Investors’ guide: How to purchase property in a buyer’s market
How do you buy a property in a buyer’s market? We give you tips on how to make it work in your favour. ...
An investment expert gives his tips on staying on course and kicking goals over the coming year.
Speaking on the Smart Property Investment podcast, Lachlan Vidler, director of Atlas Property Group and member of the board of Property Investment Professionals of Australia (PIPA), provided listeners with his five-step guide to achieving your property goals this coming year.
Step one – goal setting
For Mr Vidler, the most important step for achieving your property goals in the new year is goal setting. But more important is not the act of setting the goal but following through. Only 8 per cent of people reportedly stick to their new year’s resolution or goal; for this reason, it is crucial that the goals set are followed through.
An important factor in goal setting is making sure your goals are “smart” goals. That is, they are “specific, measurable, attainable, realistic and time-bound”. Setting smart, achievable and compounding goals is crucial for those aiming to reach their 2022 property this year.
Another important factor Mr Vidler stressed was the aspect of accountability. By sharing a goal, whether it be “I want to buy one property this year” or “I want to expand my current portfolio”, sharing and accountability are pivotal in ensuring all goals set are achieved.
Step two – plan, plan, plan!
Keep it simple, stupid (KISS) is the key to planning and achieving your property goals.
“If you want to buy a property in 2022, maybe you need to make your plan a little bit simpler first. Maybe it’s, ‘I need to save $10,000 more than what I have.’”
“Start small,” Mr Vidler said, “and because, like you said, they compound over time. It might be one month, ‘we’ll save a few thousand here or a few hundred.’ Maybe the next month is, ‘we’ll reduce a bit of debt.’ Just make some sort of plan around your goal.”
A crucial factor in successful planning is the simple action of writing the plan down. Mr Vidler states that achieving the outcomes of one’s plan is 40 per cent more likely to eventuate if the plan is simply written down.
Step three – research and engage
For Mr Vidler, this step is the most difficult due to the many elements required. Prospective buyers must look at factors such as “where do you buy? What do you buy? How do you buy? What should you be looking for? What shouldn’t you be looking for?”
Mr Vidler believes that this step is crucial because the research and engagement will educate investors and develop their own methodology for future and current purchases.
Step four – execution
All three of the previous steps become futile if the purchase is not executed. It is a step that Mr Vidler believes requires a strong level of trust in either your individual methodology or in the systems and practices of a professional adviser.
“And it’s the hardest part because that’s the point where everybody’s been asked to take that leap off a cliff, put their money where their mouth is and spend hundreds of thousands. If in the case of some people, millions, on buying a property where the outcome is not guaranteed,” he said.
Step five – debrief for future success
During the height of the Vietnam war, there was one navy seal team that massively outperformed their counterparts. They were shot down at a rate of one-to-two, as opposed to the average one-to-six ratio. A review into why this team was so exceptional concluded that the difference-maker was?
Debriefing after each mission.
“Debriefing sets yourself up for success better for the next one [property],” Mr Vidler said, adding, “maybe it’s less stress. Maybe it’s you get more dollars off the price. Maybe it’s you get a better asset.”
Through debriefing around your experience of purchasing a property and translating this experience back to the overall goal and the initial plan to achieve this goal, investors are analysing the processes and therefore building a platform for future prosperity.
Listen to the full conversation with Lachlan Vidler here.
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.