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Charles Ellis on emotions and investing decisions (less than 3 minutes).
Like any investment, residential property must be bought at the right price and the right time, not based on the need to get into the market quickly due to the Fear Of Missing Out. And the costs will be higher than expected.
Investors who follow the herd invariably end up buying near the tops when everybody else is buying and selling near the bottom. Investors need to resist the temptation to get caught up in the hype of the daily news and noise.
It's not surprising that research shows high levels of satisfaction for self managed portfolios, as investors are effectively rating themselves. Regardless of the reason, few SMSFs will return to an institutional fund.