Investing in property is something that many people strive to do, and yet so many people get stumped financially, or fall into the mindset of feeling as though they can’t invest, or can’t increase the size of their portfolio.
We’ve taken a look at four major things that cause a lot of people to fall short, and gone over them here so that you can learn from these stumbling blocks!
- Developing an Investor’s Mindset
When you’re getting started with investing you’re essentially learning a whole new language and a whole new way of approaching something. Your financial decisions are suddenly going to revolve around something that’s probably a bigger commitment than you’ve ever had to make before. Because of this, it can be daunting for some people to see that they’re in a lot of debt all of a sudden, and sometimes people get overwhelmed. It’s important to know what’s coming up ahead of you and know how you’re going to deal with any possible financial hiccoughs or unexpected events.
Part of developing your investor mindset is developing a plan first – that way when you move along the path in property investment you know where you’re headed, and so there’s less chance of getting spooked or concerned.
How do you develop your plan? By sitting down with an expert and working out what you want to achieve financially and figuring out how you’re going to do it. This means working out what properties you need to buy, when you need to buy them, how you’re going to finance them, where to buy them and who you’re going to take the journey with! Having an experienced guide, buyer’s advocate or mentor will go a huge way towards helping you to develop your investors mindset.
2) Knowledge + Focus = Results
If you want to invest in property but know nothing about investing in property then you either need to start reading up about it (like, yesterday!) or you need to enlist the help of a property investment expert or mentor.
As part of your plan detailed in the previous step, you also need to figure out how risk averse you are and what you are comfortable with as an investor. For example, some people will advocate a strategy where you put zero of your own money down, and others will suggest a strategy where it’s high risk but the potential for high gains. Whatever you want to do, just make sure you know what you’re comfortable with and stick with that.
3) If you’ve got no money, then figure out why and change it!
You might be a low income earner who struggles to make ends meet, or you might earn a good salary but struggle to save properly. Whatever your situation you need to work at it if you know that you want to buy property. There is always a way to get ahead, and whether you need to create a strict budget or if you need to speak to a financial advisor, you can save enough for a deposit with enough time and determination. Speaking of determination, that leads us to our final point:
4) Be prepared to put in the hard yards!
Investing in property isn’t something that just happens overnight – despite the plethora of articles and information to suggest that it’s easy – and it requires a lot of planning, hard work and saving. A successful investor has a plan, the right mindset, tenacity and stick-ability, and will work hard at their goals until they get there.
You can start today by setting up a high interest savings account or by getting in touch with a buyer’s advocate who can help you to figure out your plan.