The 3 stages of failure in property investing… and how to fix them

If the key to success is about knowing when to hold ‘em and when to fold ‘em, how do you apply this to your property investment strategy?

Sure perseverance, hard work, determination are are all admirable qualities.

But when it comes to success in life – be it in your personal relationships, career, or even property investing — there comes a time when you must decide whether you should stick with something for the long haul, or accept defeat and move onto greener pastures.

Putting all of your energy into something that is doomed to fail and thereby “flogging a dead horse” is probably the least efficient and effective use of your time and money around.

If the key to success is about knowing when to hold ‘em and when to fold ‘em, how do you apply this to your property investment strategy?

Well, there are three areas within which you may experience challenges — tactics, strategy and vision — and within each, there is an opportunity to reassess and redirect so you achieve your goals.

1. Fine-tune your tactics

This is the how-to stage, where details and systems are incredibly important.

For property investors, this means having your paperwork up-to-date and pre-approval sorted, knowing your figures down to the last dollar, and always reading the fine print.

How much can you afford to borrow, and what kind of capital growth have your existing properties achieved?

This is where your calculator and analysis will become your best friend.

When you have a booming portfolio and a full-time job to juggle, this probably means employing one or more professionals to assist you with your tactics – think buyer’s agents or advocates, mortgage brokers and financial planners, along with a good accountant and a stellar conveyancing firm.

These are the people who’ll help ensure you’ve dotted your i’s and crossed your t’s, so you don’t get caught out in a silly mistake that could cost you thousands.

Remember, your tactics may change as your strategy, the property market and even the legislative landscape evolves, so you need to look back frequently and determine if tweaks need to be made to achieve the best possible results.

2. Pin-point your strategy

What is your current property strategy?

Are you focused on capital growth (my preferred strategy), or rental returns?

Does negative gearing form a large part of your plan?

What about retirement and super?

Do you even have a strategy, or are you just winging it?

I see this more of this than I’d like to admit, and it’s the riskiest strategy of all!

There is no one “right” way to invest in property, as every investor and their circumstances is unique.

What’s most important is that you research thoroughly, and avoid sinking too much cash into your strategy until you’re sure it’s right for you.

If it’s not working out, don’t throw good money after bad in the hope you’ll claw back some capital.

Move on and try something new, even if it’s not the path you originally thought you’d go down.

Successful property investors make business decisions, not emotional ones.

3. Develop a grand vision

This is your “why” – why are you investing in property? What do you hope to achieve?

It could be a comfortable retirement, or to help your own kids with a leg up in life.

Whatever it is, never lose sight of the reason you’re doing all this in the first place.

And most importantly, make sure you’re living your dream, not someone else’s.

If private school isn’t on your radar, why are you saving for it?

If holidays mean the world to you, make them a priority instead.

It’s your life, and your vision — and your property portfolio can help you achieve it.

Now is the time to take advantage of the opportunities the current property markets are offering.

Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.

You can trust the team at Metropole to provide you with direction, guidance, and results.

Whether you’re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that's exactly what you get from the multi award-winning team at Metropole.

We help our clients grow, protect and pass on their wealth through a range of services including:

1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $4Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney, and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property.  Click here to learn how we can help you.
3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
4. Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.

About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.