After working with hundreds of investors over 40 years, we’ve learned a great deal about the attributes of a successful property investor.
Knowing where you feel confident and where you feel less confident can guide you to reaching out for expert support where you need it and help you make more informed decisions that can accelerate progress towards your goals.
Top 10 Attributes of Successful Investors
1. They have an investor mindset
Rarely do successful investors fly solo. They have a strong team of experts who seek advice and support – specialist knowledge is vital to making better investment decisions.
2. They have a team of advisors
Rarely do successful investors fly solo. They have a strong team of experts where they seek advice and support – specialist knowledge is vital to making better investment decisions.
3. They have a plan
Having a plan means you’ll get better results. There’s a myriad of things to consider including location, rental yield, tax, structure, timeframe, market conditions, serviceability, and lenders – just to name a few. A clear plan will help guide your decision-making.
4. They have their finances in order
Preparation is key – good financial structuring can allow multiple purchases over the long term. Successful investors understand strategy and how lenders view the different property types and locations – a smart broker is worth their weight in gold.
5. They understand investment cash flow
Successful investors know that cash flow is king. They know that investment property cash flow works differently with rent, interest, property management fees and tax all working on different cycles. They know how to use these cycles to their advantage.
6. They understand location
The wrong location can stifle progress in a property portfolio. Successful investors understand the macro and micro elements of the location. Choosing the wrong location can lead to property that doesn’t perform, the wrong tenants and a depressed return. Successful investors stick to ‘PIE’ – population, infrastructure and employment.
7. They know the risks and manage them
Successful investors understand risk and make better decisions with those risks in mind. They know that things don’t always go to plan, so they ensure there’s a backup plan and a buffer. They are prepared for uncertain outcomes. They do proper due diligence and put contingency plans in place.
8. They regularly review their situation relative to their goals
Investments of any kind need to be monitored and managed to ensure optimum performance. Successful investors regularly review their portfolio relative to their goals with their team of experts.
9. They are action-takers and fact-driven decision-makers
Successful investors are action-takers and decision-makers. They make decisions to progress their plan after they have all the facts in front of them – they know that ‘yes’ AND ‘no’ are both relevant decisions. They are fact, driven-decision makers.
10. They sleep well at night
Sleeping well at night comes from the knowledge that they’ve done everything they can to make a great decision. Successful investors do the research, make fact-based decisions, consult the professionals and get on with life knowing their investment is working for them while they sleep.
Take the next step
How did you fare in your self-check? All tens? Areas where you could build your knowledge? We are here to answer any questions you have about investing in property or building a strategy for your portfolio. From finding the right location or property type to planning your cash flows or making the right decisions now to benefit you in the long term, we can help you achieve your goals.
Click below to book a call with an expert property advisor.
Comments