Yannick Callens introduces us to the psychology of real estate and how feelings inform action every time.
In this real-estate article, I want to return to the mindset one needs to have during your real-estate purchase, the follow-up with tenants and the work that is necessary.
From the many seminars that I have conducted in the world of personal development, I have noticed several things: 80% of all that we do and undertake is psychology, and, of
those who undertake real-estate investment, more than 80% are unaware that psychology plays a real part in real estate. Ultimately, it’s your own mindset that will guide you through the real-estate process, and not just paying attention to prices or the market and its trends.
A formula that I appreciate and that from my point of view is very interesting and simple to apply is this one (in real estate as in any field in your life): E + C = R – Event + Choice = Result. In each event or situation, it is the choice that you make that will bring your result. This is important to know if you have to make a decision like choosing and buying a property, and I would even say that our unconscious mind has a real influence on our decisions.
Another aspect I learned during my training and coaching – over our entire lives, our thoughts about the present, being aware of the moment, represent only around 1% of our thought processes. That is to say, 99% of our thoughts are focused on the past (and often the regrets of the past) or the future (and its anxieties, many of which never arrive).
It is also interesting, when we have to make a real estate decision, to take into account a simple question – ‘Why?’ In real estate, this is very important, because you should know why you intend to buy real estate. Recently, at a real estate seminar, a speaker, Mahery, explained why he was investing in real estate: “For my family, I know that my mother will
not have much in her retirement.” Personally, I was very touched by this ‘why’.
Do you really know why you want to make real-estate investments? Are you aware that you are ready to be in debt to the tune of several hundreds of thousands of euros for a period of more than 20 years? And by signing with a person whom you do not know, who if he asked you for €20 in the street, you would not give it to him?! In most cases, this ‘why’ is an unconscious signifier and will have an direct influence on you thoughts to feelings to action.
In real estate, I recommend this formula: Be focused, know precisely what you want. Adopt the best strategies, by informing yourself as much as possible, by following the people who have already accomplished what you want, even if it is the purchase of a studio! Take action! Henry Ford said: “A vision without action is just a hallucination.” And the difference between fear and courage is action!
To return to the point of the best strategies and information, real estate remains a safe bet. In Belgium, a 4-bedroom house has an average price of €285,000 (up 2.9% in one year). Houses with 2 bedrooms have an average price of €200,000 (an increase of 5.3% in one year) and apartments have an average price of €182,000 (an increase of 2.5% in one year). In Brussels, a villa has an average price of €847,500 (up 3.4%), a two-bedroomed house has an average price of €376,000 (up 4.2%) and an apartment has an average price of €199,000 (up 4.7%).
Do not underestimate your emotions in your real-estate choices, they are stronger than you think. Thoughts lead to feelings and feelings to action and this is what will allow you to achieve your result.