Here’s why smart investors do stupid things

Here’s why smart investors do stupid things

They say common sense prevails, but even the smartest property investors can make decisions that are, shall we say, lacking in merit from time to time!

If you’re new to the property game, it’s likely that you want to avoid making these kinds of costly mistakes.

So, read on to find out why smart investors do stupid things — and how you can avoid going down this path yourself…

Smart investors make stupid mistakes because:

1. They’re overconfident

Sometimes, investing in property can inflate the ego — especially if your portfolio is growing or performing particularly well.

But, it’s important to avoid letting your success get to your head.

Sure, you might’ve made some great decisions that have led you to a large return and a comfortable lifestyle, or you may have benefited from a set of strong circumstances — such as booming market conditions.

But the smartest investors in the room understand that real estate is a game that changes constantly, so they don’t get too comfortable.

In fact, if you’re the smartest investor in your team you’re in trouble (but that’s another story!)

2. They treat it like a hobby

Investing in property isn’t something that can be treated like a hobby or a weekend activity.

But often, the most clever people think they can balance a million things at once — their investments included — without giving their wealth creation strategy their full attention.

You can’t just “have a go’” at investing to test how it feels; it takes a lot of time, energy, and money to be successful.

To be a savvy investor, you have to take it seriously.

Treating it like a hobby or a side hustle will only get you hobby results.

3. They don’t manage their investments

Sometimes people make the mistake of thinking that investing in property simply means buying a property and placing tenants in it.

This could not be further from the truth!

In reality, becoming a landlord requires a long-term commitment from you.

In order to gain any sort of lasting, meaningful return, you have to manage the property well for as long as it’s in your possession.

This includes:

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