5 Ways to Power Up Your Property Investment Strategy
1. View property investment as a business, not a hobby
Shifting your focus from property investment as a hobby, to property investment as a business venture is a good way to focus and get serious about your goals and decisions.
Think like a businessperson and leave emotion out of the equation. Base your decisions on research and evidence - what do the numbers tell you? When choosing a property, think about the ongoing maintenance costs, the types of tenants you want to attract and what the local rental market is like.
Be prepared to walk away if the numbers don't add up, or if the property doesn't match your criteria. If a property in your portfolio is not stacking up, don't be afraid to sell and replace it with one that will perform for you.
2. Have a clear property investment plan, and know what success means to you
Ask yourself the following questions to figure out a clear property investment plan:
- What is your current situation?
- What goal do you want to achieve?
- What do you need to do to go from where you currently are, to where you want to be?
- How will you measure this?
- What do you need to get there?
3. Create an investment strategy - and stick to it
Having a thorough investment strategy becomes more important as you add more properties to your portfolio. This will depend on your individual circumstances. If you're retiring, you'll be looking for strong cash flow to live on. If you're young, you'll be looking for capital gain - something that'll be worth double in 10 years.
Whichever approach you take, make sure you stick to it! Take the view of growing slowly, while maintaining enough flexibility to close quickly if the right opportunity strikes. Work to your strengths by sticking with what has been successful for you.
4. Regularly review your investments and portfolio
You can't manage what you don't measure, and this is certainly true of property investing. At regular intervals during the year, sit down and go through your portfolio. What's working and what's not working? Are your rents and mortgage in line with the current market? Don't forget insurance rates - are you paying a competitive premium, and do you have the right level or type of insurance?
5. Make it happen!
The most important thing to do is to take action. Look through your diary and block out some time each week to focus on your property investing activities and goals.
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