Investors should understand that they are purchasing as a means to an end, according to a number of investment professionals.
CEO of Empower Wealth, Ben Kingsley, told Smart Property Investment that while there are many things investors need to consider, “the basic is to always start with the end in mind, and to be able to see what you want.
“A lot of people don’t do enough research or homework in terms of what they want to achieve,” he said.
Often, investors purchase because that are driven by the ‘idea’ that property helps build wealth. While this is true, the type of strategy needed to get an investor to a desired position differs from person to person.
“I don’t think they can always even see specifically where they want to end up," Mr Kingsley said.
Even seasoned investors should review their portfolio to make sure they have a clear goal of where they are aiming. A good starting point is to look at how to replace your current income, looking to provide a comfortable wealth plan.
Momentum Wealth’s managing director, Damian Collins, also told Smart Property Investment that the end goal is a crucial factor to consider, but that dreaming ‘big’ may be the way to go.
“What I say to clients is to set goals and have them big, and work back from there. Retiring with $200,000 per annum and work back from there. Work out the net value. Have the big picture dream and then work back," said Mr Collins.
“Most people underestimate what they can achieve.”
Putting this goal into immediate steps, including detailed six to 12 month plans, will help most investors stay on track.