Property Hub - Investment Insights & Inspiration - Realty Talk: FOMO's Antithesis: A Costly Gamble

Episode Date: April 13, 2024

Today - your host Bushy Martin will introduce our first guest in a series to help investors in the area of property management.  What better place to start than in the selection of a person to look after the management of your investment.  Getting a PM who treats your investment as if it was his or own. The opposite of FOMO - Fear Of Missing Out - is missing an opportunity BECAUSE of fear.   The cost of that can be extreme as you will hear today.  NEW – join our Facebook group, The Property Hub Collective: https://www.facebook.com/groups/1857513011165686 Join the Property Hub community on Substack! Sign up to get Australian property news, opinion, and episodes in your inbox: https://propertyhubau.substack.com/ Subscribe to RealtyTalk on the Property Hub channel: Apple Podcasts | Spotify | Google Podcasts | Email Property Hub is a collaboration between Bushy Martin from KnowHow Property, Kevin Turner from Realty, Andrew Montesi from Apiro Marketing and Apiro Media, and Australia’s largest independent podcast network DM Media. Business and partnership enquiries: [e-mail] omnystudio.com/listener for privacy information.

Hi, I'm Kevin Turner and welcome to this week's Realty Talk Show. And before we start, I want to say a big thanks once again to our supporters and sponsors, eRealty Media Group, BMT Tax Depreciation, Know How Property Finance, Get Rare Property and Apiro Marketing. Well, kicking us off this week, Bushy is going to introduce our first guest in a series to help investors in the area of property management. And what better place to start than in the selection of a person to look after the management of your investment property? How do you go about getting a PM who is in fact going to treat your investment property as if it was his or her own?

Great question. We will pose that question today of Hermione Gardner, whose company is appropriately called Sidekick. That's what you want when you've got someone beside you managing your investment. We also want to know what your rights are if you're not happy. All that's coming up shortly. You know, the opposite of FOMO, fear of missing out, is missing an opportunity because of fear. And the cost of that can be extreme, as Rasty from GetRareProperty will explain to Bushy today.

And if this is your first time with us, a big welcome. You can help us grow by hitting the subscribe button and join the conversation anytime on Facebook at the Property Hub Collective. And we'll be back in just a moment as Bushy kicks off this week's show. Are you curious about harnessing your super for property investment? Propel your future with the enlightening online seminar, The Ultimate Masterclass to Self-Managed Superfund Property Mastery. Reserve your spot now at GetRare.com.au forward slash SMSF.

Spearheaded by Rasty from independent buyers agency GetRare Properties, this masterclass unravels strategic property investment using your self-managed superannuation fund. You know, it's not just about learning. It's about transforming your financial future through education. So embrace this opportunity to enrich your investing acumen. Enroll now in the free masterclass and begin a journey that marries insight with action, leading to a financially empowered tomorrow. Realty Talk and your host, Bushy Martin.

Welcome to more of our special property management series. And we've been saying for many years that the person who's going to make or break the property investment experience is your property manager, as they'll have actually the longest relationship with your property than anyone else. And the quality of their management of your property is the difference between a dream experience and a nightmare. So make sure you don't make the mistake of trying to do this yourself because you just don't know what you don't know and the industry is becoming way more litigious. So what separates a great property manager from a good or a bad one and how do you select the one that's best for you? Sadly many

investors treat property managers as a bit of a commodity and assume that they're all the same so they only focus on the one who's going to give them the cheapest management rate but this is a massive and potentially very costly and expensive mistake. So to help you select a great property manager or decide if your existing property manager makes a grade we're joined by industry veteran, coach and trainer, Hermione Gardner, the director of Sidekick. So welcome to Realty Talk, Hermione. Thank you for having me and you got the name right, so well done. I mean just, I had to pause there, but this is a really good subject and one that we like to revisit because people just forget the intricacies of what's involved and the importance of property

management in that context. So I guess just to set the scene, can you sort of start by giving that are run down on what separates a great property manager from just a good or average one yeah it's interesting because i think it's like what you're saying i myself even when i started out in property management many many moons ago like i i probably thought i was a good property manager like but i realized over the years and where i am now in my career 20 years later that i don't know how people trusted me to manage my property with two years experience in the industry didn't know anything about investment properties so i would say um there's a number of factors that come into play experience is definitely going to be one of them

there's there's there's some basic fundamentals and foundations of being a property manager but there is there's something that comes from having been a property manager for five eight ten plus years that there's some things you just know they're not written into a process or a procedure but there's some things you can just pick up about tenants or properties or risks that um can really uh it's like having a secret secret weapon in your pocket as an investor right like it's like i think you mentioned in the introduction you don't know what you don't know and things can get very litigious and it's impossible for even a good property manager to know all the legislation back to front um but a really great property manager will have that experience they'll know

the legislation um and they i suppose the added layer of that is they're good at dealing with the people and the people being you as the investor but also the tenants because whilst they might be property managers a lot of what they do is managing people and so what i've noticed over the years is property managers who aren't very good at dealing with people will get themselves into conflict they'll get themselves into miscommunication and those issues can escalate very very easily and i would say probably one of the number one reasons i've seen over the years investors leave a property manager the root of it comes down to a miscommunication or communication in conflict so i think a great property manager is actually not only experienced

but they are great at communicating and managing people and the nuances of people both as i said with the landlord but making sure that tenant is well communicated and a strong relationship is in place with the tenant and then the final thing i probably add on to that amongst many many other things is a really great property manager will actually understand investment property um i'm alarmed to say this i ran a conference with about 80 property management professionals last year and in a room of those 80 people one of the speakers said oh what's the current investment rate uh sorry the current mortgage cash rate and like not one person in that room of people managing properties signing on new clients knew what that rate was and that

was really alarming for me as a coach in the industry and so what i really see is the really great property managers no one understand investment properties they know yields they know returns they know about asset value you know your budget your cash flow how to reduce that risk can maximize those returns along the way. And I think that is really, especially now and into the future, what's going to separate a good property manager from an incredible one so that you've not just got someone who can press the buttons, but actually advise you and keep you on track for your investment. Really good point. And I think a good property manager is an investment manager in that sense. And if they're not understanding what the numbers are doing,

but also have the soft skills to manage both sides of that equation, because they're pretty much the meat in the sandwich when it comes to keeping the landlord happy but also making sure the tenant is comfortable and enjoying the space as a consequence and let's face it we've all seen prison guard come property managers that treat tenants like lesser beings uh less of that now i'm glad to say uh but but also just don't understand what's in the landlord's head and get so stuck in the task world that they're missing what's what's truly important to the person who owns the property. So love your thoughts on that. As an aside and putting on the spot, Hermione, I wouldn't mind getting your thoughts around the shift from what used to be a lot more

portfolio style management where the property manager had pretty much full management of the property from where to go, except perhaps leasing, to a much more pod style exercise where there's a bunch of links in the chain. Have you had any thoughts or experience around those and the pros and cons of each um yeah look it's really going to depend on the size of the business and um you know we're talking you know probably in this conversation today about selecting a great property manager but um a pod scenario is where there is a property manager but then they're supported by maybe admin or leasing or account so it's designed to take some of the functions out that are actually getting in the way of them managing the relationships you know working on

you know looking at is that property making as much money as it could like where can we improve where can we minimize the risks because a lot especially because of legislation but also process there's so many things now you know even just the email inbox the property manager has every day that consumes so much of their time and actually takes that them away from what they're actually really good at doing which is the problem solving the relationships the you know all of that beautiful stuff so i think that a pod um for a bigger business it doesn't always happen for a smaller property measures for a bigger business it makes a lot of sense because it allows that business to you know manage more properties but like keeping the prop the quality of that

property management service quite high because there's depending on the business there's going to be a cap of how many properties a property manager can look after while still making sure that all the t's are crossed and the eyes are dotted and there is relationships are in place yeah very well said uh and now i guess thinking from the landlord's perspective then uh what's your thoughts on how do you go about selecting a great property manager yeah it's funny i've got i've got a few ideas one that i'll just touch on which might be not maybe a common one that's brought up but considering what you said before about um tenants and how property managers can treat tenants and the impact that how a property manager treats tenants on the duration of

tenancies, how long tenants choose to stay in properties, how much they, you know, cooperate with certain situations that come up. The tenant relationship is actually very important. So when you're selecting a property manager, like I actually have said before to landlords, put on your little secret agent hat and actually go and put inquiries on from a tenant's perspective in the agencies that you're considering. And even call and pretend you're a tenant or go to some of the opens and just see how you're treated as a tenant. And that's really going to give you a good indication as to how much emphasis they place on that. I know for myself, I've got a property that I'm renting at the moment. My current agent is great, but the one I rented

previously a few years ago, even my stature in the industry, I was just so surprised at how they treated and how slow they were and how the responses that I got. And interestingly, then when I moved into that place, they were letterbox dropping that area looking for new managements. And I thought, well, if I'm an investor in your area, I'm not going to use you because the tenants weren't treated very well. And the tenants are usually the first ones on the Facebook groups and things to jump in. So, you know, layering that back, I always say to landlords, if they're asking me, oh, how do I find a good one? Like going with like reviews and what other people are saying is going to be really important same if you are going to go on a holiday or book

a restaurant you often look at reviews to see so i would always suggest looking at the google reviews and looking specifically for reference to oh the property manager was really great or tenants actually on their writing i've had a really great tenant experience and looking at the experience that other people have had with that agency not just the rating but going a bit deeper and then also if you are part of those local facebook groups if you're in those areas I know as an investor, sometimes you're not in those areas, but potentially joining some of those community groups and actually then typing in property manager, seeing what conversations has come up or popping your own post in there to say, see who is recommended because you

will get some bad experiences, but you'll also get, you'll probably see some trends. People are usually always recommending one or two particular property management agencies in that area. So along with your normal research of Googling and comparing all of that, I would really recommend looking at the customer experience because that's really going to tell you the truth. And the other major thing is to not just shop on price. So there's a perception I have found for investors and landlords, and I totally understand because of the cost of everything these days and the increases in mortgage rates and all those sort of things, that they shop around to try and find the cheapest rate. probably because that's there's that perception that all property managers are the same but i know from you know first-hand experience now working as a service to the industry and coaching

and training these agencies and businesses that there are some pretty big differences between agencies who have really strong processes in place and really think about things strategically versus some who just treat property management as a little back office function if they're more sales focused and the difference in that sometimes you might go oh that one's you know seven percent and the other one's five percent depending on the area that you're in and you might go well that one's cheaper but we need to remember that a good agency despite maybe paying a few extra dollars a week in a management fee should be able to put more money in your pocket overall they should be able to reduce your vacancy period they should be able to improve your asset value over

time and so maybe despite paying a few extra dollars a week you should see increased returns and that is worth paying more for in my opinion absolutely 100% agree and you know it's never about cost it's always about value and I remember my good wife who ran a very successful property management business she always used to say to prospective landlords if you're prepared to put your property at risk for the cost of a cup of coffee a week for your most expensive investment you've got to question whether you're doing the right thing. And that's, you know, the difference between 5% and 7% is about that when you look at it on most properties.

So points very well made. In terms of the asking exercise then, Hermione, what does the landlord need to ask and look for over and above what we've already touched on to ensure that they're actually selecting the best? Yeah, so once you've kind of put a few agencies on your shopping list, i suppose and then you're wanting to go and you know meet with them and shop around um i'd say ahead of asking i would really try and just note how that process is from when they first deal with

you to like booking in that first meeting um what efficiencies and what you know like how they're treating that process i think that that's the first important step does the experience you're receiving then match the service promise that they're sitting down um i think really important um again before asking questions is to see if the agent is actually asking you questions or if they're just coming to pitch at you and then asking if you have any questions at the end because i think that the really good agencies will ask you the questions to identify what's important to you what your investment goals are short term long term what your challenges are currently or have been in the past those are the agencies that are really trying to get to

know you and that are actually going to be more property management minded and focused in providing that service so i think that those are two really important things before the questions you ask but then i think it's really you want to probably ask some questions to assess their focus on property management i think as i mentioned before there's some agencies who are probably more sales focused and they've probably tacked on property management as a side thing for the income which great good business model but we want to make sure that there's some focus on property management not just for having that service but that maybe there's a director within the business that is property management focused or there's a head of department or someone in that

larger agency that is focused or that you've got a very active director maybe the director is part of the property management team they are the property manager because having that property management focus they're people that have come from the roots of property management and they're going to be thinking about it differently to potentially and this is generalizing a sales focused agency who's just got property management they're not probably going to invest in the tech and the tools and the training to get their team up to scratch and so we really want to ask the question around you know who's focused on driving pm what training is there how are you upskilling what systems are you like you know have you got in place to make your property management experience

better um and then i think i mean i was going to say before around like the treating the how they treat the tenants but i think that's probably going to come from you actually doing the research because i can't imagine any of them are going to go oh like we treat them really bad um but i think um you know i think that having the focus on property management asking about the level of experience like who's going to be managing my property a lot of the agencies will have a BDM or someone that you might speak to first. So it's really important to know not just that BDM and the agency, but who's going to be the person actually managing the property. What experience do they have? And what can they actually bring to the table?

Do they have an investment property? What do they know about investment properties? And trying to maybe ask them questions. It's probably more seeing if they ask you the right questions to learn about your investment situation um because i think again what you might find is they might sound really great from their marketing and their processes but they actually don't know much about investment and you might find yourself having more investment knowledge than they do so i think finding the right questions to ask from that will be really important too yeah really good coverage and and some great thoughts around that and i agree with you it comes down to the quality of the person who's actually managing your property. Yes, they need

to have the system support and the management support, but if the person's only been there five minutes and we all know that chairs in property management offices can be revolving doors if the environment's not right, then getting down to that level is really important. So some great points there. Now, if we're not happy with our current property manager, then And Hermione, what can and should we be doing about it? Oh, look, first point of call, I'd always try and speak to the property manager. Like we've got to remember, like they are human beings too.

Like, you know, I've messed up as a property manager. I've overlooked things as a property manager. I've assumed things as a property manager. And sometimes it isn't, you know, until someone brings it to your attention that you realize, oh yeah, that is a problem. I didn't realize. So it's going to be dependent on the relationship

that you have with that PM. but I would always say, look, if you're not happy about something, ask for a meeting, a call or a Zoom, like, you know, ask for a time where you can discuss the issues. I think instead of just bashing out an email with all of your anger and frustration, which is easy to do, is just say, hey, I've got a few issues I want to discuss. Like, I'm not super happy. Can we have a meeting to talk about it? You know, you might be able to hear it from their perspective and you might be able to shift your thinking around it. Won't always happen. Sometimes that property manager may act defensively or react badly so i think the telltale sign is not going to be the issues that

you have it's actually how that property manager deals with it that's going to give you the indication on whether you should stay with that agency it's kind of like if you if you go out to a restaurant for dinner and something's wrong with the meal if you say there's something wrong and they're like oh no worries almost all we're so sorry let's bring you a fresh one let's give you free dessert free bottle of wine and they're you know make you feel good out of that bad experience you're gonna go back but if you know they act defensively and they make you wrong and you the problem then you're probably not going to go back so it's that same that same um kind of uh energy and then i think if you don't get the results or you're unable to have that conversation with

the pm always ask to speak to the director escalate it to the next level unless obviously the person you're dealing with is the director of the business already that would be a challenge for you um but look if they're not meeting your needs they're not delivering the service they're putting you or your property at risk, they're not communicating, whatever those challenges are that you're having, like you're never stuck where you are. There's a plethora of options out there for you, both local and, you know, cross country options that can deliver property management services for you. So it might be time to look for another property manager. And so then you can research your options like we were talking about before, find someone that's going to meet the

needs that you have as an investor. You know, if they haven't been communicating, you're going to to go and really find a property manager who is really strong at communicating so you can feel that you're getting the right service there and then you're just going to need to check your agency agreement find out what your notice period is and then your new agency that you choose can even just give the notice for you so you can let them do the heavy lifting and change over your management to the new agency and i would say the last thing is like don't hold off to a tendency changeover to do that if you're not happy like do that whenever the you know you're not happy and you want to change it's actually easier from a property management perspective if i'm a new

