What Kind Of Property Investor Are You?
How knowing how you invest can help you make better decisions
When it comes to investing in property, you have to make sure the way you’re investing aligns with your risk profile and your financial goals. To make it easier for you, we’ve compiled the three main investor ‘types’ so you can determine which one you fall into!
So what are the types of property investors?
There are a number of different types of investor, and whilst you may not fall into just one category, these are the main types of investors we encounter most often.
The passive investor
This investor doesn’t spend much time looking for property. They’re not overly interested in understanding the intricacies of property investment and are more interested in buying property for the sake of buying property. These investors may not be well versed in all the ins and outs that go along with purchasing investment properties and rather than consulting with advisors they are more likely to simply purchase the first suitable property they come across.
The active investor
This is someone who, unlike the passive investor, is willing to put in the work to find a property that suits them. They are more interested in understanding the principles of property ownership and taxation and they will tend to seek out the help of the professionals. Active investors are willing to put in the work to find the investment property they’re after rather than settling for one of the first houses they see.
The analytical investor
Then there’s the analytical investor who tends to look for months in advance to find the “perfect” property. They tend to examine every facet of the property and the property market before making the plunge and they may shop around for advice from a number of professionals before making a purchase. They like to conduct as much research as they can in order to try to secure what they think the perfect property is for them.
But are any types of investor better than the other?
When it comes to investing in property, there’s no guaranteed type of investor that’s going to yield the best results. Whilst of course it’s important to do your research and seek professional advice, the flip side of that is that if investors take too long researching the market you may miss out on good opportunities in the hope of something better.
When it comes to how to buy the best investment property for you, you want to focus on the overall quality of the property rather than just the market conditions at the time.
Seek help from AllianceCorp
No matter what kind of property investor you are, you can always benefit from a little bit of help from the experts. Contact our team at AllianceCorp today to get some of the best investment advice in Melbourne.
Our team can help tailor an investment property strategy for you to help you build long-term wealth – no matter what kind of property investor you are!