Are dentists risk takers by their very nature?
So I was sat in the gym cafe reading the weekend Telegraph and I saw this article. It was all about how the government is setting out to remove the risk of getting gazumped or having your sale or purchase fall through after your offer has been accepted.
Now I’m no great fan of this government’s recent policies in relation to being a landlord, Section 24 (aka The Landlord Tax) being one major reason. However, in this instance I actually agree what the government are trying to do.
And this got me thinking. Whilst change and uncertainty is clearly never desirable for someone moving home with their family, actually, if we remove the general public from the equation and look at it from the view of property investors it’s a little different.
Bear with me on this because I realise what I’m saying probably sounds counter intuitive or even plain wrong…
So let’s look at something which isn’t the property market – the stock market. In fact, no - let’s look at something much closer to home. Let’s look at your journey from undergraduate dental student to owning your own practice.
Sure, the easy path would have been to remain an associate for the rest of time and you’d probably have had an easier life. But no, you decided that you wanted your own practice.
So, why was that?
Of course, you’ll have your own reasons but I’ll put money on the table that when it came down to it, you chose this path because you were prepared to accept the risks and uncertainties in favour of the much greater positive outcomes.
You were prepared to put up with the vagaries of staffing, the uncertainties of cashflow (especially in the those early days) and all because you believed that over time your efforts would be rewarded and you would end up owning an asset - something which had real value.
By choosing this route of course you were also accepting the responsibility of taking control of your own destiny. The same in business in general and certainly the same in the world of property.
As a landlord you will always be at the mercy of external factors such as government legislation, taxation and generally many external pressures.
And most landlords and rookie investors stress out about this. They will tell anyone who will listen (whether they care or not) that this is the end. These landlords and property naysayers will always declare that this is the end of making money in property.
But when I speak to my clients, some of whom are dentists, or I attend one of the many property networking events in my locality where there are seasoned investors what do I hear?
Well actually what I hear is quite the opposite. I hear people talking about the opportunities!!
So why is this?
Is it because property dentists and investors are naturally optimistic?
Maybe, but given the ups and downs of the property over the years I personally doubt this.
If not optimism alone what is the reason?
Well let’s refocus and bring things back from dentistry to something a little more akin to property. Let’s take a look at investing on the stock market.
If the stock market was predictable, even consistent, what would be the end result? Would everyone have success and be super rich? And would there be any superstar stock brokers? No, surely not because the market would be so predictable as to render their skills and experience practically worthless.
The reason why people make money on the stock market (and in property) is BECAUSE and not despite it being changeable.
Look back at your own interests now and think about all of the opportunities in your world created by the need to do things differently. Opportunities driven by change and external pressures.
The key to success here is not to lament the changes and hark back to a time when things were ‘easier’ but to seize the opportunity and find out for yourself what works right now and in your part of the world. The key is flexibility.
As a dentist you’re in a privileged position. You’re bright, you’re educated and you have a career which allows you to invest to buy assets and create wealth.
So take this time to think about what you’re going to do to take advantage of the current climate. What are your plans when it comes to property?
If you’d like to discuss them and potentially get some help making them a reality then let’s find a time to have a chat.
Author note: Daniel Sperber is a property consultant, mentor, founder and author of BhamPropertyBuzz.com an award nominated property blog.
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