Ever wondered how some property investors seem to tick all the right boxes when it comes to achieving their goals? There’s some insider secrets that not everyone knows about - and we’ve lifted the lid on five of them for you.
Check them out below, and work out how you can implement them in your investment planning for the New Year.
- Don’t be scared of debt
Debt is seen by many as a bad word - but this is actually not the case when it comes to successful property investment (obviously within reason though). Debt should be seen as a platform to help you grow your wealth, by helping to increase returns on investment.
Fear often holds people back from investing in property, and fear of debt and failure is a big one. However it is hard to achieve without taking some form of risk, and as long as you can feel comfortable with your level of debt, and have the right knowledge around dealing with it, then it should just be seen as a necessary step for future gains.
- Farm, don’t hunt
A majority of the most wealthiest investors are those who buy property and hold onto it for the long term. In a sense, they farm their investments for future gain, alongside correct financing. This cancels out the need to ‘buy a buyer’s market and sell in a seller’s market’, trying to predict the next hot spot, and all sorts of other tricks you may feel like you have to jump through.
Simple and smart is key, and once you have an appreciating asset, you can use the equity in it to buy another property, and so on, till you have a large portfolio with a steady cash flow.
- Always be learning
One of the biggest mistakes many investors can make is thinking they know it all, whether they have been in the game five years or 15. There is learning to be gained by everyone, and it is important to never think you are too experienced to listen to helpful advice or even ask for guidance from others.
The thing is, you don’t have to do everything everyone tells you you should, it is just about continually looking to increase your knowledge in all areas of property investment - you never know when one little morsel or tip will actually come in handy.
- Look to manufacture capital growth
It is one thing to sit on a property and wait for capital growth to boost the value of your asset over 10 years, it is another to buy an investment that you can further develop for more income potential.
Perhaps there is a way you can refurbish or renovate the house, or subdivide the land to sell - thinking outside the square when it comes to buying property is a great way to help set up a better ROI.
- Let the experts do what they do best
Along the same lines of always be learning - you should also have an open mind to take advice from experts, as well as employ the right people to do the right tasks.
This includes choosing an accountant who specialises in property, a lawyer who knows the ins and outs of property law, a banking consultant who can help with providing the best finance options, and a property manager who not only looks after the day-to-day responsibilities of a property investment, but can also work alongside you as an adviser by assisting you to proactively plan for success.
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Keeping risky tenants out of your investment property is definitely key to achieving success - download our guide now for all our tips on ensuring you choose the best people.
