Some key life lessons can be learned from going through the property investment process, whether you go through the process once, or are a seasoned property investor.
After years of personal and client investment experience, here is a list of the 3 takeaways from the property investment process.
1. Have the correct structures and strategies in place.
Most investors start with choosing the property first, when in fact the property selection should come last.
Firstly, all investors should start with a strategy. It will start by aligning your goals with your budget. Know what you are aiming for and what you can afford using conservative assumptions.
Having a plan, a structure, and a strategy is the best first place. Far too many investors get emotionally motivated to purchase simply because it 'looks or sounds' great.
Remember those who prepare well, do well. Those who fail to prepare, fail.
2. Being well-educated in the process is critical.
The first comment I hear from property investors who entered the investment journey alone and with little education about the process is how difficult it was or how badly it turned out.
Most investors get it wrong. It is not an easy process when you do it by yourself without help from appropriately qualified professionals.
The due diligence involved before selecting a suitable suburb and property is substantial and critical, so it is very important to educate yourself on how best to do this.
How do I choose the right area, the right location, the right product, the right builder, who can I trust, and on it goes?
A great lesson is to learn from those who can best teach you how to avoid the mistakes made by the vast majority and maximise the benefits made by astute investors.
3. Get a great ROI.
What you will learn when you get the investment process right, is the best way to grow wealth, minimise taxes, and create a lifestyle you wish for.
When comparing Australian residential property to other asset classes, such as shares, it performs better than any other asset class when the purchase is selected correctly. It is safe to say that residential property underpins Australia’s wealth and the demand for further investment in it keeps coming.
To learn more about property as an asset class click here.
It all comes down to patience. Strong property investments will always prevail, you just need to be patient in order to reap the rewards.
So, what can one learn from property investment?
Have a plan, get the right education and if one gets it right, it should provide an extremely healthy return on investment.
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Warren Jacobs - Senior Property Investment Consultant at Meridian Australia
P: (02) 9939 3249
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.