Characteristics of a profitable property investor

There’s money to be made in real estate, but it’s not as simple as just picking and purchasing any old property, then sitting back and waiting for its value to skyrocket overnight.

Although you may have purchased real estate before – whether that’s your own home, or an investment property (or two) – building an investment portfolio is a distinctly different experience. It’s challenging to invest successfully time after time after time! And any mistakes made along the way will delay your ability to grow your portfolio quickly.

There’s an art and a science to successfully investing in property, and there are certain characteristics that can be attributed to almost every profitable property investor. Below are some common habits of successful investors that you can aim to emulate. 

Create a strategy 

Planning is crucial when it comes to property investment; in fact it’s the only way to achieve your short, medium and long term objectives. After all, how can you possibly hope to meet your goals if you don’t have any? That’s why an overarching strategy is essential. It highlights your goals and steps out what you need to do to achieve them. It allows you to visualise your ideas and see the big picture, rather than focusing on a handful of vague short term objectives…that could quickly become setbacks.

Your plan can cover a wide range of objectives, from long term big picture goals like when and where you’d like to retire, to mid level concerns such as how many properties you need in your portfolio, right down to micro objectives like implementing a rent increase…and anything else that could have a direct or indirect impact on reaching your goals. 

The good news is you just need to come up with the ideas; a decent financial planner will be able to help you lay it all out logically. And the best news is that we have some amazing contacts and partners who can help you do exactly this!

Develop a niche 

Focus is important in many aspects of life, and investing time in mastering a particular subject or activity is generally time well spent, especially when it comes to achieving long term success. So investigating your options in real estate, and potentially focussing on one niche market and mastering it before moving onto another type of project or development is a tactic used by some successful investors. 

You might start out early on in your career rentvesting, develop a passion for sustainable and green building projects, dabble in low-cost housing or build to rent projects, make the time to flip and renovate property for profit, love the challenge of finding the perfect block to subdivide, get into buying up regional or rural land to develop…or focus on the luxury of high-end residential. It all depends on your passion, your knowledge, your time and your finances.

Understand your market 

Savvy and successful property investors are well-versed in the state of the property market and current economic conditions; and they have an in depth understanding of how one can impact on the other. Following trends, understanding consumer spending habits, being aware of inflation and unemployment rates, factoring in Reserve Bank of Australia objectives and the corresponding impact on interest rates, current and anticipated supply and demand from both buyers and renters, property values, and the state of the building industry; this is all information that allows investors to make informed decisions and successfully prepare for future developments. But don’t worry if you don’t have the time or the patience to deep dive into all of this, that’s where the team at One Haven can step in and help!

Keep up to date 

To maximise your investment potential you need to be able to acknowledge and adapt to market changes then modify your plans and actions appropriately. Anything that has the potential to have even a minor influence on your investment should be monitored. But unless you’re a full time, professional investor, keeping up to date and informed about all of the changes that could impact your portfolio is impossible…without some sort of expert assistance.

Know when to ask for help

And that’s why one of the most important traits shared by successful investors is understanding their limitations and knowing when (and who) to ask for help. