Property investing is not an easy game where you can make a small fortune overnight. Property investment is a long term plan, where you need to know what you want to achieve and how you’re going to do it. There are many pitfalls and mistakes you want to avoid, so here are our top tips on how to be a successful property investor.
Treat It Like A Business
Successful property investors know that property investment isn’t a side project. They treat property investing as if it was a business. Set goals with tangible timelines and write up a business plan. Having a business plan will allow you to focus on what you’re doing and how you’re going to do it. Setting goals will help to keep you accountable to your property investment plans too. Review your goals and plans regularly, at least once every 6-12 months, and adjust them accordingly if needed.
Focus On The Long Term
Property investing is definitely a long term strategy. Yes there will always be random external factors which may result in a quick win for some, but generally, if you’re in property investment it needs to be for the long haul. Make sure your goals and business plans focus on the long term nature of this sort of investment strategy.
Know Your Risk Attitude
If you’re investing in property, there will always be an element of risk involved. Knowing your attitude to risk is crucial to successful property investing. Speak to one of our financial advisors in Perth to discuss your financial planning and risk needs.
Do Your Research
If you’ve not been involved in property investment before, make sure you do your research first. Look at what areas would be good for investment, speak to and partner with knowledgeable real estate agents and familiarise yourself with factors that will affect your investment values such as zoning laws, historical prices, local facilities, proximity to schools and transport, etc.
Find A Great Mortgage Broker
Having a great mortgage broker as part of your strategy can help you achieve your property investment goals. They’ll be able to help you get the best deals on the properties you invest in, as well as be able to tell you where best to use any equity you already have. Our mortgage brokers in Joondalup can help you when it comes to financing your investment properties.
Don’t Follow The Crowd
Following the crowd should never be your focus. Just because everyone else is investing in a particular area or housing type, doesn’t mean you should be. Focus on your own strategy and follow it to achieve your goals. Other people may have their own goals and plans – don’t fall into the trap of making them yours if they don’t fit your investment plans.
If you’re interested in developing a financial plan for your business, whether it’s property investment or anything else, get in touch with LUDA Financial Solutions today. Our financial planners in Joondalup can help you with business continuation planning and business succession planning to help you keep your business running even if you aren’t around.