Ten things to consider when you’re just starting out
01 Aug 19
Starting out on your investment journey can feel daunting and challenging.
It’s easy to funnel your efforts into market research and upping your property investor knowledge. But all that knowledge can send you going around in circles.
To really make progress you need clearly defined goals, underpinned by a strong sense of purpose and driven by action. With these three things you’re an unstoppable force.
But defining your purpose and setting out your goals isn’t easy. In this article we help you get your mindset straight by giving you our top ten things to consider when you’re just starting out.
On the go? Here’s 30 seconds of take outs:
- Your ‘why’ will develop and become clearer over time as you learn more about yourself on your property investment journey.
- The first step to achieving goals is to write them down. Giving words to your dreams provides you with the power to succeed.
- Find what works for you, optimise it and repeat. Don’t stop, keep going. Small actions lead to big things.
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A different perspective on your ‘why’
Many investors miss the mark when thinking about their ‘why’ the reason and purpose for investing. If you’re like me when I first started this journey your mind may strike a blank when you are put on the spot!
Back when I first started property investing, I didn’t have many ideas about what I wanted to achieve or where I would like to get to. The only thought I had was to do something smart with my money.
The thing is, as you progress along this path or take a leap of faith (or however you describe it to yourself) your vision will grow. What you think you can achieve becomes grander than you ever would have imagined.
Henry Ford said ‘If you think you can or if you think you can’t you are right’ and Albert Einstein said, ‘We are boxed in by the boundary conditions of or thinking’.
The reason why I do what I do at Capital Properties is because I live to see the vision of our investors grow beyond their current thinking.
This can take a while to nurture, but in the very least I think each one of us desires a better life for ourselves, our families and others. If you struggle with your ‘why’ the 10 things to consider when you’re first starting out below might help.
While they can be very abstract, one of the keys to achieving is to turn the abstract into specific actions around what you want and how you’re going to achieve it.
Everyone has ideas about what they’d like to achieve. The key to actually achieving them is to write them down. Mind dump your ideas on paper because something powerful that happens when you put dreams into words.
10 things to consider when you’re first starting out
- A good place to start is to think about your desires for a better life, for example; having more time, money and choices. Living what you feel is your true calling and what you’re passionate about. Then there can be an outward focus on helping others and or changing the world around you.
- The key with all goal setting is to be specific. Write down a weekly income you want by a certain date in the future that can tie back to retirement or pursuing another career.
- Grow a unified vision with your partner or spouse. It’s amazing if you sit down and do your goals individually then come together and see the differences!
- Make a commitment, nothing worthwhile takes shape without some sacrifices along the way.
- Commit to maintaining a good character in every area of your life. Stay positive even when things don’t go as planned. There is always a way. Bless people who wrong you, it seems counter intuitive but you will be blessed by this.
- Get an understanding your strengths, gifts, abilities, and passions so that you can find a strategy, system and process that fits with you and that you’ll be successful at. Then repeat over and over again.
- Get a clear understanding of your resources for example, how much time and money you can put into at the start and moving forward? #investortips Create a personal spending budget then work out how much you can put towards investing on a weekly basis. This could be in the form of a savings plan or towards your future. An idea might be to cancel some credit cards if not all, pay out any ‘bad debts’ such as personal loans and car loans.
- Plan for risk. Do a risk management plan. Hope for the best and plan for the worst. Your plan should include interest rate increases, a buffer or cash reserve, where possible reduce your LVR (Loan to value ratio) or in other words reduce the debt on your investments to increase your cash flow, invest into different corridors and geographic locations – don’t put all your eggs in the one basket!
- Build your knowledge, your understanding and your wisdom. Connect with someone experienced (aka a mentor) and other investors.
- Don’t stop there, keep going! A word to the wise: all the goal setting, property investor research and knowledge means nothing without action. Your personal goals tied to action with a sense of purpose creates an unstoppable force. You’ll be amazed where you get to by making it mandatory for things to be a part of your daily activities.
Like the old infomercial ‘It won’t happen overnight, but it will happen’ if you never give up!
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