What’s the difference between those who succeed in property investing and those who struggle to get ahead and fail to make any serious progress towards their wealth goals?
Blogger: Shannon Davis, director, Metropole Property Strategists Brisbane
You’ve heard me say it before: not all properties make good investments, and not all investors will profit from their real estate pursuits.
More often than not, it boils down to these four personal traits:
1. A thirst for knowledge
The investment you make in your own education is crucial to your success as a property investor.
It doesn’t necessarily have to involve a huge financial outlay; it could be a matter of reading regular blogs and websites such as this one, reading property investing books, staying current on the latest policy decisions and economic news, and keeping up-to-date with data related to your specific investments.
Education and knowledge are key to your success because they lay a foundation for smart, informed decisions.
2. A commitment to updating your goals
Want to invest like the smart property investors do?
Then you need to set aside time in your diary at regularly intervals – ideally, every month or quarter – to review your property goals and check in with your current investments.
How are your properties performing – are they living up to the expectations you had when you bought them?
What are your investments’ local markets doing?
Are your rents competitive with the market, or can you afford to increase them?
You can’t just purchase a property with a long-term goal in mind, and then ‘set and forget’ the investment.
Successful investing requires a proactive approach, including a commitment to regularly assessing your property goals.
3. Persistence through the tough times
Do you think the successful property investors get spooked every time a negative real estate headline hits the news?
Do they freak out when an unexpected repair bill is passed on from their property manager, or panic and consider selling when a tenant damages their property?
No – a smart property investor knows that there will be ups and downs, so you need to draw on your reserves of strength and persistence to ride out the tough times, so you can enjoy the positive rewards.
4. A knack for negotiating
I’ve found most successful property investors, business people and entrepreneurs are good negotiators.
That doesn’t mean they look for bargains when they buy property – great investors recognise that they don’t make their money by buying cheap properties, but by buying the right properties.
But they know to negotiate well and how to influence and persuade people.
A knack for negotiating, whether directly or through a qualified buyer’s agent, will put you in a strong position to grow a profitable property portfolio.
If you feel you may be missing some of the attributes on this list, never fear – they can always be acquired! There are no complex secrets or challenging skill sets revealed here.
It all comes down to recognising the basics: a solid education; a commitment to goal setting; persistence through the tough times; and a knack for negotiating.
With these traits, your journey towards property wealth is likely to be a much smoother and more profitable experience.