Australians love investing in property, and it’s no wonder why. Property investment helps you grow your wealth through capital growth and provides additional income via rental returns.
So, what can we learn from the people who do it well? Let’s take a look at some of the traits of successful property investors.
They are proactive about self-education
In order to stay ahead of the game, seasoned property investors are proactive about self-education. They know the property market is ever-changing, and that one must keep up to speed with developments to succeed.
Successful investors understand the economic factors that drive markets and the way market cycles work. They can recognise when the market is shifting and act early. Importantly, they seize opportunities.
If you want to be a successful property investor, you need to be proactive about self-education. Here are some tips:
They rely on the experts
Smart property investors understand that while it’s important to nurture their own knowledge, they can’t know everything. Everyone has limits.
The key to success is leveraging the abilities of experts in their field.
Mortgage brokers, real estate agents, financial planners, accountants, conveyancers, buyers’ agents, property managers – all of these professionals are resources to be drawn on in order to make smart property investment decisions.
They’re not complacent
Interest rates fluctuate, even if the cash rate remains unchanged for some time. Successful property investors recognise this and continually review their loans to make sure they are still competitive.
They’re also open to using various tools and strategies to build their wealth. For example, they may refinance their loans to include offset accounts and redraw facilities to save interest. Or they may set up lines of credit to renovate their properties, thereby potentially increasing the value of their investment and the rental return.
They have vision
Experienced property investors see the big picture. They understand the nature of property cycles. Sometimes it pays to buy and hold property; other times it’s best to flip. Having vision is what sets the successful investor apart from the mediocre one.
They also plan for contingencies. Buying an investment property comes with financial benefits, but there is risk involved. For example, what happens if the tenant falls behind in rent or something major needs to be repaired? What if the property’s value falls? Smart investors plan ahead and have strategies in place for these kinds of challenges.
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