Misinformation is rampant even in the property space. Discover how to avoid falling for fake news in the real estate sector starting today.
There is no such thing as a central Australian property market. What we have, as we normally do, are different situations in different parts of Australia.
And yet, mainstream media loves to talk about the Australian property market prices as a whole. They say the entire market is going to rise X percent or fall X percent, for example.
Now, thinking of Australia as just one property market is a common misconception. But that’s just one of the many misconceptions that investors need to be wary about in the industry.
That’s why today, we will discuss a four-step process to avoiding misinformation about property investing.
But first, let’s get clear on one thing…
The Credibility of Content about Property Investments
It’s an extraordinary thing that people still think that what they read in the newspaper is always credible. This is especially true in the real estate market.
But the fact remains that nobody is writing about real estate in our newspapers.
When it comes to discussions about property, the media rarely gets the opinion of actual experts in the industry. And if they get quotes from so-called experts, those experts remain anonymous for the most part.
This is why it’s so difficult for both beginners and seasoned investors to get credible content about property investments.
Now, some also claim to be experts in the property market. But they most likely have vested interests in what they’re saying.
At the same time, even the media is no longer an independent entity. All media organisations have certain biases that make it difficult to find the credibility of content about property investments. As a result, it’s hard to base investing decisions solely on the news due to the lack of merit.
With that in mind, here’s the four-step process that could help you avoid misinformation about the property sector:
The 4-Step Process
Step #1: Stop reading newspapers
There is this newspaper adage that you may be familiar with. And it goes like this:
“if it bleeds, it leads.”
What this means is that negative news moves the newspeople. So, the negative news is what media organisations report on.
Why?
Because it gets people more engaged.
This adage is still a fundamental tenet of journalism. Whether they realise it or not, sensational and negative news works every time.
But the thing is… it got worse.
There used to be a massive difference between quality media and tabloids. However, these days, most media organisations are acting like tabloids themselves.
For them, it’s all about clickbait. It’s all about getting engagement and readership instead of value.
Quite often, the headline that induces you to click on the article is, at best, an exaggeration. And in some instances, it’s an absolute lie. The headline is an absolute fabrication just to get you to click. And when you click on the article, you find the content of the article doesn’t actually relate to the headline. It’s a form of fraud.
So, to avoid exposing yourself to that kind of content, just stop reading newspapers.
Step #2: Tune out all the white noise from the media
Even if you make an effort to stop reading the news, it can still get past you. Media white noise can be anything from what your friend, family, or colleague has read in the news, to actual news reports that you just happen to hear from your surroundings.
So, tuning out this white noise is a crucial next step to making sure that you don’t fall for misinformation.
As a proactive step, you can ask your close friends and family to stop informing you about whatever real estate development they hear, read, or watch on the news. You can also filter your social media newsfeed to avoid seeing clickbait headlines about the industry.
At the same time, just practice being unbothered if you happen to hear such stories elsewhere. This will take time and patience, but you’ll soon get the hang of it.
Step #3: Do some actual research of your own
Most people would rather read what the newspaper says about the latest price data from CoreLogic rather than actually look at CoreLogic’s price report. Don’t be part of that majority.
Getting accurate information about the industry is necessary for any property investor. After all, you can’t keep yourself in the dark. You simply need to look for alternate sources of information on the property market that are unbiased, fair, and accurate.
Also, make the time to do some actual research of your own. If you’re interested in Brisbane’s suburb market, for example, then visit the place. Check-in with residents. There’s nothing wrong with surveying the area before making any significant moves.
Step #4: Understand the process
Anyone could go buy a house. But it takes a certain kind of skill and knowledge to become a prolific property investor. What’s more, staying up-to-date with what’s going on in the sector is just one part of it.
To survive and thrive in the property investing space, you need to understand the whole process.
This involves so much more than just reading trends in the property market and acting upon them. In fact, I believe that when it comes to being a property investor, the most important thing you need to master is this:
The ability to be able to continue to borrow.
This all comes down to having enough liquidity to allow you to keep going back to the bank and growing your portfolio.
Don’t Just Follow the Herd
Most property investors out there are just simply following the herd. While intelligent people were buying 18 months ago, most investors are still in a wait-and-see mode. It’s because they are afraid of the impact of COVID on the real estate sector.
And in the end, those who wait will wish they never did.
Why?
Because they’ll soon realise that they missed the best time to buy in the best places!
Here’s why the average investor goes about property investing totally the wrong way: they absorb media soundbites and just believe what they read. They are impacted by all of that and fix their decision-making. Worse, they don’t do any real research and they just follow the herd.
If you want to succeed in property investing, you must tune out all the white noise in the background. Instead, think clearly and logically.
Act independently to grow a sustainable and long-term property portfolio.
