The most common reason people choose not to invest is….
Because they believe it is “too risky”.
But there is a secret weapon that all successful property investors use, in order to reduce risk and maintain strong financial gains.
When I meet upcoming investors for the first time, they almost always ask the question, “What if I lose everything? What if my tenant doesn’t pay the rent?”
These are scary prospects, and while we can never truly eliminate risk in life, we can absolutely mitigate and minimise it.
So how do we reduce risk? We have to have a plan!
If you don’t plan, then you plan to fail.
While many first-time investors wing it and wind up making costly mistakes, seasoned and successful investors always have a plan that they adapt and evolve as their journey unfolds.
We don’t get any sort of road map from the banks, and an accountant is not a property expert, so often times we sail through buying, holding and selling property completely blind.
This is a rookie error and one that usually doesn’t lead to optimising your full potential to become a successful property investor.
Success starts with a plan.
To reduce risk, you need to adopt a business mindset. To acquire property that generates long-term wealth, or a desired level of financial freedom, requires all the same ingredients as a business.
That means becoming educated, having a solid business plan or road map and having the right team in place to help grow and move the business forward.
The ultimate goal here is to structure your finances in a way so that your property investment enhances, not detracts from your lifestyle so you’re not having to live on beans and rice because your tenant didn’t pay.
In the beginning this is about getting clear on where you are today based on your current stage of life, and then looking at where you want to be. What is the end goal?
Then, with that end goal in mind, a plan needs to be designed to get you from point A where you are now, to point B, which is where you want to be. Without the ‘how’ there is no plan.
The Defining Factor
In my experience, having that road map is usually the defining factor of whether people win or lose when it comes to property investment.
Because just like a business, your property plan has to include what structures you’re going to use, what the tax implications are, what your requirements will be as a landlord, what you need to budget for and so on.
Let alone any relationship, family or even legal dynamics that may need to be included in the mix.
Good property investors are nimble and adapt fast. They stay informed and enrol a team of experts to help them excel in times where others can’t. But most importantly, they start with a plan that is deliberate and based around the goals they wish to achieve.
You’re invited to our next Property Investor Night
Here you’ll be equipped with the tools, resources and support to thrive.
Most importantly, you won’t make the fatal mistakes that others make when they fail to have a strong plan in place that can properly maximise their potential.
Use the form below to book your spot!
Sue Irons
Director – Positive Real Estate NZ
Reserve your free seat!