Property investors should ‘design their decade’
Property investors who are looking to build wealth through the asset class are being urged to plan their property journey or risk failing, industry experts have warned.
In a recent episode of Investing Insights, Right Property Group’s Steve Water and Victor Kumar explained to investors how property investors should “design their decade” to achieve their investing goals through property.
They noted that most investors ride on this fallacy of properties doubling every seven to 10 years.
“For someone to be really successful in property investing and not end up in the 1.8 million property investors which only own one property, to be able to own multiple properties and not just own property,” Mr Kumar said.
Mr Kumar believes “life happens”, with property investors letting opportunities pass by instead of challenging themselves to be successful property investors.
“To be really successful in property investment, to actually get the fruits of their labor, there needs to be a planned progression in the journey,” Mr Kumar said.
With education about the property market, Mr Kumar believes its now “unforgivable” if investors start their property journey and do not have a property plan.
“Most investors start without a plan, but then they’re not aiming towards anything. And that’s the main message that we want to convey is that if you haven’t started with the end in mind, whatever it looks like to you, then really you’re heading towards a disaster,” Mr Kumar said.
Investors’ plans should be easily digestible, with overly complex plans failing, according to Mr Kumar.
“This is where I am, this is what needs to happen, this is where we’re heading, this is the end result and then, you flesh it out per quarter as to what’s happening with that,” Mr Kumar continued.
Finally, the property investors advocate for plans to be flexible, with rigid plans likely to fail.
Using host Phil Tarrant’s property plan as an example, Mr Kumar said: “What we’ve achieved now is probably nowhere to what the initial plan was because it’s changed because we’ve adjusted and pivoted for any market change, change in the business, change in the circumstances, and of course, as the portfolio grows, it changes, the dynamics of it".
To hear more insights from Mr Waters and Mr Kumar, click here