Forums / Property Investing / Help Needed! / Analysis paralysis

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  • Profile photo of Shell HShell H
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    @shell-h
    Join Date: 2010
    Post Count: 32

    Hi All, I have just come to the realization that I am suffering from a severe case of analysis paralysis, and I need to shake myself out of it!  

    I have found in the past that my first step to overcoming it is usually recognizing that it is happening, refocus on goals & try to move forward from there.

    Just curious to know anyone else's tips for overcoming the dreaded Syndrome!

    Michelle

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
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    There's a few ways to think about it.

    Firstly, all that knowledge is worthless if you don't act on it.

    Secondly, if you've determined that property investing is right for you and you believe that you'll generate wealth from it over time, then there's an opportunity cost involved when you don't do anything.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of jmsracheljmsrachel
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    If its the fear of taking a risk that is holding you back, just remember you take risks everyday of your life. You take a risk going to work, you take a risk going shopping…. Be brave and see where it takes you.

    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
    Join Date: 2009
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    Sometimes people are so deadset on finding "the best deal" available that they cannot commit to any deal for fear that a better one will come along tomorrow.  All the while property values go up and opportunities are missed.

    Jacqui Middleton | Middleton Buyers Advocates
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of kong71286kong71286
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    @kong71286
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    I think 'Analysis Paralysis' all comes down to 'Fear of Failure'.

    Here is an article with useful ideas related to this topic

    You could also consider enrolling in the the RESULTS program with your own personal mentor

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
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    JacM wrote:
    Sometimes people are so deadset on finding "the best deal" available that they cannot commit to any deal for fear that a better one will come along tomorrow.  All the while property values go up and opportunities are missed.

    Spot on – that's the main cause of it.

    It's impossible to find the "best" IP or the best PPOR – there are always going to be some boxes left un-ticked.

    Cheers

    Jamie 

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TerrywTerryw
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    Just out of interest are you an Engineer or IT worker?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of Shell HShell H
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    @shell-h
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    Yep i think that is definelty it, trying to make sure of the 'best' thing to do, deciding to do something & then looking over the shoulder and thinking 'but what if I do that?'

    Great tips, and I have given myself a good talking to, and reminder that to do nothing is probably the worst option!

    Thanks guys for your tips, it's onward & upward for me again now smiley

    Michelle

    Oh & no Terry I am not an engineer or IT worker?  do they tend to over analyse?

    Profile photo of TerrywTerryw
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    Yes, It workers and engineers love the old spreadsheets

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of DerekDerek
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    @derek
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    Hi Shell,

    Set yourself a timeframe and stick to it.

    Profile photo of Jamie MooreJamie Moore
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    Shell H wrote:

    Oh & no Terry I am not an engineer or IT worker?  do they tend to over analyse?

    Yep, it's often a trait.

    Sounds like you've got the knowledge – now you just need to act on it…..it will get easier after the first purchase :-)

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Shell HShell H
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    Ah Terry you have it in one!  I have been working on my spreadsheets for weeks – accounting background so you are pretty spot on!

    Derek, great idea on the timeframe, that will stop me from buzzing around in circles trying to find 'the best deal' as JacM & Jamie said.

    Cheers

    Profile photo of Shell HShell H
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    @shell-h
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    Jamie,  That's the trouble I already have 3 IPs & a PPR, I still get paralysed every time before I move to my next purchase. 

    You would think I'd have learnt by now !

    Profile photo of xdrewxdrew
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    @xdrew
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    An old saying from business school.

    The large goal confuses, the small goal excites.

    In other words .. the large goal seems so huge that you hesitate at its ability to happen .. stumping yourself in the process.

    The small goal .. tiddlywinks ! Can be done easily .. so it gets done. And you feel good for having achieved something.

    So instead of dreaming a million dollars in 3 years and not doing anything towards it effectively .. break that down into bite size chunks and close-to-achievable parameters. Stuff you can deal with easily. And because you reach your little goals, your big goals become that much easier to accelerate towards.

    My first investment .. i actually wrote down my acceptable parameters FIRST. And then i went around to find a property that was close to or matched the criteria. I was lucky .. i found 4 possible options .. and then took one of them. But I created the goal first .. before the outcome.

    A latter goal was to find six reasonably placed development sites or crap houses. Again .. the goal first .. property second. And yet again .. i got more options than I actually needed. I went halvies with a developer mate to get another 3 sites I really couldnt afford. And because of the timing .. the land doubled and we actually managed to just sell instead of doing anything.

    The outcome is unpredictable. The reasoning for the purchase must be secure .. and the foundations for the investment must be there. Anything else .. is based on your ability and knowledge base to achieve that best possible outcome. And you work with the easiest outcome that provides the best return.