agent if i take on your property now in the middle of the tenancy as opposed to at the tenancy changeover it's actually a lot easier because then i can come in i can start doing the routines i can manage that whole process very well said and covered some great points there so look i yeah we've only just scratched the surface and i know we could talk for hours about this Hermione. But I really want to thank you for these quite refreshing insights. And you've certainly reinforced the need to be very careful about who we engage to manage our property and how we go about it. And I just want to take this opportunity to thank you for all the great work in terms of coaching and training that you're doing at sidekick.net.au to help property managers

both grow and thrive for everyone's eventual benefits. So thanks for joining us on the show today. Thank you. Property deductions can save you thousands of dollars each year to make sure you maximise deductions, you need to work with the most experienced quantity surveyor in the country. BMT Tax Depreciation is the leading specialist in the industry. They've completed over 700,000 tax deduction schedules for residential investment and commercial properties Australia-wide. BMT guarantee to find double your fee in the first full financial year deductions. Call BMT on 1300 728 726 today for an obligation free quote. now have you ever caught yourself thinking or saying if only i'd done this or if only i'd done

that you know that deep-seated feeling of regret when you miss out on an opportunity and then kick yourself later as you keep saying to yourself i should have and i could have now sadly this is a common thought and feeling in the world of property because you can always find a thousand excuses why you shouldn't buy a property because you can always find a reason why it's never the right time but as you're about to hear it comes at a considerable cost so what is the cost of missed property opportunities well to explore this we're joined by the founder of leading national buyers agency rusty vibe have from get rare property so welcome back to the show rusty thank you this topic is so much uh meaningful to me because um you know there's so much opportunities out

there and they would keep missing if you think too much about it something we know analysis paralysis. Totally agree. Absolutely. It's a really good topic to dive into because I don't think many are really aware of the true cost of delay. So to kick straight into it, Rusty, what are the long-term financial impacts of missing out on a prime property investment during a market upswing? Before we really go into it, if that's okay, I'll share a fun fact. In the year 1980, the Australian National

housing median was $76,500. Let me say this again, $76,500 in 1980. Now, knowing that in 2023, after 43 years, the same matrix, Australian housing median across the country is $770,000. said has gone 10 times almost yeah now i actually tend to ask this question that if we had the way to ask our parents our grandparents ourselves if we were around how many properties we would have bought in 1980 knowing the fact that it has gone 10 times in 43 years and because i do this on a regular basis as educational programs on Zoom or in person,

I typically see lots of hands going up and the answers that I get, like how many properties would I have bought, the answer is as many as possible, even to the extent somebody said the whole of Australia, if I could. Now, if I really talk about that number, if you think about it, it's not really out of context here because now in 2024, we can safely say, I mean, of course, with a lot of question marks around it,

that by 2066, as in another 43 years from now, the Australian housing median with the same rate of something called extrapolation, the median will be 7 million plus. If you wanted to buy that many properties in 1980, we should be thinking about buying as many as possible even now in this market. And of course, the caveat is that,

oh, really the growth might continue. But let me tell you that the capital growth rate between 1980 and 2023, the numbers that I've quoted, is not really out of the whack. It's actually just under 6%. It's 5.5% capital growth. And where we are sitting ourselves, that's pretty normal. I mean, that really goes back to the history

of the housing market that we have been tracking or the AMP capital has been tracking, it's about that number. So it's not really out of ordinary for us to think about the average median. I'm not really talking about the quality purchase. I'm just saying, if you just throw the odds on the board and you just pick randomly a few points,

we are probably getting close to the average. But of course, with the right research, with the right due diligence, we probably are picking the better half of the growth because median is median, right? It's right in the middle. That means 50% properties have done better. 50% have done worse than that number.

So in the search of finding the right property, what we have found actually is that people miss out on getting the right exposure in the right time. As I said, there might be excuses, but let's not forget the reason why we are buying is for that growth, that kind of a functional security

that property or a growth asset would give. And it really comes down to the point that coming back to your question, that's a huge potential of capital loss we are making because when we don't have that exposure. It also means that when we have intention to build a portfolio of buying few properties, the success of the first one,

because with the power of compounding is one thing, but then the second thing is that we can extract the equity out to go and buy the next one and so on and so on. So the delay, which might feel that all we missed out on that, might not seem too much because they do not know what they missed. So sometimes ignorance is the best to feel good. But suddenly there is a missed leverage of opportunities. I mean, real estate is all about leverage.

You don't need to have all the money in your pocket. We can multiply that little money that we have, that return on investment or return on cash is a lot more bigger. Then we can extract and they can multiply. Then there's a compounding effect. And then the whole thing is about impact on retirement savings. right so so sooner we can get it sooner we can retire it's rather the question of how much money i should have in the retirement i would say have that money now or sooner then you can retire so

there's a huge opportunity and there's a lot of follow through and i would also add that when we don't have that financial security it's not just about the financial well-being it's also it has a lot more effect on the things around us like when we know we can get there it's much more easy as an example if i have to catch a flight and i know my flight or i need to be at airport in 43 minutes exactly and my gps says that i'll be there in 20 minutes as an example right so i'm not on a panic mode yeah on the other hand when i know i do not know about my journey i just need to travel i need to be there that might lead to the panic and the thing where we really need to mindful that there's a fear of of of losing money or the losing opportunity uh that risk aversion

or the loss aversion really plays a big role out there so if you need to be mindful of what's on the other side um really i mean to me that's really the big cost of missing out on the opportunities yeah beautifully said that old uh quote by steve jobs that comes to mind here where you know we we all uh overestimate what we can achieve in one year but way underestimate what we can achieve in 10 and you've given us a great example there you know buying a property in 1980 and and 10 timesing its value on the on the medium value today uh well there's countless examples of that being the case so word let's let's talk about the barriers now that's stopping people from doing because as you and I both said many times it's the stop that starts sorry it's the

start that stops most people what are some of the common psychological biases that lead to these missed property opportunities and and how can investors actually overcome them a great question um so first of all like it's a fear of losing money lots of people are really keeping the money to themselves and thinking that this is the last straw and you know like we really need to make it work and don't get me wrong that is really the case we really need to make every dollar count but the anxiety around the loss as i said you know there's other statement that the the the the psychology around losing hundred dollars is a lot more powerful the fear of losing it compared to the benefit of the gain that we make for the same hundred dollars is not the same

because we tend to give more weightage to the loss element so we tend to forget that what it might mean if it grows in our favor. So fear of losing money, so it's about education, like emphasizing on the potential of the loss as an opportunity cost really can help us with understanding of that bias over there. The other limit is the overconfidence that people have a tendency that they know the market,

they can time the market, they are just waiting for their last interest rate to happen so that they can jump in the market without realizing that the other players in the market are also saying the same thing. And all of a sudden, yes, there might be, I guess, more money in the pocket for people, but then there will be less properties to buy.

And all of a sudden we are competing again. So lots of people think that they have the, they probably tend to overconfident, like they tend to be overconfident around it. Then the other element of it is the hurting bias. They really like to think that what others are doing in the market. I've seen so many times that people tend to grow or go sideways as a herd or as a community.

Like if somebody is doing something, that might be the odd one out to start with. But then all of a sudden, like the whole friend circle, the group, social group goes around it. And what sometimes really happens is that they want to see that everyone is doing it. They don't want to be missing out. Then they choose to jump in. Maybe sometimes it's a bit too late. So there's a fear of missing out at the same time, but maybe too late in the journey there. But the limit, I would also say that this anchoring is also happening.

