03 Feb Myth & Opinion in Real Estate
Real Estate Investment Can Be A Minefield
We have heard every opinion and myth that is out there with regards to property investment, and part of our job is educating our clients on what ones they should believe, and which ones they should discard. Many of these beliefs have been held since childhood, or offered by a family member or friend, that the client holds in very high regard; so they can be unreceptive to the prospect that the information may be misguided.
It’s important to note that when we talk about property myths, we are not talking about mistruths or lies. The information passed on is almost always well intended, and an attempt to help its recipient. Therefore, we came up with a very simple way to distinguish between fact and myth.
“Is it proven?”
Questioning as to whether something is proven, or provable can create an impartial measurement. Mathematics leaves no room for error, so asking if something is scientific or an opinion, will quickly separate advice into two categories.
“Always buy the worst house on the best street,” is sometimes brilliant advice, and in a market flooded with property, can be the difference between a profitable and unprofitable investment. However, if stock levels are low, and the market is competitive, waiting for the “worst house,” to show up, can severely limit options, and minimise the impact of the investment, as the potential buyer waits, their cash sitting in the bank, instead of being allocated more effectively.
Myths, in the end, are easily recognised and when defined as opinion or fact, can prove to be a useful part of your investment ethos. However, when opinion is leading the charge in your strategy, a potentially brilliant investment opportunity can be missed, or a property which offers limited value can be purchased.