So, tell me how! Buy property or put in mutual fund? Part 2.
Character of a property investor. There are a few characteristics about a property investor:
1. Not risk taking.
2. At times NOT careful about money.
3. Lazy and usually forgetful.
A good property investor might be a product of academic learning. Usually, it is NOT by property investing. This statement is true when you hear property guru talking about their experiences – many of which are LUCKY investments. On the contrary, many also curse property investing as they made calculated investment but failed! Therefore, success in property investing has a lot to do with external factors. It is probably not the special knowledge of the investing – kind of dartboard investor. Only in rare occasions that the reverse is true.
Key reason why a person gets into property investing is because it is not too technical like financial investing. You do NOT need to read financial reports or market reviews like financial investments although it is good to constantly aware of the market sentiment. WHY? Because property investment is very INefficient. You do NOT have much real figures to play with when you want to buy or sell your property. It is about gut feelings.
DON’T get me wrong. I am of the opinion that property investing needs a lot of own experience. This is like doing it over years and not by studying market reports or listening to Gurus. So, mutual fund is about reports, data and performance over other financial investments. Property is about your own ‘data’ of the local information you have – which are likely not so accurate anyway.