What to do When there is Uncertainty and Fear in the Market - searchpartyproperty

What to do When there is Uncertainty and Fear in the Market

Right now, the property market probably seems even more unpredictable than usual. With interest rates increasing and prices falling in many areas, it is hard to know what move to make next. This is understandably causing anxiety for many investors, who are afraid of costing themselves dearly by making the wrong call.

But while the fear may be real, you must not allow yourself to succumb to it. To succeed as an investor, you need to accept that there will always be uncertainty in the property market. You also need to know how to capitalise on this, as the best opportunities are often found in challenging times.

Ways to overcome your natural fear

As an investor, being worried about the state of the market is only logical, particularly when property prices are declining. As some concerns are unavoidable, the only thing you can really control is how you react to them. But choosing to respond positively to challenging situations is generally a lot easier said than done.

Thankfully, there are a few simple things you can do to make this easier. This includes:

  • Trusting the experts: Many experienced market analysts are quite happy to share their knowledge and insights with property investors. These people have devoted their lives to understanding market cycles and built reputations on the accuracy of their forecasts. As such, the information they provide should be fairly credible and a reliable base for your investment decisions.
  • Taking unsolicited advice with a grain of salt: Where insight from real market experts can be helpful, opinions from casual market watchers can be a hindrance. While your friends and family may be well intentioned, their advice may not be particularly credible. As such, unless they have significant investment experience, it is best to not give their recommendations too much thought.
  • Being sceptical about media sensationalism: Much like your friends and family, the media have their own agenda when reporting on the property market. As sensationalism sells, they tend to over-inflate risks and overplay how dire a turn in the market could be. As such, it is important to balance anything you see in the media against what credible experts are saying.
  • Getting comfortable with the unknown: There are no guarantees in property investment, and it is impossible to predict exactly how an opportunity will play out. As such, you need to accept that you cannot be absolutely sure every decision you make is the right one. However, if you do your research, trust expert advice, and back your instincts, the risks should be minimised.
  • Taking a long-term view: It is important to remember that no matter how dire the immediate outlook is, the worst will pass fairly quickly. This is particularly true with property investing, which should always be viewed as a long-term prospect. So, as long as you are set up to survive short-term pain, you should be able to achieve long-term gains.
  • Making sure you have a buffer: Preparation is the key to riding out any potentially difficult periods. As a general rule, you should always have enough savings to cover your investment expenses for at least 3 months. This should mean you can endure any market downturns, major unplanned maintenance issues, and unexpected vacancy periods.
  • Turning uncertainty into opportunity: If you are worried about the market and hesitant to make a move, most other investors will be too. This should mean there is less competition for quality investment properties and make it easier to get a great deal. Most successful investors understand this and see a soft market as an opportunity to build their portfolio.

Want to discuss this further?

If you are worried about recent market movements and need help planning your next step, Search Party Property can help. We know how inhibiting uncertainty can be and can work with you to overcome this and manage your fear. We can also help you better understand the current state of the market and develop a targeted investment plan.