Are you thinking about investing in property? It’s one of the safest forms of investment and hundreds of thousands of Australians are using it to secure their financial future.
Becoming successful in property management is all about getting into the right head space, and what better way to do that than taking a look at what successful property investors do.
- Successful property investors invest with their heads, not their hearts.
Property investment is all about building future wealth. That should mean making money – that’s the long-term goal. No one enters the property investment market with a desire to lose money, but not losing money means making smart decisions. One of the best pieces of advice we can give fledgling property investors or those wanting to make the move into property investment in Australia is to make decisions based on facts rather than emotions. Most property investors will never live in their investment properties, so take the emotion out of buying an investment property – it’s not your home. You want the property to be in a location that will attract tenants and therefore has a better chance of being tenanted. In order to produce a profit you need to buy an investment property that appeals to tenants, not to you or your family. Leave your emotions at the curb.
- They invest long term
Property investment is all about building future wealth and gaining financial independence; this doesn’t happen overnight. If you think that investing in property is a sure-fire get-rich-quick scheme you are in the wrong business (and destined to fail). Successful property investors diversify their property portfolios and look for solid investments that will increase in value over an extended period of time. This is called a growth strategy and it will work well for you if you can stick with it. If you come into property investing with a long-term commitment in mind you will outlive those in it for a quick buck.
- They’ve done their research
Entering into property investment without doing any research is a very bad idea that has the potential to cost you a lot of time and money. Successful property investors do thorough research. They understand the cyclical nature of the property market and they know when to buy and sell property. They also spend time researching potential suburbs to invest in. To be successful, get to know the demographics of a suburb you’re interested in buying into. Who lives there? Is the area populated by young families? How many schools are in the area? How is the local transport set up? Are there shops nearby? Identify areas of an interest and educate yourself on weekly rents in those areas. Do your homework and you will be rewarded.
- They have a plan
Everyone has heard the saying If you fail to plan you are planning to fail, and while it is a little cheesy the sentiment is true. Not having an idea of what you’re hoping to achieve is like flying blind. Spend some time identifying your goals for property investment and have a chat with a financial planner to marry your goals to your income.
- They get advice from experts
Even experienced property investors need advice. In order to make smart investment decisions it’s important to get solid advice from qualified professionals. At a bare minimum you should speak to experienced real estate agents, property managers and property investment specialists.
It’s important to remember that even the most successful property investors started from nothing; they probably had the same questions, concerns, fears and doubts that you do. Follow our advice and you’ll be on the road to success before you know it.