Waiting for a market crash before investing? Get real.

One of the most common excuses I hear people these days for people not investing in real estate, is that they are waiting for a market crash before buying.

My response is, if you're saying that then you're lying to yourself. You'll never buy anything, even if and when the Toronto real estate market does “crash” (however you define that).

How do I know that you’re lying?

I know you’re lying because just a few short years ago, we all witnessed the biggest real estate market crash in the history of the world - and even then you didn’t invest in anything!

Of course, I’m talking about the real estate crash in the US, where prices in some markets plunged 70 per cent from their peaks.

Add to this, the Canadian dollar was at or even above par at the same time this was happening.

The absolute perfect storm of opportunity happened, yet you didn’t take action and now you're telling yourself that if prices in Toronto fall 10 per cent, you’re going to jump all over it. It's not going to happen!

Fear gets in the way

The underlying problem is that fear is stopping you from taking action, and it will continue to prevent you from taking action, even if prices do ‘collapse’ in Toronto.

The truth is that there are great opportunities to invest in the market right now. In fact, there are always opportunities in every market – whether up, down or sideways. Seasoned investors know this and are always taking action and seeking out opportunities.

Here’s what to do instead

To move forward and make your first investment, you need a different approach to be successful. You can use a simple thinking tool called the 4Cs created by Dan Sullivan.

It goes like this:

1. You need to first make a commitment to yourself: “I am going to invest in real estate.” This is the most critical part that so many people fail because, they never commit to doing it in the first place.
2. You need to have the courage to take action. “I’m going to do something new (like invest), even though I haven’t done it before.” This is the part where you have to overcome your fears and take action.
3. Once you've done it, you automatically develop a new capability. “I now know how to invest in real estate.” This is the part where you grow.
4. Having a new capability always increases your confidence. “I feel more confident now that I’ve done it, now I can move forward and do it again.” This is the part where you feel better than you did before and are ready to do it again – and even help others do it too.