The Complete Guide: How to Overcome Inhibitory Mindsets – On Your Way to the Deal of Your Life (Photo: ShutterStock)
Tom, a 31-year-old bachelor who works in marketing, managed to save NIS 250,3 and decided, three years ago, to explore the possibility of buying an apartment for investment in Portugal. Tom received recommendations from friends about an expert in the field, and came enthusiastically to an introductory meeting, accompanied by his mother. The expert presented them with several options, but while Tom was open to listening, his mother - just the opposite. She was skeptical of every bit of information she was shown, even after she had been provided with all the documents and data.
The inhibitory mindset ingrained in her, too deeply as it seems, has actually made her skeptical about the deal – even before she heard it. This attitude also affected Tom, until he lost confidence and finally gave up the deal.
In retrospect, he discovered that another family had bought the apartment he had in mind. This was a purchase transaction for an apartment on paper, in which only equity can be paid – in this case NIS 250,20, without taking out a mortgage. Once the apartment was ready for living, it could be sold to others. Two years later, that's exactly what the family did.
She sold the apartment, whose value has risen by 25 percent in the meantime. Since she paid only equity, which was about 80 percent of the full value of the apartment, the family's final profit from the sale was about <> percent. And what about Tom? Left with the bitter taste of missing out, or as my wife magic used to say - whoever hesitates, misses;
The apartment was sold two years later - at a profit of 80 percent (Photo: ShutterStock)
Everyone knows this, the decision to invest in real estate is mainly a rational decision. In fact, any financial investment should be made after in-depth research, market research and data analysis.
Still, emotional elements often creep into the process, such as fears or barriers based on failed past attempts, either ours or those close to us. This is natural, and especially relevant when it comes to investing in real estate abroad, an area where sometimes emotion decides instead of common sense.
So how can real estate transactions be examined rationally and not emotionally?;
Meital Duvdevani, a senior NLP coach and business consultant, and Adv. Itay Mor, a real estate developer and accompanying real estate investors, who specialize in international real estate investments, dealt with dozens of missers as part of their work.
However, every missed opportunity is a lesson, and with the help of Duvdevani and Mor, we have prepared a guide for you: So what are the psychological barriers that make us shy away from investing in real estate in general, and investing abroad in particular, and most importantly - how do we overcome them?
The full guide is here:
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"It's too dangerous"
Many tend to think that buying real estate abroad is a riskier step than buying in Israel. Is it?
On a mental level, it is difficult for us to understand that the act of buying real estate abroad can be as safe or unsafe as in Israel. This is because our brains are prone to generalizations, and a large part of the public has adopted a misconception that buying real estate abroad is risky.
The way to overcome this is to examine each transaction in its own right, with all its specific special characteristics, and not to rule out in advance and sweepingly, just because it is conducted outside the borders of Israel. There are many countries whose regulation in the field of real estate is no less stringent than Israel and even more, and even if the concern is in place, this should not prevent us from examining the transaction abroad with objective eyes.
There are also quite a few people who believe only what they see with their own eyes. It is certainly possible to go see a property abroad: fly to the destination country, visit and examine the transaction in the field, make sure that the building and marketing company is reliable, get to meet physically with the developers and sellers, see city plans, architectural approvals and more. If it is not possible to physically travel abroad, you can request that they send videos of the property, and more. Real estate is actually much more tangible than a study fund and shares.
"Where's the catch?"
Many Israelis find it difficult to trust as consumers. When this is the dominant narrative, the brain searches for the stories it needs to prove itself right, just like a Polish aunt who longs to say, "I told you so."
The newspapers and reality are full of stories of buyers who managed to invest and leverage the investment nicely, but what many remember is the failures.
One of the most prominent examples of this is the story of Adi Keizman, after which there were those who refrained from executing deals that were about to be signed overseas, simply because of the resonance the affair received.
Meital Duvdevani, researcher and expert in the NLP method and senior facilitator of guided imagery (Photo: Efrat Zion)
There are quite a few checks and actions that can be taken to make any transaction safer. For example, Keizman's group of investors, which took care not to transfer all the money in advance, and on the other hand made sure that there was a warning note in the contract and other legal collateral – de facto was not harmed. But those who are looking for where they are being cheated, will not come to check it at all.
If you want to avoid this barrier, you should feed yourself success stories, not failures, and at the same time study the field and know exactly what to ask and ask in order to reduce risks.
In other words, have you read this article and all you will have left of it is Adi Keizman's story, which will prevent you from even considering investing abroad? This means that there is a misconception that makes the decisions for you.
"It's too good to be true"
Real estate prices in Israel have left many Israelis traumatized. The same happened to Avi and Inbal, a couple in their 40s, who wanted to buy an apartment in Israel. When they read in the newspaper that it is possible to buy an apartment abroad for significantly lower sums than in Israel, they simply refused to believe it. Even when they were presented with all the documents proving that the deal was "legitimate" and genuine, and they spoke to the contractor abroad, who offered to come and see the project, they simply refused.
Patterns of fear may color the whole picture and the financial data presented in a way that makes the deal unworthwhile, just because it's "too good." In the case of the couple, the brain simply refused to digest the information that contradicts this assumption.
On the advice of an expert, Avi and Inbal agreed to start with a purchase for a lower investment amount than they planned, and in a deal in which both risk and profit are smaller. The first real estate acquisition is the hardest and this deal allowed them to "get on the field". A year and a half later, they were already buying another property, after the confidence created in the process translated into great confidence in future deals.
"I don't understand real estate investments and don't know where to start"
The very thought that you need to understand investments in order to make them is a perceptual distortion. A potential investor doesn't need to know everything. It is important that he knows what to ask. It is also important to seek the help of a real estate professional who can be trusted, who will provide information about aspects that the investor is not familiar with. The process is similar to that undergone by any specialist - be it a doctor or a computer technician.
Moreover, the basic knowledge in real estate is not found only in professionals. You can definitely open Google and search on your own where good investment areas are.
Rely on reliable sources: professional real estate websites and publications of data from the media. Talk to as many more people as they purchased. Look for a place where there is a lot of tourism, a place where there are prestigious universities and a lot of students live. For information that is more professional, or difficult to find, use experts.
Adv. Itay Mor, real estate developer and accompanying real estate investors (Photo: Alona Avisdaris)
"According to reports, about NIS 1.42 trillion, or 12 percent of Israeli assets, is accumulating almost no return. These huge sums are eroding in current accounts, while if they were directed to other investment channels, they could bring nice and significant profits," Meital Duvdevani and Itay Mor explain.
"Under these conditions, breaking through negative and limiting thought patterns that will make it possible to understand where the real inhibitions that prevent change are essential processes on the way to making better financial decisions."
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