A property investment tip to support you through our change in Government

If you want to be a successful property investor, for the long-term, it’s crucial that your decisions remain unaffected by the fluctuating currents of daily news and events. As someone who can be quick to react, I’ve learned the hard way that knee-jerk reactions are often more harmful than helpful. Take it from me – the key is to respond, not react.

A change in Government, for example, may illicit an emotional response in you but reacting emotionally to it won’t serve anyone. There has been a lot of talk within property forums, groups, and chats about the fear of what the new Labour Government will do. Those of us who have been landlords and investors long enough, will find it hard to imagine anything worse than the last stretch of Conservative government, which introduced things like Section 24 (paying arguably unfairly higher taxes); landlord licensing; and border control by checking tenants’ ‘Right to Rent’!

Regardless of Government changes, and instead of reacting to fearmongering, remember this – property is a long-term investment. A 5-year administration is not long. It’s very short, in relation to the cycles of the property market, and it bears no correlation to the outlook of property investors. So ignore it; focus on what moves the dial over the entire length of your investment – some 20+ years.

Embrace an ‘If This, Then That’ approach

Here’s a property investment tip for the ages – embrace the ‘If This, Then That’ (IFTTT) approach.

This incredibly useful tool that can help you make decisions ahead of time, based on sound reasoning rather than emotion. According to 94 separate studies, people experience significantly higher success rates for just about every goal they set when they follow this method.

Here’s how it works:

Instead of waiting for something to happen then saying, for example, ‘Oh no, my tenant hasn’t paid the rent, how will I handle this?’

You map out responses to potential scenarios ahead of time. So, before it ever happens, you decide, ‘If my tenant doesn’t pay the rent, then I’ll ensure I’ve got rent guarantee insurance in place to cover my costs’

There are no decisions to make in the emotional moment; simply follow the plan you put in place for yourself ahead of time, when you had a cooler head.

Embrace the IFTTT approach to maintain consistency in your decision-making, no matter the circumstances. Whether you’re having a rough day or celebrating a big win, your decision-making process should remain unchanged and this technique will help you to ensure that.

This isn’t only for the bad days. Even positive emotions can be detrimental to decision making. A carefree attitude might leave you vulnerable, while negative feelings can prompt hasty decisions that could cost you financially.

Reacting from your emotions is bad for you, your investment, AND your tenants

Being disciplined doesn’t mean being detached or lacking compassion. By incorporating a margin of safety and compassion for your tenants into your IFTTT strategy, you protect your investments from the whims of emotional influence.

If managing this balance is challenging, consider exploring Stoicism to strengthen your approach. Alternatively, feel free to book a free property investment consultation to discuss strategies that can safeguard your investments from emotional pitfalls.