We have all heard about the property investment millionaire who fixed up a cheaply acquired property and made hundreds of thousands in profit in a few weeks. If you want to know what the property investment millionaires do to successfully profit and create wealth from their investments, Id like to share a few tips that can help you achieve your wealth goals sooner.
Ive always prescribed that you do not need to be rich or wealthy to become a successful property investor. However, you do need to be aware of what you are doing to ensure your investments bring about profits in the long-term. And knowing what youre doing means you need to surround yourself with people that are already excelling at your goal which is to become a successful property investor.
It is vital to be aware that the investment strategies adapted by millionaires not only reflect in the investment decisions they make, but also the positive mindset they need in order to be successful property investors. I had thought about investing for several years prior to a mental shift I had that allowed me to start seeing how I could better my life through property investing. Any individual can accumulate wealth from investing in property provided they make use of core strategies and remain focused.
1. Do Not Be Afraid of Debt
While the majority of people view debt as a risky and uncomfortable proposition, property debt can be one of the best ways to create wealth. It is important to calculate the amount of debt you are comfortable with and be confident about borrowing for purposes of your investments. Ensure you have enough capital to cover the normal costs associated with an investment loan. You should be investing in properties with the objective of getting them to earn you as much money in the shortest time possible. Its important to select the best properties that will likely create this kind of return for you. A lot of our clients come to us for that sole objective we have access to some of the best investment properties across Melbourne in areas with a proven track record of good results.
2. Invest, Dont Speculate. Buy, Dont Sell
Most safe property investors seek to purchase quality properties situated in blue-chip areas wherever possible. The logic is simple: after a while the property begins to appreciate in value, and build up equity which can be used to buy other property investments. Buy your property in areas where there is good infrastructure, jobs, schools, and population growth. Even better, purchase quality property that is in high demand and is close to public transport, work nodes, and lifestyle precincts. Using this tip alone will ensure that even if the property market in your state falls overall, your portfolio will still remain stable due to the fact that there is demand for well-located and affordable property. When the market begins to rise again (which it will), your portfolio will take advantage of that rise.
3. Be Patient and Consistent
Dont expect to become a property investment millionaire overnight. It is essential to evaluate all the advantages and disadvantages of property investing prior to jumping in. Make it your goal to increase your investments over time, and look to leverage off the equity you create to add additional properties to your portfolio. Do not allow yourself to be put in a position where you will need to sell due to taking on too much debt than you can handle. It is vital to treat your property investment as a business by ensuring you understand the market, finance structures, and taxation considerations. All of this takes time to learn, but with the right partnerships all of this information is readily available.
4. Go Against the Crowd and Look Out for the Ripple Effect
It is advisable to go against the crowd when it comes to property investment. As was famously said by Warren Buffet, a property investment billionaire, sell when they buy, and buy when everyone is selling. In addition, it is crucial to look out for the ripple effect. For instance, when one suburb experiences great capital growth over a short span of time, while a neighbouring suburb has not, there is a very high chance that the neighbouring suburb will have a delayed capital growth briefly thereafter. This implies that when people cannot afford to live in the most desirable (expensive) neighbourhood, they will opt to buy in to a cheaper neighbourhood often right next to the expensive one!
5. Develop Passion and be Driven
It is normal to doubt yourself and wonder if you are doing things the right way. However, it is important to stay focused on the bigger vision and goals of creating wealth through property investment. Your drive is instrumental to enabling you to take risks not likely to be taken by others. It is well known that 50% of first time property investors sell their property in the first 5 years. In addition, most of those who do retain their properties rarely add more to their portfolio. This demonstrates one core concept those that do not develop a passion for property investment do not attain the financial wealth they desire. Determining what drives your passion is pivotal in commencing the journey towards wealth creation. It is vital to clearly envisage and define what success means to you and staying focused on your property investment goals. It is important to rely on a proven formula that works. At Investment property Help we know what that formula is and I encourage you to get in contact with me today to discuss your investment property and wealth goals.