The Investor Mindset: How to Think Like a Property Investor and Build Wealth

Your mindset can make or break your success in property investment. In this episode of the Taylored Property Wealth Podcast, we break down how adopting the right investor mindset can help you build long-term wealth, no matter what the market is doing.

Learn how to block out negativity, separate emotions from investment decisions, and stay focused on your financial goals. We share practical strategies for navigating risks, embracing challenges, and making calculated decisions that drive results.

Discover why the most successful investors tune out noise from uninformed sources, seek guidance from experienced mentors, and always adopt a solutions-based approach to overcome setbacks.

If you're ready to stop letting fear hold you back and start thinking like a property investor, this episode will give you the tools to take action.

Chapters

• 0:00 Welcome to the Taylor Property Wealth Podcast
• 31:45 The Complexities of Property Investment Mindset
• 6:10:24 Solutions and Overcoming Challenges in Property Investment

Transcript

Speaker 1: 0:00

Welcome back to another episode of the Taylor Property Wealth Podcast. My name is Casey Taylor, I'm the host of the podcast and in today's episode we are talking about the mindset you must have to be a property investor and if you want to be a successful property investor, there are certain elements you need to have to be able to get to that next level, to get to that goal you want and it is definitely a mindset shift Shit is going to go wrong in property. Property is not all sunshine and rainbows. There's so many complexities in so many different areas and you have to have the mindset to be able to manage that, and not only just over a one, two, three year period, but over a 10, 15 year period, because property is a long game and there's going to be a lot of different things that do take place. So we're going to be talking about calculated risk. We're going to be talking about separating your emotions with property and an investment property versus a property you would like to live in yourself personally. We're going to be talking about being solutions based not focusing on problems, but focusing on solutions to those problems, how you can handle issues, blocking out the noise from mainstream media, family and friends, because that's going to be a big one throughout your journey. Market sentiment, there might be negativity in the marketplace which is ultimately going to affect that sentiment. So they kind of work hand in hand and we're going to be touching on interest rates and being able to stomach not the most competitive interest rate in the marketplace, because you're not always going to be the lowest risk to the bank and that means you're not going to get the lowest interest rate all the time. Sometimes you got to lower your standards a little bit with your interest rates, right, because sometimes you have to go for the higher interest rate to be able to get in. But you're going to reap the rewards. And then it's a matter of being proactive as an investor, having that mindset and then finding solutions down the track to be able to refinance, get a more competitive rate First, off the bat calculated risk A lot of people out there.

Speaker 1: 2:14

They don't want to take risk. I personally believe sitting on the fence and doing absolutely nothing is far more risky, because we hear it all the time. People say I wish I would have purchased two, three, four, five, 10 years ago. They didn't and they missed out on massive capital growth. I spoke to a prospect this week he could have purchased a couple of years ago. Listened to his uncle, who has zero property apart from his owner occupied property, because he reckons the market was going to crash. And then markets are continued to perform and then that prospect's now in a position where they could have built up a couple of assets but they now can't. So you have to understand that, yes, it's risky, but you can go out there and reduce your risk in a lot of ways. Work with the professional who's going to lower your risk and really understand the data, understand residential real estate in Australia and take those calculated risks, because all successful property investors that I see who have built multi-million dollar property portfolios, they're happy to take that calculated risk. It's a massive, massive mindset game when you're investing in property and there's so many investors out there right Buyer's agents, other buyer's agents with massive portfolios focus on their mindset because their mindset is one of the big things to be able to get them to where they are.

Speaker 1: 3:33

Like I said, sitting on the fence and doing absolutely nothing, working for 40 years for someone else and paying off just your owner occupied purchase to rely on the pension into retirement. I think that is far more risky than going out there, taking action, purchasing a couple of properties that are going to perform for you and allow you to achieve financial freedom in the future. Number two separate your emotions when investing in property. I see it's not a massive amount, but there's definitely clients that we work with when we're presenting properties that there is some objections based on little bits and pieces in that property that they don't like. The reality is it's not going to affect desirability, it's not going to affect the performance of that property. It's simply things that they would be looking for if they were to move into that house. But if the goal is to purchase this to build to financial freedom, create passive income, those little things do not matter because it's solely there as an investment vehicle and it's then which we're going to lead into.

