We all know people within our circle of friends who have done exceptionally well in property and it’s mainly due to them finding a simple formula that works and duplicating it over and over again.
In the past, this was most likely buying into an established area and waiting for capital growth over many decades. Typically, this is all a baby boomer had to do, to build up significant equity and a passive income.
These days, if you’re going to be a successful investor, you have to have a far more defined strategy and the right mindset to go along with it. I call it having an investor mindset.
With the rise of technology and the fact that anyone across the world can access new listings the moment they are released, means it’s far harder to identify potential investment opportunities before everyone else. In days gone by, you could stroll into a real estate agent’s office and you would be shown the latest offerings. Now, the market is so much more competitive.
However, the good news is, if you’re trying to create the right investor mindset, it’s far easier than ever, with access to the multitude of investment education, through the likes of books, property magazines and podcasts. If you’re prepared to learn what it takes to invest in the current market, then you can achieve success.
But it’s going to take some work and you have to start with having very clear and defined goals. These days, there’s simply no room for error and you can’t just go out and buy a property down the street and hope the growth will come. That’s a strategy for years gone by.
A true investor mindset is about having a goal in mind, then building a strategy that will allow you to get there over a number of years. Then it’s about going out and executing that strategy.
In recent times, I’ve met plenty of would-be investors who simply sit back and wait and continue to hope the right property will come along. All that’s happened has been they’ve missed out on getting into their chosen markets and are now staring at the likelihood of having to pay 30% more for the same property.
If you have a goal in mind but don’t know how to develop a strategy or how to execute it, the good news is, you don’t have to do it alone. The best investors simply put a team together to do the work for them. That means finding a property focused accountant, getting a solicitor and investment savvy mortgage broker and using a buyers agent to help strategize and locate properties.
These days, anyone can develop an investor mindset. But first, you’ll have to understand your limitations and identify what’s holding you back. Only then can you start taking action to remove those obstacles and begin moving towards your investment goals.