Australians love investing in property, and it’s no wonder why. The property market offers a myriad of opportunities to potentially grow wealth, irrespective of one’s professional background or skillset.
However, there are certain habits that successful property investors often have in common. Let’s take a look.
They are proactive about self-education
In order to stay ahead of the game, seasoned property investors are proactive about self-education. They understand that the property market is ever-changing, and that one must keep up to speed with developments in order to succeed.
As a result, 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. And they can seize opportunities where possible.
If you want to be a successful investor, you need to become an avid learner. Here are some ideas:
- Listen to podcasts
- Devour books, investment magazines, and blogs on the topic
- Do property investment courses online or through a local learning institution.
They make the most of professional help available to them
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 to leverage the abilities of exerts 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 review their investment loans regularly
The right investment loan for you today may no longer suit your needs in a year’s time. Successful property investors continually review their loans to make sure they still measure up.
In this way, clever investors can identify new opportunities along the way. 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 investments.
They have vision
Experienced property investors look past the current market movements to 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.