5 important lessons from an experienced property investor
Whether you’re a beginner or experienced property investor, there is no better way to expand your knowledge of the industry than to learn from people who have already been where you want to go.
The 5 tips in this article are foundational life lessons of those who have crossed the property investing path before:
Head over heart
Like poker players, experienced property investors all know to leave their emotions at the door. This is not a home that they’re buying for their three children and wife, this is a vehicle through which they intend to make money with.
If you’re a beginner reading this, your tendency will be to go with your emotions because of the thrill, which is why you must internalise this lesson and take it with you to avoid that trap.
Listen to others
At the end of the day, the decision is yours to choose which property you want to invest in. However, although this is true, getting several third party opinions can go a long way for many reasons. Like the above tip, emotions can get in the way of rational decisions, which is why getting a logical third party opinion can help in giving you perspective.
Despite your experience or lack thereof, there is almost always one or two things your investor buddies know that you dont, which is why it’s essential to gain this birds eye perspective. If you are a beginner, this tip should go without saying.
Building inspection
One mistake that is unfortunately prevalent is not having a building inspection. Experienced investors realise that this mandatory in order to avoid any unexpected expenses down the road. Aside from this, you do not want your tenants giving you a hard time for any hidden faults or insects crawling around once they move in.
It’s a business
There is a misconception that investing is a “side-gig” towards your real job and that it should be treated as such; this is a mindset that will lead you to failure. Whether this is your only source or just a side source of income, you need to treat investing like you would treat your own business.
This means that the activities conducted by you should involve standard business procedures like setting up financing, protection, relationships with other smart investors and so on. Like everything in life, you get out what you put in, and unfortunately you’re at risk of losing a lot of capital if you treat this with little regard.
Long term > short term
Many people are overly dramatic about the short term fluctuations in investing, and how to seize them. The problem is that these are quite unreliable and very volatile. On the other hand, long term charts provide a very good scope of statistics that are much more proven to be profitable if followed.
In terms of property investing, going in for the long haul is much smarter than short term gains. Of course, there are situations and people who profit of the latter, though for the general public it’s much like gambling.
So remember, if you’re just beginning in the world of investing, you could save years of heartache and pain by learning from others mistakes instead of making them yourself. To get started on your investment journey, contact us today!
