Why the best property investors succeed: 5 habits that separate the pros from the rest
The most successful property investors aren’t obsessed with yields or hotspots, they focus on strategy, diversification, timing, and teamwork to build resilient, high-performing portfolios – according to one of Australia’s leading investment experts.
Traits, not timing, are what define Australia’s most successful investors, according to Arjun Paliwal on The Smart Property Investment Show with host Phil Tarrant.
Paliwal, CEO of InvestorKit and co-host of The Property Nerds podcast, joined the show to unpack five traits he says are consistent among top performers.
The first is diversification, both in asset types and locations, which Paliwal sees repeatedly across portfolios worth tens of millions of dollars.
“The first trait is actually simple as diversity in asset types and diversity in locations. And so this was very common among the multi-eight-figure portfolios we reviewed,” he said.
This includes both residential property, which can offer leverage and growth potential, and commercial assets to provide reliable income, especially as investors scale.
Geographically, successful investors don’t just chase hotspots, but spread their assets across the country.
“What I found is they were open to [both] capital cities and regional centres,” Paliwal said.
He said market downturns rarely hit all regions at once: “It’s probably twice in the last 50 years where we’ve seen all markets move, say backwards or forwards at the same rate … that is a 48-year odds in your favour.”
The second trait is sweating the strategy, not the small stuff.
“So I found a common trait among [the most successful investors] was really doubling down on the questions [and] where they’re trying to go with the strategy,” he said.
But once the plan is in place, they don’t get hung up on minor property details.
Thirdly, top investors aren’t yield-obsessed, but they weigh returns against their broader goals.
“They don’t want to turn this into a ‘I’m addicted to property’ … They want to do what’s optimal for them to get to the result,” he said.
The fourth trait is the ability to act when ready, not when the market seems ideal.
They invest based on preparedness, cash flow, borrowing power and portfolio strategy, not headlines or hype.
Finally, they build strong teams, with the pair noting that the most successful investors do not go on their property journey alone, rather, relying on experts on finance, strategy and data to guide their decisions.
To listen to the discussion, click here.