THE POWER OF LONG-TERM GRATIFICATION
Long-term gratification is something that all successful property investors practice, so why is this the case?
Well, we are all creatures of habit; and one of those habits is the desire for instant gratification, no matter what it is we seek the gratification from.
This is made all the harder in today’s world due to social media and the ability to search anything on the web instantly, as well as the ability to acquire instant finance through banking applications.
After reflection on multiple studies, it is clear that from an early age instant gratification is ingrained in all of us, with very few capable of delaying the desire.
Those who can adopt that discipline tend to succeed more in many facets of their lives, including:
Accumulation of wealth through strategic investment assets
Being healthy in mind, body, and spirit
Personal relationships with friends, family, and colleagues
It is never more relevant than when trying to make your money work harder for you and an imperative lesson when investing, particularly when investing in property.
Why Property Investors Need Long-Term Gratification
Property is an illiquid asset that requires time and incurs significant costs to buy as it does to sell. Hoping to get rich overnight simply does not occur, so adopting a long-term vision in property investment is an imperative financial lesson.
The track record of holding a good investment property in accumulating wealth is there for all to see. Those results are most evident from those whose patience paid off.
Property has always worked in market cycles with cycles usually taking around 7-10 years to complete.
Far too often I see investors, either purchasing at the wrong time of the cycle or in the wrong markets which is another conversation for another day.
The most common fault is …. we get impatient and sell after doing all the heavy lifting only to find a year or so down the track their investment has “suddenly” shown growth and wished “if only I had held a little longer”.
As Warren Buffet wisely said: “Wealth is the transfer of money from the impatient to the patient.”
The vast majority of successful property investment stories come from those who held on, had the discipline to maintain the investment for the long-term, and did not succumb to giving up because a ‘result’ was not coming fast enough.
It is true that “good things come to those who wait”, particularly those who purchased in good investment properties.
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Warren Jacobs - Senior Property Investment Consultant at Meridian Australia
P: (02) 9939 3249
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.