DRINKING THE KOOL AID?
Looks like another weekend for your favourite cool beverage! Wherever you’re at, we hope you are enjoying the sunshine and warmth.
We know many investors will be using this precious time to refresh, and re-energize and simply enjoy being with friends and family. We are also aware that real estate conversations are happening at parties, beaches, and family gatherings. Beware the temptation to drink the Kool Aid!
“Drinking the kool aid” is an expression that generally means “to follow along blindly” or “to believe or accept an idea without asking questions.”
In the real estate investing world, there are many gurus, mentors and coaches. Add to that a plethora of experts, with a variety of opinions, and it’s very confusing for a newbie! Who do you listen to? Who do you follow? Do you believe the group that says we’re headed for a major correction in the real estate market (pick any province). Or do you follow the group that says, “once the fourth wave is over, the economy will roar back to life.” If you listen carefully, both sides have compelling arguments.
Some investors will just wait for the dust to settle. Other investors will adopt the “a confused mind says ‘no’” attitude, and will invest in stocks instead. And yet other investors will point to the opposing viewpoints and use that as their evidence that real estate is a bad investment.
What do we do? We listen to everyone! But then, we apply critical thinking to each data point. Yes, we separate the facts from the opinions. But facts and statistics don’t stand alone—they are measured against our favourite metric: trends. And then the trends are judged against the bigger picture. And finally we add in what we call the wild cards, for example, a fall federal election.
Why have this conversation in the middle of summer? Because we have become aware of groups and people who speak with passion and confidence—but who might be leading their followers into higher risk situations. We want to encourage all of our friends to think for themselves. Consider a variety of viewpoints. And stick to your WHY, your goals, your systems. Then seek out ways to make your systems and your investing even better.
If Covid has taught us nothing else, we have learned that the world can be unpredictable. That has left many of us seeking certainty, and tempted to follow whoever sounds the most believable. In schools these days, all of the kids are taught critical thinking skills as part of the overall 21st Century Learning model. We hope all of you adults will also continuously ask questions—even if the “news said,” or “Mr. Fave Expert said.” Then step away from your fears, and take strategic action.
