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The exciting investing strategy that’s so boring, it works

When you first thought about buying property as an investment vehicle, did the words ‘quietly boring’ ever pop into your mind?

I’m guessing they didn’ property

Real estate is often seen as an exciting affair and whatever names you have to describe it, “boring” isn’t like to be one of them.

But investing isn’t just for corporate fatcats and rich risk-takers.

Most Australian property investors are regular people with regular jobs (you might call them ‘mum and dad investors’) who you’d never pick out of a crowd because their investment life is just that – quietly boring.

Yet “boring” is the most exciting thing about property because it often means your strategy is snowballing towards a thrilling victory.

Gung-ho investors filling up their portfolio with exciting, fast-paced properties that promise a quick profit and an instant uplift in lifestyle, are usually a disaster waiting to happen.

Better to watch from the sidelines than be involved in that!

Boring doesn’t mean lacklustre – means keep it simple

Simplify your strategy into realistic goals for your situation.

When you make a realistic plan with goals you can achieve, you’ll be motivated by each success

If your first goal is to buy a $1.5million penthouse because that seems impressive and will surely be in high demand, you might find five years slipping by before you’re financially ready.

By then, the plan has fallen by the wayside, along with any growth you might have accumulated in a more affordable investment.

Start small, stay simple, and stick to the plan.

Remember to keep on top of your other investment vehicles like superannuation, and if it fits with your plans, you can explore diversification into shares to complement your real estate portfolio.

Try to ride out fluctuations rather than getting into a twist

Our markets continuously cycle through highs and lows.

You could drive yourself crazy trying to predict ‘the next big thing’, or whip yourself into a frenzy worrying about whether you should sell as soon as a local market dips.

We have enough historical evidence – and enough investors who have gone through it all before – to see what the market is likely to do, even though its ebbs and flows.

Seek some experienced advice, but don’t be driven to distraction by market movements.

Being a hare rather than a turtle can quickly turn on you

Properties that promise astronomical rental yields don’t often stay that data

The property might be in a typical boom-and-bust location like a mining town or be the result of a new development push that consequently suffers from oversupply and dwindling demand.

Instead, find a location with multiple growth drivers underpinning a long-term return.

Jobs growth and employment, housing demand exceeding supply, infrastructure, and a rental return that fits into your financial strategy will set the scene for a property that achieves long-term results rather than a flash-in-the-pan property that ultimately burdens your portfolio.

If your game is long-term capital gains, then being a turtle will get you there with far less risk.

Be open to opportunity, but don’t be an eager beaver

If you attend a seminar eagerly peddling underground lairs as the next big thing in property, walk away.

If a property hawker tells you that a nightclub in town is up for a ‘too good to be true’ sale, hang up.

Opportunity is everywhere.

Properties come in thousands of shapes, sizes, and locations.

They can be good, bad, and ugly.

But some should never find their way into your life, so control your enthusiasm to make sensible decisions.

A three-bedroom family home near a primary school and shopping strip is mighty boring – but in terms of risk mitigation and long-term projections, it could deliver exhilarating returns.

Slow and steady wins the race

New property investors would be wise to remember that property is the turtle approach to wealth

It’s not flashy and sparkly.

It’s full of numbers and research and waiting.

A straightforward portfolio and simple strategy are accomplishments to be proud of.

Relish your growing portfolio of sensible units and suburban family homes, because they’re on a journey that will one day reap huge benefits.

It might not make great party conversation, but it will deliver financial results that could thrill you for a lifetime.

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

Metropole Team

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 is Director of Metropole Properties Brisbane and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their build their wealth through property. Visit: Metropole Brisbane
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