The Dunning-Kruger effect teaches us that those who are the most confident are the least capable, and the people who doubt themselves are usually the most capable. It is not difficult to spot this phenomenon in everyday life. For instance, when a young person finishes school, they may think that they have now learnt everything that there is to know about the subjects that they studied. After all, who has ever needed more than a few certificates to succeed in life? The answer is, of course, that it is when you leave school that you start learning. Real-world skills are incredibly valuable. An academically superlative prospective job candidate who cannot think for themselves would obviously be less useful than someone who may not have excelled in school but who is engaged and can use their initiative.
It is not just students though. People who lead full, professional lives in the real world can sometimes fall victim to this sort of thinking too. If you run your own business, or you trade on the stock markets, you may think that you’ve got everything figured out. However, being aware, and more importantly, being able to respond to everything all the time is simply impossible.
This is particularly true when it comes to something like property investment. House prices are volatile and change quicker than some people can keep up. If you are a budding mogul and you want to expand your portfolio, or you just want to invest in a few places and make a sensible living, there are lots of things about which you constantly need to be aware if you are going to make the most of your investments.
The aspect of the property market that changes more than any other is the optimal amount to charge in rent. It can be affected by other rates in the area as well as public opinion (some areas may be subject to government redevelopment programs which make them more lucrative, or some areas may just become rather chic and desirable). If you are going to stay ahead of the curve, you should consider enlisting the help of experts. Rental property management can take the stress out of dealing with tenants and contracts, and it leaves you to make money on your investment while working on your newest, most exciting prospects.
To be at the cutting edge, you need to know exactly how the market is changing. A recent upheaval in the way people look at and monetise their property has come in the form of apps like Airbnb. Where you once had to put an ad in a local paper and interview people for your spare room and then draft a tenancy agreement, you can now advertise your property to people all over the world and have a reasonable expectation that they will want to rent from you. It may be that a business person needs an apartment to attend a week of meetings, or some youngsters want to go to a local music festival and need somewhere to crash, either way, capitalising on the new developments of the property market is imperative to your success.