Balance is the secret to investment success

Balance is the secret to investment success

By Bianca Dabu

Every property investor follows different strategies to achieve their financial goals within their means, but one of the most common aim for people looking to create wealth through property is striking a balance between capital growth and cash flow.

Years of working as a buyer’s agent and the managing director of the property market research company Propertyology has taught Simon Pressley that there is no one way to ensure success in property investment.

Investors can go on to invest in capital cities or in regional Australia, but there is absolutely no guaranteed safe investment.

According to him: “There is no one way… The individual investor needs to have a way that suits them—be focused towards having a proper strategy [and] not be jumping around all over the place. Stick to whatever your own individual strategy is.”

Simon and his team intentionally target locations that show good potential for growth based on their research.

“[Capital growth] should be everyone's prime objective but that's not to say that rental yield isn't important because we all need to put our head on the pillow and if we can't afford things, that's not a comfortable situation to be in,” he said.

“Even if you might be helping them buy one, we also want to be making a decision with them today that's going to complement wherever their second property is going to be… For an existing investor, it's about being mindful of which locations they're already in—we want to pick a location that is going to take into account things like land taxes, which are determined by different states they might already own assets in. 

“[We also look at] the different industries. They might have three properties in completely different locations, but there might be one industry that's really important to each of those particular locations, so we wouldn't be recommending the next location that also is heavily reliant on that industry sector.”

Considering all the strategies that property investors can choose from, property investment has been rightfully deemed as a complicated game by those who have dipped their toes into it.

However, investors who have found success in the business of creating wealth through property know that keeping it simple is the real secret to achieving one’s financial goals.

After all, the property investment landscape is ever-changing, and no one's journey could be too similar to anybody else’s. Having the ability to focus on your goals, find a strategy that works, and stick to it is the simple yet effective process that will keep anyone grounded on the path towards success.

Simon concluded: “It's a changing world and we need to be thinking forward because the window at the next five years is gonna look completely different to what's in the five-year rear-vision mirror.”

Tune in to Simon Pressley’s episode on The Smart Property Investment Show to know more about the inside track on current market conditions as well as a forecast for what’s to come.

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Bianca Dabu

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Balance is the secret to investment success
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