Every property investor is different with different goals, risk profiles, budgets, and overall strategies, however, it is clear there are 3 predominant categories that property investors fall into, some bad and some good.
Category #1: Investing Due To A Fear Of Missing Out (BAD).
Investors in this category rush the property investment process due to having a fear of missing out (FOMO). No proper due diligence or research into the market or property is conducted before investing. These investors never seem to have a clear understanding of their individual circumstances, from budgets to long term goals and strategy.
Category #2: Waiting To Invest At 'The Right Time' (BAD).
Investors who fall into this category simply wait too long to invest and unfortunately end up not taking any action. This group tends to have a very high-risk profile and are crippled with fear. Individuals in this group will likely have their money sitting in a bank account earning very little interest for a long time.
Category #3: Investing After Conducting Detailed Due Diligence & Leaning On Professionals (GOOD).
Investors in this category are well educated and conduct detailed due diligence into the micro and macro fundamentals of an investment property before taking action. They also fully understand their circumstances, goals, and budgets. Investors in this pool often lean on key professionals to assist throughout the whole process. Surprisingly, this category of investors only accounts for around 25% of all investors.
Fortune indeed favours the brave but the brave who have done their homework to make an informed decision.
The bottom line is that to be a successful investor you must perform comprehensive due diligence prior taking action. Education truly is key.
This due diligence process should be coupled with the establishment of a relationship with key professionals along the way such as:
Mortgage Brokers
Property Investment Consultants
Accountants
Financial Planners
Solicitors
Property Managers
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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.