Investors looking to supersize their property portfolios might want to take up this advice from this investor with a massive portfolio.
When expanding an investment portfolio to 30 properties, it can be a good idea to experience other markets or ideas in order to excel, according to property investor Luke Moroney on the Smart Property Investment Show.
“I think there’s a lot of people that come to me and say, ‘How did you do it?’, and I think everyone’s story is going to be a little different,” Mr Moroney said.
“You can’t just compare yourself to someone else, because incomes are different, the timing of that situation when you start investing is going to be different.”
Mr Moroney said that property investing is not always about the money; it’s about learning experiences that equip investors with insights to predict which decisions will lead to the highest gains, minimal losses and reduced stress simultaneously.
“I think the learning aspect, I think people forget about sometimes … once you have skin in the game, you learn so much more,” he said.
While keeping your eye on the prize, it can be critical to embrace investment hurdles and setbacks as learning curves, to employ in the future as a “what not to do” strategy.
When dealing with a market cycle, Mr Moroney said it’s best for investors to not be discouraged when there is a market downturn, or decide it’s going to crush.
“Back in 2014, ’15, ’16, or even 2013, where finance was a lot easier than it is now, and you could actually apply for two loans at a time … there is a big factor of difference between then and right now,” he said.
Meanwhile, excelling as an investor requires knowledge of supply and demand when considering portfolio expansion in the future.
Mr Moroney said that before purchasing a new investment, investors should wrap their head around if they can get new tenants and if there is likely to be growth due to an undersupply of property in the suburb they are observing.
Further, regardless of time or place, investors should always be aiming to pursue low-risk strategies geared towards properties with potential for growth, he claimed.
“You just don’t know which particular property is really going to have the great capital growth. And maybe one property is just going to go extreme for a reason unknown right now,” Mr Moroney said.