What I wrote was a collection of observations of how the typical property investor behaves. Judging by the number of 'thumbs up' from fellow Hotcopper posters, it's obvious that many people here know a property investor or two who display some or all of those character traits. Clearly people can relate to the points I made.
It's quite interesting to see the offense taken by some property investors on this thread, when in fact my post was merely written with the intention of discovering the mentality of the typical property investor. It helps us to understand the unusual rationale behind their investment decisions. The points I made were factual - they are genuine observations and were certainly not fabricated.
My post was always going to strike a nerve - but only to those who perhaps identified some of those traits in themselves. To the other property investors who aren't like that, or those who have made sound decisions in their rental home forays - well, you wouldn't have taken offense and you would have nothing to worry about because you don't fit the 'typical' category that I described.
Further to my original post, I believe there is one single character trait which separates a good investor from a bad one, whether it be in property or shares - and that is the cutting ability to call a spade a spade. A successful share trader is not afraid to decisively identify a dog stock - it's going down, it's not looking good, sell it, cut your losses, move on - it was a dog. However, the typical property investor seems blissfully ignorant to the changing market in front of their very eyes, and they will only see their precious investment through rose coloured glasses. They seem to the lack the crucial ability to question their strategy when the market changes before them.
I can only conclude that these people, by and large, are impressionable and very easily influenced. Through their middle-class upbringing, they have been trained to believe that there is some sort of hidden secret to creating wealth that only rich people know about but rarely reveal to the public. This gives rise to the titles of their favourite books - did someone mention "Rich Dad, Poor Dad"? By purchasing their first rental property, they thought they were doing something different from the crowd and going 'against the heard' - and then the superiority complex kicked in. They were unstoppable. But, in fact, they were doing what a large number of unsophisticated middle-class Australians do in attempting to become wealthy. What was once a reasonably sound strategy to make a dollar has now become a very ugly situation for the unfortunate ones left holding the hot potato.
Investing is about making serious money - not in 20 years time, not in 30 years time, but now. Half of them will be dead by then. And if it's not going to make money now, then get out and find something that will. Time to call a spade a spade.
