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Why do some property investors flourish, while others fail to gain traction? This one single quality makes all the difference.
Blogger: Philippe Brach, CEO, Multifocus Properties and Finance
When executed as a long-term strategy, investing in real estate is a proven method for growing your own personal wealth. However, not everyone who builds a property portfolio will enjoy a profitable outcome – and there’s one primary reason behind this.
It’s not the property’s location. Purchasing in a sought-after, tightly held street, suburb or town will give your investment the edge and allow you to leverage your profits sooner, of course, but investors all over Australia have success with properties situated in various locations – some better than others. While location will help you on your journey, it’s not going to make or break your success.
It’s not the property’s attributes. You don’t have to own the nicest home in the most prestigious street to profit from property; indeed, some investors base their entire strategy around purchasing ugly ducklings, with the belief that owning “the worst house in the best street” is an ideal opportunity to tap into capital growth.
It’s not about timing the market, either. Buying at the bottom of a property cycle is obviously desirable but, with enough time in the market, most investors stand to make a solid profit.
What is this one specific quality, then, that separates those who are seriously successful in real estate, and those who fail to progress past one or two property deals?
Put simply, it's stamina.
The reality is that many people are excited about the idea of investing in property, but they’re not prepared to deal with the hard work involved in buying, owning and managing their investments.
To be successful as a property investor, you must have stamina and a staying power that crushes ‘investor fatigue’ when it threatens to overwhelm you. You also have to be willing and prepared to ride out the tough times to enjoy the good times.
Experienced investors understand this, because they've generally survived a few stressful situations and they've made it to the other side. If you’ve yet to weather your own investing setbacks, here are a few strategies that can help you draw from your reserves of stamina and avoid throwing in the towel prematurely:
There’s a reason why many consider investing in property as “another job”: it’s because, just as with your career, it can take an investment of time and energy to reap the rewards. If you stay focused on your long-term goals (and you have strategies in place to deal with financial emergencies), you’ll learn not to be disheartened by short-term setbacks as you work towards creating wealth through property investing.
An investment is an asset or item purchased with the expectation that it will generate income or appreciate in value in the future.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.