Here’s what I know from decades of personal experience, and from helping others build their wealth.
On the go? Here’s 30 seconds of key take outs:
- Growing wealth by investing in property takes patience. Delaying gratification will be deeply satisfying in the longer term. I know!
- To help you stay the path you need to think about wealth as the funding you need to live the lifestyle you want. You’ll need to commit to a sure but steady plan to achieve lifestyle goals.
- There is a wealth of online information available to trawl through. I’ve shared a ‘long shortlist’ of quality online resources to help you sift through the guff and stick with quality sources.
Keep reading >>
When I first started in property investment I had absolutely no clue about anything!
Right up to the time I bought my third investment property my knowledge was very limited. Fortunately I had a terrific mentor – my Mum – a woman with solid experience in property investing.
Without experience under your belt, the clearest vision for your future falls flat if you don’t know what your next steps are. An experienced mentor is an early-in-career property investor’s most valuable asset.
8 tips for first time property investors to help stay a purposeful path
If you haven’t found a mentor, you’re likely to be trawling through online advice. At a time where we’re totally smashed with information overload; a time where we can search the answers to every question online and get a hundred different answers, even the chilliest of personalities can start to feel a little freaked out!
How do you get decent visibility through the smoke and mirrors of property investment gurus flooding the World Wide Web?
You can get face to face with us by registering for a two hour Strategy Session.
Until then, here are eight tips to help you on your way.
First time property investor tip #1: refresh your mind set
This trade is not about money. It is about lifestyle and living with purpose.
There is a viral myth that goes a little like this. Invest in property to grow your wealth so you can sit still and do absolutely nothing for the rest of your life! Sitting idle is not financial freedom.
I surf. I know that hanging down the beach surfing every day for a few weeks sounds fantastic when you’re working your butt off at work. The reality is surfing every day in the tropics in your boardies ends up with you dealing with the maddest boardie chafe on your legs. At the same time, your stomach feels bruised, your muscles get super tight and sore and then by day five you need to rest! …not all is as imagined.
My point is it’ll only take a few months to get bored when your sense of purpose is questionable, and challenge is missing.
Over the past few years there has been a lot of research on happiness. The findings mostly show that it is either communities that don’t put value on material desires; or people and communities that take on, or share in dealing with challenges, that rate themselves happiest.
People that are engaged in work they really feel purpose in, don’t feel like its work they’re doing – they’re doing life.
First time property investor tip #2: recognise money for what it is
Money is a big part of one’s life, but don’t let it be the driver. As a wise king once said:
“Whoever loves money never has enough; whoever loves wealth is never satisfied with their income.”
One of life’s greatest secrets of living well is achieving contentment. Desire for material wealth can turn contentment on its head.
Property investment isn’t for everyone. You need to be ready financially as well as mentally. You need to be open to life-long learning and be willing to stay with it.
First time property investor tip #3: have a plan and review it regularly
As an Australian Defence Force member, you’re used to setting milestone goals to reach for each year, to progress your career.
Property investment is no different. To be successful, you need clearly defined goals that are important to you. You then need to track your progress toward reaching your goals, and be prepared to reassess your priorities to keep your strategy working for you.
First time property investor tip #4: stay the course
True resilience is a rare character trait but one that is essential to succeed in property investing. If you’re an instant gratification seeker, you’ll need to learn to delay gratification. This trade is most definitely not a get-rich-quick scheme. It takes smarts. As an investor you’ll sometimes face doubt, you’ll make mistakes and sometimes money will feel too tight. Successful investors roll with the punches, turn challenges into learnings and continually fine tune their trade skills.
First time property investor tip #5: surround yourself with like-minded investors
You don’t need to be an expert in real estate to do well in property investing. Surround yourself with advisers that are smarter than you. As the old saying goes:
“If you’re the smartest person in your team find a new team.”
Some of the best opportunities for connecting with switched on investors are social gatherings. You could learn more from a social catch up than from attending multiple seminars.
Social events attended by like minded investors give you a chance to free flow your questions and potentially find a mentor.
Now, your challenge is to find out where savvy investors hang out!
First time property investor tip #6: keep your documents ship-shape
It’s no secret that as soon as you purchase an investment property there is tonnes of paperwork! Get obsessed with being organised and filing property investment documents away centrally, the day you receive them.
Keep a spreadsheet to help you keep a finger on the pulse with regards to your cash flow. Explore Capital Properties > Resources & Tools > Investor Tools & Apps for free templates and spreadsheets to help you track your progress.
First time property investor tip #7: keep your savings growing
When you first start out you’ll need some cash savings to get things kicked off. What a lot of people don’t realise is that you’ll need to keep your savings going.
A good property investment strategy includes purchasing properties that are easy on your budget so that your cash flow is sufficient to keep your savings growing.
Sometimes it can take a while to build up equity in a property. By continuing your savings plan, you’ll have a means to put down a deposit on your second or third property. Then, once you’ve been in the market for a while you can access some of the equity that you’ve grown in your properties.
First time property investor tip #8: get information flowing your way
The amount of information about investing in property is astronomical! I’ve collated a list of property investment information sources with integrity for you to learn from.
Naturally, Capital Properties is your first port of call when it comes to learning from experience and proven results!