    Profile photo of IntrigueIntrigue
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    @intrigue
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    Hee Hee Hee I am the master of Analysis Paralysis! and (yes) I dont have any IP's. I dont really have any money though so…

    I read this thread with interest and being the analyst I am, I thought I'd throw in a differing perspective for debate (yep I can talk myself round in circles for a very long time, about anything, sometimes which is the best washing machine, other times what to have for lunch.. owe my head hurts).

    Anyhow my theory is that if I am still in analysis mode I'm not ready. I havent yet got a clear picture on the goal or perhaps I am not confident in the outcome. Now I agree that the biggest part of this for me is a 'fear of making a mistake' and 'waiting for the best deal' but I can also say that there are many times I just wanted to jump in and purchase a property that in hindsight I would not have made money on and the holding would have caused me stress. 

     

    Perhaps those of us born with the ridiculously analytical mind, have for a reason? No not an engineer or IT tech.

    Profile photo of FreckleFreckle
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    @freckle
    Join Date: 2012
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    AP is a mapping problem. No map!!

    The term doesn't define the problem because paralysis isn't the issue rather a continuing effort to either analyse or a fear of acting because you have no template that tells you when you have completed the analysis.

    People get stuck with AP because they have a haphazard ad hoc approach to problem solving. The solution is to develop a methodology that suites your goals/objectives.

    • Define the goal (5 IP's in 10 yrs)
    • break the goal down into bite sized chunks (1 IP/2 yrs)
    • develop a measurable set of criteria (region, demographic, value range, property type, etc)
    • develop a financial model (pos/neg gearing, debt/equity ratio, P/E ratio etc)

    If you look at successful experienced investors they are always highly organised and structured in their approach. They have a strategy, a plan to accomplish the strategy and a set of rules to operate by. 

    The wannabe who suffers from AP lacks at least one of these if not all of these attributes.

    Profile photo of FreckleFreckle
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    @freckle
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    Intrigue wrote:
    Hee Hee Hee I am the master of Analysis Paralysis! and (yes) I dont have any IP's. I dont really have any money though so…

    Then you don't have AP. You have NM (no money)

     

    Quote:
    Perhaps those of us born with the ridiculously analytical mind, have for a reason?

    An analytical mind is essential. Without it you lack the ability to effectively critique dynamic data. 

    Profile photo of DWolfeDWolfe
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    @dwolfe
    Join Date: 2009
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    Great suggestion there from Feckle and all the other usual excellent minds!

    I have a couple of big goals, then I start breaking them right down. Set a timeframe, even if it seems slightly unachievable, you'll make it happen if you want it badly enough.

    Stick the goals to the fridge, or somewhere else highly visible. I have to explain to my kids what stuff means that I have stuck to the fridge, it's a really good reminder!

    And take every day as it comes, pick one thing, tackle it, pick another tackle it etc etc.

    The last thing I do is celebrate when I have a win, doesn't have to be big, then you get used to feeling the accomplishment.

    If that all fails, I have a good whinge to get it out of my system, then I move on.

    The goal setting is really important, it stops a lot of the fussing around with 'will I, won't I?" because you start to 'know' what you need to do, and you can get on with it.

    Keep going Michelle, one foot in front of the other, you can win it!

    Cheers

    D

    DWolfe | www.homestagers.com.au
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    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
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    Freckle wrote:
    AP is a mapping problem. No map!!

    The term doesn't define the problem because paralysis isn't the issue rather a continuing effort to either analyse or a fear of acting because you have no template that tells you when you have completed the analysis.

    People get stuck with AP because they have a haphazard ad hoc approach to problem solving. The solution is to develop a methodology that suites your goals/objectives.

    • Define the goal (5 IP's in 10 yrs)
    • break the goal down into bite sized chunks (1 IP/2 yrs)
    • develop a measurable set of criteria (region, demographic, value range, property type, etc)
    • develop a financial model (pos/neg gearing, debt/equity ratio, P/E ratio etc)

    If you look at successful experienced investors they are always highly organised and structured in their approach. They have a strategy, a plan to accomplish the strategy and a set of rules to operate by. 

    The wannabe who suffers from AP lacks at least one of these if not all of these attributes.

    Fantastic post and agree 100% – it deserves a pressing of the little thumbs up icon.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of mattstamattsta
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    @mattsta
    Join Date: 2011
    Post Count: 604

    You  need to think hard and decide for yourself what are your causes of your analysis paralysis. Are you afraid to fail? Are you afraid to take actions?Do you think too big instead of taking small steps each time? Think about it and also read the article I have included. I have found great tips there. 

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