In property investing, the planning trumps the plan

Benjamin Graham wisely said:

The best way to measure your investing success is not by whether you're beating the market but by whether you've put in place a financial plan and a behavioural discipline that are likely to get you where you want to go.

Winston Churchill's famous quote further emphasizes the importance of having a roadmap for your property investment journey:

If you fail to plan, you plan to fail!

But here’s an important slant on things:

The planning trumps the plan.

You see…when it comes to navigating the ever-changing real estate markets, the ability to adapt and evolve your investment strategies is just as important—if not more so—than the initial strategy itself.

Having helped deliver hundreds of Strategic Property Plans to clients of Metropole I know the benefits of creating lifetime wealth master plans.

Not only have we created hundreds of plans for our clients and more importantly we’ve also updated hundreds of plans.

It’s a pleasure to create the first Strategic Property Plan for a family - listing all of their wealth goals and what they wish to achieve, and building a substantial asset base as the facilitator of these goals.

But in my mind, the initial plan is not the important element of the process - it’s the planning process that’s crucial.

Of course, the initial plan will be the foundations, but our property plans are built to be fluid and in flux, reflecting life.

A rigid plan is not a real plan. In fact, I've often said plan for your plan not to go to plan.

We’re now approaching a decade of creating Strategic Property Plans for our clients at Metropole and I’ve seen huge changes during this time.

Changes that were unthinkable when the plans were first created.

I have also seen families achieve their goals and apply the correct behaviours to ensure they are not derailed.

A property investor's journey is not linear; it’s a dynamic process that encompasses various stages of life and adapts to the changing economic landscapes.

It's this very adaptability that differentiates a successful property investment plan from a static one.

Planning is about preparing for the future, but not being shackled by predictions.

It’s about creating a roadmap while allowing for detours and new destinations.

The Agility Advantage of having a plan

Here are 3 benefits our client found when they had a Strategic Property Plan and regularly reviewed it with their Wealth Strategist

1. Unpredictable Market Fluctuations: The property market constantly throws curveballs. Interest rates shift, regulations change, and economic trends fluctuate.
   A rigid plan becomes brittle in such an environment, while a flexible planning process allows you to adapt and seize new opportunities.
2. Evolving Goals and Priorities:
   Life has a way of throwing surprises our way.
   A growing family might require a larger home, while career changes could necessitate relocation.
   A static plan wouldn't account for these shifts, but a dynamic planning process encourages regular reviews and adjustments to keep your investment journey aligned with your evolving goals.
3. Capitalising on Emerging Trends:
   The savvy property investor doesn't simply react to change; they anticipate it.
   A strong planning process includes continuous research and analysis, allowing you to identify and capitalize on emerging trends like green technology integration or the rise of co-living spaces before they become mainstream.

The Power of Professional Guidance

Our complex world is full of surprises, set to try and test our ability to stay committed to our carefully thought-out wealth and property plans.

I know from experience that it’s very hard to stick to an agreed plan without having an independent adviser in your corner – somebody to hold you to account and be a sounding board for major decisions.

It’s also important to have somebody who can identify any financial misbehaviour and ensure there are no gaps in your plan.

The real value is created by frequently coming back to your plan (at least annually) and making the changes that become necessary as life plays out.

The plan itself reflects just one period of time - the planning process trumps the actual plan.

At Metropole our regular client reviews ensure you focus on implementing your plan and the plan just comes along for the ride.

When you have a Strategic Property Plan you’re more likely to achieve the financial freedom you desire because we’ll help you:

• Define your financial goals;
• See whether your goals are realistic, especially for your timeline;
• Measure your progress towards your goals – whether your property portfolio is working for you, or if you’re working for it;
• Find ways to maximise your wealth creation through property;
• Identify risks you hadn’t thought of.

And the real benefit is you’ll be able to grow your wealth through your property portfolio faster and more safely than the average investor.

Your Strategic Property Plan should contain the following components:

1. An asset accumulation strategy
2. A manufacturing capital growth strategy
3. A rental growth strategy
4. An asset protection and tax minimisation strategy
5. A finance strategy including long-term debt reduction and…
6. A living off your property portfolio strategy

Click here now and learn more about this service and discuss your options with us.

Note: The most successful property investors are those who plan to adapt because the only constant in both life and the market is change.

And in a world where change is the only constant, the planning indeed trumps the plan.

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.