The 3 stages in the life of a property investor

No one wakes up one day and is instantly an expert in anything.

It usually takes years of practice to perfect any endeavour or skill.

This is one of the reasons why I struggle with the concept that property investing is seemingly “easy”.

Learn From MistakesSure, buying a property might seem relatively simple on a transactional basis, but understanding which properties will grow at wealth producing rates of return is not.

Remember…most properties currently on the market are not what I’d call “investment grade.”

I’m not ashamed to admit it took me years to become an expert property investment, with plenty of learning fees paid along the way.

So, to help you better understand the typical journey from novice to expert, here are the three stages in the life of a property investor.

1. The beginner

Most investors start out either thinking they know not much at all, or thinking they know too much!

The thing is it’s better to be the first incarnation because you have the opportunity to soak up new information like a property sponge.

First-timers should devote plenty of time on education in not just property but also they need to understand the world of finance, tax and the economy.

The smartest novices also start developing a team of experts whose knowledge and experience that can tap into, which will ultimately mean superior asset and location selection as well less chance of failure.

2. The builder

The builder phase is when an investor might have one or two properties in their portfolio.

They are learning more along every step of the way, but hopefully not from too many major mistakes.

Moving through this stage that will ultimately make the difference between creating wealth in the future or not.Choose Select Property Investor

Unfortunately most investors never get past their first property.

Usually because they bought in the wrong location or perhaps even the wrong type of dwelling, such as an off-the-plan apartment, which has resulted in next to no capital growth.

They will be unable to keep growing their portfolio because they won’t have enough equity to draw upon and their rents which they need to service their mortgages, won’t grow to

Instead, what’s likely to happen is they wind up being one of the 1.5 million investors who never get past their first property.

3. The expert

Unfortunately few investors reach this stage.

To me an expert is someone who not only has a vast knowledge of property but someone who has used their knowledge to build their own significant property portfolio.

The thing is, there are plenty of so-called experts out there who suggest a specific strategy as being the Holy Grail of property investment, but they don’t follow that strategy themselves.

Why don’t they put their money where their mouth is? 28638009_l

Quite simply, it’s because it’s not an investment strategy at all.

It’s just a vehicle to make money from unsuspecting and uneducated beginners.

However, a real expert follows the exact same strategy as they recommend to their clients.

At the end of the day, there might be three stages in the life of a property investor, but most people next get past the first two.

Those who do reach expert status are the ones who have been investing for years across a number of different market cycles.

The pretenders are the ones whose knowledge and experience are limited – if you only know to scratch below the surface to see for yourself.

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on

If you’re wondering what will happen to property in 2020–2021 you are not alone.

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

In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

  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!  This will give you direction, results and more certainty. Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion 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.

 

 

 

icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Kate Forbes

About

Kate Forbes is a National Director Property Strategy at Metropole. She has 15 years of investment experience in financial markets in two continents, is qualified in multiple disciplines and is also a chartered financial analyst (CFA).
Visit Metropole Melbourne


'The 3 stages in the life of a property investor' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts