| Having just returned form a short cruise in sunnier | | | | and study to support my decision, my wife however, |
| climes, I feel refreshed and ready to jump headlong | | | | would have a "feeling", either in support of or against |
| into what I believe will be a very exciting and | | | | my decision. In every instance, her support has |
| challenging year ahead. | | | | ensured a successful transaction from our families' |
| As usual, on vacations, I have the opportunity to | | | | point of view. On the odd occasion where I pushed |
| spend a little more time reading, and this time was no | | | | ahead on the evidence from my data, but against |
| exception. I took with me a fascinating book by | | | | her intuition, the purchase was not successful! |
| Malcolm Gladwell, Blink. Malcolm Gladwell is the author | | | | I am not proposing that we all run out and buy |
| of another best selling book, The Tipping Point and | | | | homes without thought, but I am suggesting that the |
| Blink is equally captivating and thought provoking. | | | | challenge today is that consumers are caught like |
| Essentially, in the book, Gladwell probes the ability for | | | | startled deer in the headlights, confused because of |
| the human mind to make decisions accurately with | | | | information overload and defaulting to not making |
| what we consider to normally believe to be a lack of | | | | decisions and hence avoiding mistakes. The truth is |
| information. He terms this process "thin slicing" and by | | | | there are many opportunities that are being |
| no means suggests that all decisions should be based | | | | overlooked in the process. For the first time buyer, |
| on more of an intuitive input but stirs up a mental | | | | prices are very favourable, selection is better than it |
| discussion on why the mind has the power with so | | | | has been for many years and mortgage rates are at |
| little information to make apparently accurate | | | | an all time low. For the investor, access to credit is |
| decisions. | | | | positive and there are some very good opportunities |
| This topic has always intrigued me and personally I | | | | to acquire properties that either cash flow or offer |
| have learned to use my wife's more powerful | | | | potential for upside growth as the economy cycles |
| intuition to aid me in decision-making. Gladwell goes so | | | | back. Those people who are brave enough to move |
| far as to study the results of different groups of | | | | now will benefit in the future. There is a saying that I |
| purchasers, those who intently research decisions to | | | | like that indicates that there are three types of |
| buy a product and those who make a more intuitive | | | | people in the world, those that make things happen, |
| purchase. In the study he found a trend towards | | | | those that watch things happen and those that said |
| more successful decisions being made intuitively with | | | | "what happened?" It is very pertinent to today's |
| higher value purchases. | | | | economic reality I believe. |
| I have mentioned in previous articles that my | | | | In reflecting on the cruise ship experience, I look |
| personal belief is that we have too much information | | | | back on a time when 2,500 people were spending |
| available to us and it often creates a form of | | | | money freely, laughing and joking, telling me that |
| "decision constipation". Many years ago the media | | | | they personally were not impacted by economic |
| industry was behind the curve on information so the | | | | woes and were free of media impact. When I arrived |
| delay to us as readers or consumers was | | | | back in Canada I found friends asking in reality, how |
| compounded. Now, the media is able to create the | | | | many people in Western Canada will have a T4 slip |
| news based on our google or yahoo search trends | | | | that varies radically from 2007 to 2008 to 2009. The |
| and very recently someone mentioned to me that | | | | answer is very few! Most people are still collecting |
| this economic challenge might be referred to in the | | | | pay checks the same as they were two years ago, |
| future as the CNN recession... interesting thought | | | | are paying less in interest payments (substantially!) |
| indeed. | | | | and can access capital if required for their home |
| My point in the discussion is that in every instance, | | | | purchase. |
| when it came to purchasing a home or building a | | | | In 2009 let's hope that we don't simply "watch things |
| home, I would have a habit of doing much research | | | | happen" I know which group I will belong to. |