No successful investor has ever made a mistake, and Scott O’Neill of Rethink Investing is no exception. It is a normal part of the investment – no one is foolproof. The problem, explains O & # 39; Neill, is when people think that a mistake means that the investment journey is over.
"When people come to us to invest, we have to be more open about our own mistakes," says O’Neill. "We learn more from our mistakes than from our successes, so it's important to discuss how they made us better investors in the process."
O’Neill cites his own decision as an example. A few years ago, he bought a site in Adelaide that he considered a development candidate – not something he does as part of his usual strategy. It was part of a larger development and a handful of properties had already been built. O'Neill says he was looking for "quick win" and in doing so "was ahead of me".
"I saw that there was a potential for subdivision, but I bought at the height of the market, overpaid and I ended up with a poor yield because of that, "says O'Neill. “The market was just too calm. I should have kept to the strategy that I knew how to work – it was not a total disaster, but it certainly could have been better. »
"Investing is a long-term game, and you don't necessarily need to disconnect the plug just because a problem has arisen"
The main problem, as O’Neill sees it, is that he was too obsessed with the idea of ??undertaking development rather than doing proper research.
"It's hard to give up," says O’Neill. "It is a mistake that we see many investors making. They get too attached to a property that is not profitable enough or costs them money. Sometimes it is enough to take the loss . "
O'Neill points out that it is possible to turn a situation like this into a positive outcome – an object lesson on what not to do in the future. He also recommends that you consider the best way to use the funds and find out to what extent the conservation of such a property will really contribute to achieving your wealth creation goals.
"Could the money be better used elsewhere?" he asks. "Maybe you have other investments that could be funded by offloading, or you could potentially consider tax write-offs for the loss on the property."
In addition, O’Neill warns that you will not necessarily need to retire at the first sign of a “problem”.
"Investing is a long-term game, and you don't necessarily need to unplug it simply because a problem has arisen," he says. “People sometimes have situations like a bad tenant and want to discharge themselves as an instinctive reaction. But it is a multi-year or multi-year process, not something that should be ruined by a few bad months. »
Yet O’Neill still recommends talking to a professional.
"If you think things are going wrong, go talk to an advisor," he says. “Getting personalized advice for your particular situation is crucial. It's easy to get caught up in ego-focused decisions, and having a more neutral third party can really help to counteract that. »
About Scott O & # 39; Neill
Scott O’Neill is the founder and director of Rethink Investing, a BRW Fast 100 real estate investment firm specializing in the search for rare, positively oriented properties across Australia (commercial and residential).
Scott is an experienced and active investor who was able to retire at the age of 28. With a current portfolio of 32 properties valued at $ 20 million, Scott is one of Australia's most successful young real estate investors. He has a passion for all aspects of property, especially helping others find great deals. Because of this passion, he founded Rethink Investing
WANT TO KNOW MORE?
Rethinking investment helps everyday Australians easily enter the commercial real estate market. She also specializes in assisting clients in purchasing high-yield residential properties using the same successful investment strategy. For more information, call:
Ph. 1 300 965 551
www.rethinkinvesting.com.au
Main suburbs:
Darlington
,
thebarton
,
marrickville
,
Penrith
,
kariong
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