When it comes to property investment, we have a simple philosophy at Teach Me About Property: Hold, Not Sold. This concept may seem straightforward, but it’s one of the most common pitfalls for investors.

One of the biggest mistakes property investors make is selling their properties too soon. This can lead to significant regrets, especially when the market turns in their favour after they’ve sold. Let’s delve into a couple of real-life examples that highlight the consequences of not holding onto investments.

Example 1: The COVID-19 Panic

When COVID-19 hit in early 2020, the world faced unprecedented uncertainty. Many feared a major economic downturn, and some investors panicked. One student from Teach Me About Property decided to sell her Queensland investment property, thinking it was the safest option.

However, the market didn’t crash as expected. Instead, it surged, with property values climbing significantly. The property she sold is now worth over $700,000, meaning she missed out on a substantial gain. This loss happened because she chose to sell rather than hold onto the property.

Example 2: Selling at a Loss in 2023

Another example involves an investor who purchased a property in 2022 for $420,000. In 2023, they sold the property for $368,000, believing they were cutting their losses. However, properties in the same area later that year were valued at $550,000 and showed a significant market increase. The investor lost out on a potential $130,000 gain because they sold too soon.

Patience Over Fear

These examples underscore the dangers of panic selling. Whether it’s due to fear of market crashes or concerns over rising interest rates, selling in haste can lead to significant financial losses. It’s like jumping off a ship during a storm; it doesn’t make sense when you could wait for calmer waters.

As the famous quote from Braveheart reminds us: “Hold, hold, hold!” Money loves time and patience. In the property market, being patient can often lead to better outcomes. While it may be tempting to react to market fluctuations, holding onto your investments and allowing time to work in your favour can be a more profitable strategy.

Stay the Course

For anyone involved in property investment, the message is clear: don’t let fear drive your decisions. There will always be rumours of market downturns and challenging times. But sometimes, the best action is to be still, patient, and let the market do its work. If you can do that, you’re more likely to see success and reach the top of the investment mountain.