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Shifting ‘emotional attachment’ paramount to property market success

management
1 minute read

Shifting ‘emotional attachment’ paramount to property market success

by Emma Ryan 03 February 2020 1 minute read

Two experts have shed light on the common challenges impacting investors, noting that traditional, emotional ties to property often create a headwind.

Mark Trowell
February 03, 2020

Speaking to Smart Property Investment (SPI) for this month’s proptech special, Yabonza’s Mark Trowell and Heidi Guenther said one of the hardest components around property investment lies within having to shift the emotional attachment that comes with a purchase.

“When you buy CBA shares you don’t have emotional attachment. You don’t say ‘I want to go past and have a look at a CBA office’, you don’t do that when you buy shares. You say, ‘What’s the return on these shares going to be?’ When you put money into superfunds, you’re not putting an amount of money into superfunds and going, ‘Wonder what my yield is and where its held?’ Mr Trowell said.

“It’s a transaction way of looking at it. So, why are you buying property? You’re buying property as an income generator or for capital growth purposes and because you want to do X in your lifestyle – the same reason you’re invested in shares, the same reason you’ve got super. It’s a financial instrument which you’re going to grow over time.

“So it’s about changing people’s mindset. Property is an asset, it’s an asset class, but no one’s actually ever viewed it, or organised it/managed it to look like an asset class, and informed and educated people around asset performance.”

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Ms Guenther said a barrier to many investors is traditional property managers who fail to understand the perspective of viewing property like an asset class, rather than an emotional attachment.

“No one’s ever explained that to them,” she said. “They’ve never had that discussion with a property manager before”.

As part of this month’s exclusive proptech special, Ms Guether and Mr Trowell also spoke to Smart Property Investment about how “Tinder-like” platforms are paving the way for such technology.

Shifting ‘emotional attachment’ paramount to property market success
Mark Trowell
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About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]Read more

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