Property investment is a business, it’s something people make a career out of. And they’re successful because they worked on a strategy. If your own isn’t generating some sort of flow, then it’s probably because you’ve made one or more of the below mistakes.
You haven’t educated yourself
Property investment strategies aren’t basic. They can be explained in simple terms but implementing them is anything but.Understand this: you can’t live off the income of one property alone. It won’t generate the income you desire. But a diverse portfolio of three or more will get you closer. Look at the different strategies out there and ask yourself a few questions, such as:
- What is your risk tolerance?
- Are you buying commercial, residential, or want a portfolio of mixed property types?
- Is your aim for long-term growth or short-term return?
You’re buying with your emotions
Remember, you’re buying properties for tenants, not your future family. Emotional investment leads to burnout and feeling jilted because you didn’t get that property you loved so much.
Find a mentor and start networking with the community. People in the industry are only too happy to share advice about a property investment strategy that’s worked for them. Ask them how they detached themselves from the homes or office blocks they were inspecting.
Another solution is to put yourself in a business person’s mindset. You’re running an enterprise, building your portfolio. If you act the part, everything else comes naturally.
There’s no team backing you
This is a big mistake new investors make. Creating an effective property investment strategy is NOT a DIY-type of project.
Successful investors have a team of professionals behind them not only to keep them grounded but also to keep them from losing all their hard work on a bad investment. You’ll need a savvy accountant to incorporate your strategy into your annual returns, a financial advisor to monitor your investments, a depreciation specialist to create a tax schedule and a property manager to handle general tasks around your portfolio. Asking for help isn’t a punch to your pride, it’s good sense.