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An industry expert has advised investors who want to achieve greater outcomes through their property portfolio to focus on what they can control and take responsibility for achieving their objectives.
During a recent episode of The Smart Property Investment Show, property investor and director of Pure Property Investment Paul Glossop explained that investors often try to outsource their responsibilities by “giving someone $10,000 to a property spruiker and buying an off-the-plan apartment”.
“Control comes down to focusing on what you can actually influence, not what you’re concerned about,” he said.
“Understanding what you can influence. Once you’ve understood that, take responsibility irrespective of what you do with your property journey.”
Mr Glossop highlighted that regardless of the experience of the investor, anyone who is able to take personal responsibility will likely achieve better financial outcomes.
“If they can’t take responsibility for their good decision and their bad, then ultimately they shouldn’t be in the position to put pen to paper on a sales contract in the first place.”
“If things go right, they’ll take responsibility. If things go wrong, they won’t take responsibility.
“So, going into it with the understanding that you are responsible for your journey, and ultimately your destination, will mean you’re going to be better positioned to learn and become a better investor along the way,” Mr Glossop said.
Host Phil Tarrant explained to investors the importance of this during COVID-19 as many factors will be taken out of the investor’s control, but there are also things within your control.
“If you look at the astute investors. There are probably two categories. One of which knows it’s probably not the right time, or can’t invest right now for whatever reason that might have an impact on their income, surplus or borrowing capacity,” Mr Glossop said.
“There are the ones saying, ‘What can I control right now?’ They are the ones thinking about refinancing, looking at restructuring, releasing equities or renovations,” he continued.
On the other hand, investors who are in a strong financial position can use the COVID-19 pandemic as a way to further enhance their portfolio.
“Then there are others who are saying this is the time to go shopping. I have an income that is assured, my buffers are in place, my borrowing capacity is ready to go,” Mr Glossop said.
Quoting Warren Buffet, Mr Glossop concluded with: “Be fearful when others are greedy, and be greedy when others are fearful.”
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.