Changing mindset from risk-averse to taking calculated risks

Hi all,

Recently I've been thinking about genetics and how my brain is wired. (In my family going back 2-3 generations, there is a clear anxious/OCD streak and also an ASD streak (autism spectrum disorder) - not saying necessarily the two things are linked, just saying that you can recognise the ones in my family who are anxious as clearly as you can recognise the ones who have ASD eg Aspergers. Similarly you can recognise the ones who didn't get either streak and are just chilled out, normal people :))

Whether it's nature or nurture, I definitely also have that anxiety about property investing which means I'm incredibly risk averse. It has definitely held me back in the past in not taking opportunities at the right time.

Anyway I recently sold in Sydney and intend to diversify into a couple of other capital cities in the next 18 months.

I've heard lots about how you can change your mindset - but I just wondered if anyone has been able to change their programming, in a way, because while I have the right mindset I seem to be constantly fighting the way my brain seems to think!
 
Recognizing this is first step!

Lots of people are not able to self actualize.

I too had this issue....but as you buy more and more properties you relax and develop a calm sense of excitement instead of anxious fear.

Thinking opposite to the herd is what makes a successful property investor.
 
Good question. It can be difficult to differentiate between sensible and rationalised fear when it's all coming from you.

We're all weirdos in our own way. I have a high risk profile and that scares me!!!

Though the 85 tells me you're still young, you seem to have been around for a while. That means you must've made a mistake or two. It's the mistakes that we learn from.

What are the things you've done right before? They might have been planned or unplanned but you can try to emulate them. E.g. I bought a cheap, dirty, unrenovated place near a hub to live in when lots of other people were putting bribes in their rental applications.

What is it that you don't want to do again? E.g. Another time I bought a 4-bedder. That means I mostly get families which means more wear and tear and the loan is too big for my liking. The drop in equity a few years ago would've been easier on a smaller loan. Plus I bought site unseen - never again.

After thinking things through very carefully, I decided to start looking again in the price range I like. I've just gone step by step and not rushed anything. I think it's working for me.

Thinking opposite to the herd is what makes a successful property investor.
I second this. The real heroes on this forum are the ones who've followed this simple maxim.
 
Realise that you do not need to be right and your self worth is not attached to money.

Then you can take more risks.

If there is a fear involved then all your decisions will be un-clear and scarcity based.
 
Most of all the self made unencumbered high value debt free investors I know all have the appearance of inconsistency , but are very good listeners..
 
Most of all the self made unencumbered high value debt free investors I know all have the appearance of inconsistency , but are very good listeners..
What do you mean by inconsistency here Willair??

I agree, successful people tend to stand back and listen more than they blow their own trumpet about their achievements.
 
Risk is an interesting concept.

I find 'risk-averse' people tend to take risks when the opportunities are seldom, and get scared when there are lots of opportunities.
 
What do you mean by inconsistency here Willair??
.
Just every time I talk too different people,one person who lives in a near by hotel b-b, he made a serious amount of money in the Brisbane valley with 2 sites he ran his businesses from,maybe 20 staff sold everything and just walked away 5 years ago,.talking to him the other day and he has gone out paided the money to be fully lic to manage properties in inner Brisbane he has 23 on the books so far wants to have above 250 and he will then sell it off,that's inconsistency to me and the freedom to do it..
 
from personal experience,

took a lot of dumb investment risks when I was younger many of which didnt pay off, eg losing 97% on an investment! (and no it wasnt the casino!)

now, im still willing to take risk but it is far more calculated/educated.

also, my risk apetite has gone down significantly due to two key factors

- my age, not sure if I could bounce back like I was when I was 21
- ive got a lot more to lose now, years of back breaking hard work
 
Risk is an interesting concept.

I find 'risk-averse' people tend to take risks when the opportunities are seldom, and get scared when there are lots of opportunities.
+1

it seems they also follow the herd, ie really want to buy buy buy at the end of a boom, and spend their remaining time talking themselves out of , and looking for excuses

eg I have a friend who wants to buy right now, but every property he or I find, gives me a list of why he shouldnt buy them including 'I dont want a house that has maintenance', but high yield, high cg, high deprecation, '
 
Hi all,

I've heard lots about how you can change your mindset - but I just wondered if anyone has been able to change their programming, in a way, because while I have the right mindset I seem to be constantly fighting the way my brain seems to think!
Hi Tess,

To speak from my own experiences -
1. Yes, you can change your mindset... however, be prepared for it to take time, effort and have challenges and setbacks.
2. Anxiety has been linked to the experiences growing up... i.e. anxious parents will raise anxious children (because we learn how to manage situations and how to understand our experiences based on our parents responses).

Some ways that I have been able to manage my anxiety is through the practise of 'mindfulness' http://www.livingwell.org.au/mindfulness-exercises-3/

There are also a lot of cognitive behaviour therapists out there who focus on changing behaviour.

I have done counselling to assist me with making changes and that has been most helpful because first it helped me to identify the unhelpful thoughts, what triggers them and what my beliefs are around that. It is only then that I was able to change my anxious thinking and behaviours. Personally, I think counselling is excellent (as long as you have a reputable and good practitioner) and everyone should do it at least once in their life.
 
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