Speaker 1: 4:31

Next is being solutions based. So if you do identify a couple of things that you don't like, what is the solution you can put in place to mitigate that or reduce that? A lot of people want to go out there and they want to focus on the problem. Focus on the problem, focus on the problem. What is the solution to resolve the problem? And this can be in any aspect of your life, not just property. That is a massive, massive mindset game that you have to get comfortable with and focus on those solutions, not the problem. What is the solution I can come up with to get rid of that problem or reduce that problem as much as possible, or identify and say that's not even a problem?

Speaker 1: 5:05

I'm just trying to make an excuse as to potentially why not to take action on this, because I see that in the clients and the investors who want to build that portfolio up, they're finding every reason to take action and make that purchase. But some people are trying to find every reason to justify not taking action. Some people don't have the mindset, but I'm a strong believer that you can definitely work on your mindset over time and improve it, so it's something you need to put energy into. So remember find solutions, not problems, and problems are going to smack you in the face, but it's a matter of how can I adapt, how can I pivot and how can I find a solution to keep moving forward. It's the same with your lending right. You're going to get told by the bank no at some point if you're investing for 5, 10, 15 years, but what are you going to do to be able to find a solution, to keep lending or simply getting yourself to the position where they say, yes, you're good to go. It's all reliant on you. You need to take action, you need to change your mindset and move forward so you can keep going, keep continuing to move forward to hit your goals. That's the reality of it issues and handling those issues, those problems that I just touched on.

Speaker 1: 6:15

Property, like I said at the start, is not always sunshine and rainbows. We're dealing with tenants and we're dealing with maintenance, and you could have a tenant sitting in the property for a period of time and nothing goes wrong. And then, all of a sudden, there's a couple, they've broken up, whatever it is, and then things start to go wrong. They don't pay their rent, they don't keep the property maintenance up with lawns and gardens and whatever it is, there's different bits and pieces. How are you going to react to that? Are you going to say, shit, this is too hard, I'm going to sell this asset, get rid of it and I'm just going to keep working for 40 years, retire my own occupied property and rely on the pension? Or are you going to adapt to this, find solutions and keep moving forward and not sell the property.

Speaker 1: 6:58

Right, it's not easy. It's never going to be easy. You have to be able to stomach issues, stomach costs from time to time because tenants might not pay the maintenance, the hot water system might shit itself, the air con might shit itself, or every five years I say you need to paint the property. The reality is there is going to be costs withholding property. But if every five years you have to put in 10, 20k but that property's grown to 300, 400k do the math Crazy amounts of upside, even though you're dealing with some of these problems and it's up to you to set that expectation with your property manager on how they need to handle things. Sometimes it means you have to get in there and you have to do some work yourself and you to set that expectation with your property manager on how they need to handle things. Sometimes it means you have to get in there and you have to do some work yourself and give that direction, set that expectation, communicate with your property manager and make sure things are taking place the way you want them to Block out the noise from mainstream media, from family and friends.

Speaker 1: 7:55

I guarantee someone in your life is going to tell you not to do it, whether it's out of fear and your protection from a family member, whether it's out of jealousy to not allow you to take those next steps, whether it's simply a lack of education. You need to go out there, block out noise from mainstream media as well, who are always bashing fear because that gets clicks. You need to block all all of that out and you need to find some mentors, whether it's a virtual mentor through podcasts, like you're obviously listening to now, or whether it's someone who you catch up with on a weekly, monthly, yearly basis, whatever that looks like, someone who is in the position that you want to be in and take direction from them. Don't take direction from your uncle at the barbecue with a blue wife beater on who says that property doesn't work, property's going to crash, and he only has owned one property at a time throughout his entire life, doesn't have a property portfolio. You need to go out there and select mentors to be able to help you get to those goals, because the reality is listening to someone who has not done it is the worst person to take advice from.

Speaker 1: 8:59

That is the reality, and how many times in the past have we seen mainstream media get it wrong. Predicting 40% crashes in 2018, I think, was that a current affair? There's so many different predictions. Prices are going to go down. Even economists predicting the property prices were going to correct and then, in the right locations, they continue to perform. So block out the noise. Focus on your goal. Understand long-term property performs. What is the price point on this property going to look like in 10, 15 years? And don't get caught up if it goes through a correction for 12, 18 months, because the reality is that's going to happen, but it doesn't matter, because if you hold it for 15 years, the correction that happened 10 years ago and it corrected by 10%, which is natural in a cycle, didn't fucking matter. So that's the reality.

