THE PSYCHOLOGY OF SUCCESSFUL PROPERTY INVESTORS
There are many reasons why successful property investors adopt an investor mindset. Magna Partners explores the attitudes and beliefs – the success principles that property investors live by. Whether you’re considering transitioning from homebuyer to property investor or already dabbling in property investments, the difference from success to failure is often down to a positive mindset.
Warren Buffet said, “To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.”
Invest your time to invest in the property market
Working as a property investor is a business; it’s not a hobby. Allow yourself time to thoroughly research all potential investment opportunities that meet your profit requirements. Successful property investors always ensure due diligence before any financial commitment to a property project, regardless of how big or small your desired property portfolio. According to realwealth.com although property investing can be very lucrative, success demands patience and discipline – so make sure you have realistic expectations. At Magna Partners, we make that easy for you to guide you through the property investment maze to streamline the process. The golden mean that successful property investors seek is to purchase properties in the right area with high demand and good rental yields.
Set clearly defined objectives and goals
Long-term vision is vital and as realwealth.com point out, you need to set SMART financial goals – specific, measurable, achievable, relevant and time-bound: so clear goals for income and net worth based on your future needs. You need to know where you are going and set short, medium and long-term goals. Based on these objectives, you’ll need to define a particular strategy and an action plan to achieve these goals. It’s only by starting with a well-defined strategy that you can achieve success in property investment. There’s a reason why thousands of people profit from investing in the UK property market. As a property investor, you cannot control everything, so be aware of unexpected difficulties you will encounter – don’t give up. Focus your energy on the parameters you can control, such as the property’s condition or the tenants’ quality.
Understand your market – risk vs opportunities
Ken McElroy, author of “The ABCs of Real Estate Investing,” says it’s all about patterns. If you look at enough properties, study enough areas, talk to enough people, he said, you will start to see these patterns, then things will start to happen. Successful property investors always evaluate risk but are not frightened away by it says McElroy. So always have a clear idea of what type of tenant you are looking for because you already know what property to purchase – and the numbers add up. Consider the areas and types of property investment you’re interested in: what are the levels of risk? Understanding the property market is an instant advantage. If you can align your property offering with the market’s needs, you can capitalise on trends and maximise your return on investment. All you need to do is find the right property and add value to it, ensuring it lives up to the expectations and needs of your tenant(s).
Location, location, location
City centres or areas further afield? New build or off-plan property investments? Are there any future developments in the pipeline, such as new parks, schools, shops, leisure centres or growing infrastructure? According to yourinvestmentpropertymag.com property investors should always buy in an area that has high rental demand. Approach your research into the property market objectively to make educated and informed choices. Use existing data and surveys to inform your decision-making. Is the area up and coming? Are the property prices rising or stagnant? Is the demographic a student population, young families, work professionals or retirees? Consider the rental statistics of different districts within a radius of your chosen place. Ask yourself what types of property have good rentability – what are the transport connections, and where are the schools or amenities?
Educate, assimilate and constantly learn
You can become a better investor by understanding how emotions and psychology affect your judgement and decision making according to whatinvestment.co.uk. Always be ready to receive criticism, spot mistakes – and own up. Inevitably, things can go wrong in the property investment business, but how you deal with failures is vital to your success – learn from your mistakes. Be in constant learning mode to stay ahead of the curve: various regulations, styles or trends are here today and obsolete tomorrow. At Magna Partners, keeping up with the latest developments in the UK property market is invaluable and can futureproof a higher level of property investment success.
