What makes a good property investor?
Many people dream of being the next big property investor – what’s not to like about having a passive income while you kick back and reap the rewards?
But buying a property for investment purposes is different to buying one for a home to live in, and it does take a bit more than just buying a house or unit and renting it out to make that ‘investor dream’ a reality.
We’ve been in the business of property for nearly 50 years, and we’ve worked with thousands of successful investors; while the investors we have worked with have different budgets, properties and backgrounds, there are several traits they have in common.
Here are some of them:
Done their research
While many know the process of buying property, when you buy one for an investment purpose you need to know more than just the costs involved with the purchase.
Every investor we work with, understands property is a long-term investment; they have their homework and researched what they need to consider.
As well as knowing their budget, and the financials involved with running an investment property, they’ve researched what makes a good property for investment purposes.
This leads to our next trait.
Planned a strategy
Investing in property is a business, and like any new business, it needs a financial strategy to make it successful.
Whether it’s for early retirement, tax benefits, or for simply wanting an extra income for now, almost all of our investors have a plan of how they want their property to work for them.
The strategy accounts for the ups and downs of property cycles, and turbulent economic times; they know what financial risks they are prepared to take and ensure financial buffers are in place to mitigate risk.
No emotional strings
Like every good business owner, property investors keep their emotions out of it. Committed investors have set goals and they stay on track with their strategy.
They take the time to think through challenges and no matter how much of a hard sell they’re getting for a ‘no-brainer’ investment property, or how perfect the property appears to be, if the numbers don’t add up, they walk away.
Surrounded themselves with experts
You can’t possibly expect to be an expert at everything, and a successful property investor is only as good as the team around them. From accountants and mortgage advisors to trusted property managers, it’s imperative you have a good team of qualified and licensed professionals and specialists. Our blog on who to go to for property advice can help you find your team.
Adaptable
While investors may have bought some great properties, they don’t get complacent; life events happen, financial situations change.
Property investors review their strategy at intervals to make sure they are on track; they look at what is bringing the best returns, what needs to be managed or changed and what time frames are involved.
A tenacious mindset
Investors don’t stop at the first challenge – they stay committed and find a way round it, asking for help from experts, and look for ways to make their lives easier.
This often involves using a property management company to manage the tenants!
We do more than simply manage and sell property and we’re keen to share our wealth of knowledge and experience to help your property investment journey run smoothly, and for you to get the best out of your investment.
Get in touch if you want to know more about our property management services.
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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