Speaker 1: 9:49

Don't let the sentiment affect you either. It kind of leans in with the mainstream media. We've just gone through a cycle let's call it three years where interest rates have increased and we've now, as this is late February we've seen that first rate reduction of 0.25%. I was purchasing property in 2022 when rates were starting to go up. Everyone was freaking out. Property prices are going to stall. They're going to do this, they're going to do that, and the property purchases that I made in 2022, I extracted equity to make purchases last year in 2024. And now those properties I purchased last year in 2024, I'm going to be able to go and extract equity on later this year and purchase again.

Speaker 1: 10:23

So just listening to mainstream media, listening to sentiment out there holistically, is not the way to go. Again, it comes back to finding solutions, taking those calculated risks, because that is going to allow you to keep moving forward. There are solutions out there. All the time, not every marketplace is going backwards, but it's up to you to go out there and find that solution. Not focusing on all these problems, because there's a lot of people out there with weak mindsets. I see that on socials, people just throwing out negativity, throwing out negativity, this and that the reality is that they're not happy with where they're at and they're trying to justify as to why they're where they are. Last one we're going to touch on they're at and they're trying to justify as to why they're where they are.

Speaker 1: 11:04

Last one we're going to touch on. I feel like I'm just ranting on this one today, but it's so important. It is so important the mindset side of things and it stems into so many other aspects of life. So you can take those principles and focus on your health and fitness or whatever that looks like. Last one, be happy to stomach higher interest rates. The reality is that you are not always going to be the lowest risk to a lender or a bank. But I see so many people go nah, I want the lowest rate out there and if I can't get the lowest rate, I'm not going for it. That is gonna shoot you in the foot and that is a weakness in your mindset. You have to go out there and you have to understand you're not gonna be the lowest risk to banks and lenders and you might not get the lowest rate. But if you have to pay a percent more or half a percent more, but you can go out there and get into another asset that is going to grow far more than what your cash in the bank is going to grow, being devalued daily to inflation then it's a small price to pay to continue to build your wealth and get closer to financial freedom. Okay, so I think that's an important one.

Speaker 1: 12:05

I just mentioned 2022 purchase some property with some massively high rates, but the reality is, maybe it was 10K extra holding costs per year, but then I made 200K on those purchases in a couple of years, leverage the equity out into another asset. And now they will stem into assets later on this year. So it's what you need to do. You're not always going to get the perfect stars aligning, waiting for that perfect day. It just doesn't happen. That's it for today.

Speaker 1: 12:32

I'm going to leave you with a couple of quotes to finish this one off. You miss 100% of the shots. You never take Super powerful, I believe, for property because, like I said so many times, people say fuck, I should have purchased five years ago, because look where prices have gone to and great things rarely come from sitting in your comfort zone. You have to do things differently to get a different result for your future. That's the reality of it. So what are you going to do? What actions are you going to take tomorrow that you're not doing today to get you towards those long-term goals?

Speaker 1: 13:07

Yes, it's going to be scary. Yes, you're going to have to manage problems throughout the process, but you've got to choose your heart right. Do you want to have some problems now and deal with them on an ongoing basis, which isn't going to happen all the time? But it is going to happen, but in which isn't going to happen all the time, but it is going to happen. But in 10, 15, 20 years time, when you're financially free and you don't have to go to work every single day, you've got more freedom, more choices and that passive income, it's going to be well worth it. So choose your heart. I know what I would rather do. I would rather work at it now to be able to down the track, have an easier ride. That's it for today.

Speaker 1: 13:41

I think it was a bit of a rant, but property mindset, or an investor, is super, super crucial. Your mindset is going to be the most crucial part of the puzzle. If you don't have the mindset, it's really the glue that sticks everything together. So without that mindset, you will not be able to go to that next step and next step. Hope you like this one. It's always important. We'll always touch on it again in the future because it is so important. Thanks for listening. I hope you guys have a great week and see you on the next one. Bye.