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Having a well-thought-out property investment strategy is vital for property investing success, according to one industry expert, and there’s a number of questions you can ask to help keep you on track.
In conversation with Smart Property Investment, the chief executive of Buy Australian Property, David Pascoe, has revealed a number of factors that are integral to investing success, including: time frames, goals, income objective, purpose, vision, expectations, opportunities, exit strategies and options, as well as the obtaining of expert advice from the right people.
“Simply put, if you don’t know where you are going and what you want, you will not get there,” he advised.
“All successful property investors have a strategy, they don’t just go out and wing it and buy property with[out] knowing the facts first.”
“It’s insane and dangerous” to do otherwise, he warned.
Comparing it to buying a car, Mr Pascoe highlighted that no one would buy a brand new $50,000 car “without test driving it first, looking at the specifications and performance, etcetera”.
Sharing his insight with Smart Property Investment, the CEO has highlighted a total of nine questions investors should be asking before they buy a new property – regardless of whether or not it’s their first time buying or the 10th addition to their portfolio.
Those questions are below:
1. Does this property fit into my long-term strategy?
2. Is the return on investment suitable for me and my strategy?
3. Have I got the right/correct data, information, facts, figure, and reports?
4. Have I got my finance sorted out first before I go looking?
5. Am I listening to the right person with regards to advice?
On this point, Mr Pascoe said that too many people listen to their family and friends who have no experience at all.
6. Am I being sold something that might not be right for me?
According to the CEO, “this happens when people deal with companies that don’t ask the right (or any) questions about a client’s needs, wants, goals, and expectations”.
7. Is the company I am dealing with reputable or dodgy?
Whether it’s a real estate agency or buyer’s agency, Mr Pascoe advises looking at the company’s record of success.
8. Am I doing this with the right/correct process and procedures in order?
9. Am I approaching this as an investment?
According to Mr Pascoe, as an investor, it is vital to leave emotions out of the decision-making process; “this is a money-making project, and there are no room for emotions.”