Successful property investors seek out the right people with the right knowledge and a good track record of successful investing themselves. When working with investment specialists you will hear them recounting key learnings that have guided them through the ups and downs of their investment journey – the real ‘Monopoly board’. Here are five simple key learnings that we’ve learnt along the way, investing ourselves and working with our clients.
Are you buying with your heart or your head?
It’s essential that you treat investments for what they are – assets that are there to help you achieve your financial goals. Being rigorous during your due diligence and calculating projected returns on every potential investment, is the only way to minimise risk and maximise return. If you can’t learn to control your own emotional monsters (greed and fear), you’re unlikely to achieve those financial goals.
Paralysis by Analysis – Are you stuck on the mouse wheel?
Investors all too often get caught in this cycle, trying to find the perfect property that ‘ticks all the boxes’. Although it’s imperative to do your research and due diligence, eventually you need to do something: unfortunately, you won’t achieve your financial goals by simply thinking about them. We often see this play out: by the time the decision has been made, the opportunity has passed. You’ll never make a profit on a deal you never did. This is why it’s so important to engage your team of trusted and independent advisors – your accountant, lawyer, financier and property investment specialist. They’ll provide you with necessary independent advice that will give you the confidence required to move forward and execute your strategy.
Is it getting too easy?
All investors can be guilty of this. Once you get comfortable with investing, it’s easy to fall into the complacency trap. You forget about the impact of interest rates, forget to review your portfolio regularly and fail to act swiftly in changing markets. Retain the qualities of beginner investors: passionate, keen, hungry and involved!
Are you building strategic habits?
Like diets or exercise, successful investing really comes down to self-discipline, focus and consistent action. Most of us know what to do, but we don’t follow through and do it. Regular habits will lead to the results you want.
Smart Investors are strategic investors.
Property investment is like running a business, you don’t invest in what you like, you invest in what works. Investing in property is a good way to grow your assets, there is no doubt about that. However, as with other types of investments, it’s essential that you build a team of specialists, listen to their advice, then create a strategy and see it through. The times we see people come unstuck when investing in property is due to not following the above principals, it’s not complicated, but it does take patience.
Recently there has been much focus on the Australian property market in the media. It’s a constantly changing landscape. That being the case, there are still significant opportunities out there for the educated and strategic investor.
The team at DBA would love to sit down with you to review your property strategy and assist you to continue to move toward your financial goals. If you’d like to chat, click here to get in touch.