If you want to become a successful property investor you need a plan of action. Develop a smart investment strategy that suits your situation.
Make careful choices now to keep yourself from emotion-driven decisions that may hurt you for a long time. Speculation can ruin you, so if you’re serious about success you must pay attention to the details.
If you’re serious about success you must pay attention to the details
With that in mind, consider these twelve tips for a successful investment strategy.
Choose your framework first
Don’t delay deciding your strategy. Study the different approaches people use to invest in property and run the numbers for yourself. Calculate the advantages and disadvantages of each strategy and decide what is going to work best for you.
Making these decisions early means you can make then with a cool head and then stick to them when pressed.
Research is key
Your investment property is just that—an investment. You need to know what you’re getting into, so don’t skimp on your research. Be willing to pay for up-to-date information.
Don’t trust to luck
Many first-time investors are stung by buying in an area someone told them was about to ‘boom.’ Years later, the properties in the area are still at much the same value, and the investor is stuck with a figurative dud horse.
Don’t trust to luck or ‘get rich quick’ prophets. Invest in areas with long-term reliability.
Invest in areas with long-term reliability
Keep an open mind
Find out where the money is and invest in those suburbs, whatever your personal opinion of the area.
It’s better to place your investment in a small property with high demand than in a large property with low demand.
Price isn’t everything
The right property in the right location may cost you more now, but you’ll reap dividends later.
Invest in a team
You can’t know everything. Employ a team around you and count the money you spend on them as part of your investment—because every dollar you spend on a good team can repay you 200%.
Every dollar you spend on a good team can repay you 200%
Get professional valuation
An unbiased opinion of a property’s value helps you make a clear-headed decision.
Know your limit
Don’t risk everything for an investment. Protect your emergency buffer in case you hit unexpected expenses or lose your job.
Refinancing helps you maximise the value you get from your mortgage, allowing you to maximise savings and pay off your investment sooner.
Even if you make a mistake and spend too much on a property worth too little, don’t throw the towel in. The market continues to rise, and all is not lost.
Stick to your strategy
Keep your cool
A rash decision based on an emotional high can take a long time to repair. Stick to your strategy, and if in doubt, get a second opinion.
Our finance professionals are always ready to discuss your investment strategy. Contact us now to set yourself up for investment success.