And what anchoring means is that we tend to get fixated. For example, we were evaluating some properties in Central Coast and New South Wales here. And what we were buying two years ago, you know, setting up the mind that, oh, those properties will let go at, say, 500K. How can I go and buy at now 650 now? so because there's an anchoring there so the the the way we can get away with that is to understand and the focusing on on the on the education looking at the the long-term historical the trends and not just for the pricing but also what's really the fundamentals of property investing the supply and demand having working with having understanding of that really helps

us with those and then there's a confirmation bias sometimes we say that okay i want to do something and then i there's a bias there that i might ignore all the negatives around it but all of a sudden somebody says the same word i'll really get you know uh excited about it it's like if i'm running um you know blue tesla will start seeing all the blue teslas around there yeah not very well said so uh to sort of look at this in context then how should investors actually approach the property market differently in order to avoid missing the opportunities in the future considering current trends and market data then russie yeah so so the way i would say is that it's the key things to be stay staying informed having having to understand like having the clarity that

what's happening in the market market is dynamic as well like we have been buying a lot of properties in support of market what we saw the market about a year ago is not the same market anymore because because other investors have woke up and again i'm not really saying that we should not be buying there but now it's being of the mindfulness of which pockets we should still be considering and what property what pockets we should let go and again it's really at the reasonable price or not because sometimes we might say again there's an anchoring coming in like we were buying those properties at that price should we buy now of course that's an element but if we stay informed to the fundamentals of property investing i guess the other part of it is like staying

staying true to your investment criteria yeah uh like having that investment criteria is the first thing and then staying true to it is also um i guess a very important element to it as an example if we are going for auction we tend to write a number on a paper that we have to go by on this number if at all we have to buy this property if and our mandate is now that buy this property if it is lower than that or let go the property so setting that investment criteria is very clearly rather than becoming emotional because that is a the whole biases are all actually emotional so if you let the emotion come into play especially for a unsupported investor who is really going against the sales agent on their own they tend to become emotional because

they have spent three four months already to look for a property and once they find a property they are like, I really need to get my weekends back, you know, not this domain.com.au or delstate.com.au all the time on my laptop, but I really need to go and get a life. With that element, there's a risk of like people are feeling the pressure of missing out. Then they also know it is really going up and up and up. So there's a catch-up game. So being informed, having that clear set criteria, sticking to it, I guess being prepared as

like sometimes the properties uh will come and go very quickly so we have to be very prepared very quickly uh in the market like this uh market will come go will come and go very quickly so can we really jump on the opportunity uh building some networks around it so i guess it's all about continuous education around it like can we really understand how the market is moving what are the biases being mindful of those biases being mindful to the long-term strategy and also knowing what investment criteria will work for me um i guess it really comes down to having a long-term perspective of things yes we might have to pay a premium to buy the right property but when we know the performance is such can we really make a compromise not really overly uh pay a big amount

of price to our property because you and i know we make money when we buy the property so it's about having that emotional control having that control surrounded and i guess the best way to do as to work with the professionals who know this, who are doing this on a daily basis, more as a system rather than emotional investors. You beautifully said. Look, it's a topic we could talk more on and we will in the future,

but I really want to thank you for these quite timely and eye-opening wake-up calls, Rusty. And we suggest that anyone interested in taking their property investment to the next level joins you on one of your free upcoming Fast Tracking Your Financial Freedom live Zoom workshops by registering at your website on getrare.com.au forward slash property investing for passive income which again we'll have in the show notes

so thanks again for coming on the show and sharing this with us today my pleasure thank you so much thanks fussy successful property investment is a game of finance do you have the right team and the right game plan realty talk is brought to you by know how property more than mortgage brokers bushy martin and his team of investment architects set you up with a sustainable strategy structured to lower your costs, tax, risk and stress while increasing your capacity for growth. KnowHow has helped over 1,900 homeowners and investors secure more than $800 million in property wealth. So get set to live more, work less and live your legacy. Want to know how to invest in your freedom? Visit knowhowproperty.com.au.

This is Realty Talk powered by realty.com.au. Well, that brings us to the end of this week's show. Make sure that you don't miss your weekly dose of Realty Talk or Bushy's Get Invested podcast, both delivered to you each week. And you can do that by subscribing to the Property Hub now on your favourite podcast player or wherever you are listening to or watching this show. Thanks once again to our supporters and sponsors and content partners, realtymedia.com.au BMT Tax Depreciation, Know How Property Finance, Get Rare Property and Apiro Marketing.

And don't forget you can join the conversation anytime on Facebook at the Property Hub Collective. In the meantime I'm Kevin Turner, and on behalf of Bushy and the Property Hub team, we look forward to seeing you again next year.