It’s really easy to dream of being the next big property investor and having a passive income while you kick back and enjoy an early retirement. But it does take more than thinking about it to make the dream a reality.

We’ve worked with thousands of successful investors in our 40 plus years of business. While the investors have different budgets, properties and backgrounds, they all have the following traits in common:

Make plans

Whether it’s for early retirement, getting on the property ladder or wanting extra income, almost all of our investors have a plan of how they want their property to work for them. They have set a strategy at the beginning of their property journey and have a long-term vision of where they want to be in a few years’ time.

Most importantly, property investors review their plan at intervals to make sure they are on track and make changes when necessary.

Do the research

All our investors have thoroughly researched the market and considered all the options open to their circumstances and budget.

Budding property investors will not only thoroughly research types of property, prices and areas (looking at trends and potential developments that could influence property values), they’ll also look at the rental demand and what the current and proposed rental property supply is. By the end of it, they’ll have figures for rents, values, yields, annual property price changes, what’s in the planning pipeline and property build costs.

The internet is usually the first port of call for most people, but some people also go on seminars, read property magazines and speak to experts so they can get a feel for what they should be looking for.

Good with finances

Most of our investors aren’t brilliant mathematicians, but they are comfortable when dealing with figures. They know what they can afford, what their expenses are and made sure there’s a bit left over for the unexpected.

Speak to a financial expert to find out your budget and always ask for all running costs, such as council rates and strata fees when considering a purchase.

If you handle your personal finances well and have good financial habits, the chances are you’ll be good at managing the finances behind a property investment.

Regardless of whether you’re a property investor or not, sound financial management is a good discipline to have anyway. If you think you can’t afford an investment property, look at where you spend your money and where savings can be made. Make a budget and stick to it. If you keep your personal finances in good order, before you know it, you might be on the road to owning an investment property.

No emotional strings

Property investors are business people and keep their emotions out of a deal. No matter how much of a hard sell they’re getting for a ‘no-brainer’ property, or how perfect the property appears to be, if the numbers don’t add up, they walk away.

Patience

They say that patience is a virtue, but it’s also a trait essential to property investors. The chances are you won’t make a million overnight. But, if you’ve done your research and managed your money well, after time, investing in property can help you reach your financial goals. Remember, the best things come to those who wait!

We’ve helped hundreds of people realise their financial dreams through property investment and we’d love to help you too! Either drop into the Cardiff office, call 02 4956 9777 or drop us an email to mail@newcastlepropertymanagement.com.au and our experienced and knowledgeable team will answer your queries.

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