‘act now’.
What are you really waiting for?
If you have some savings, the income and the want to buy, what’s really stopping you? Mindset? Not knowing what to buy?
I cover all of these topics and more, and how to overcome them at my 1-day Property Workshop. Find out more in the link below. Take action, book now, I’ll see you there!
PROPERTY WORKSHOP: How to Buy or Invest in Auckland
Lucia Xiao | support@luciaxiao.co.nz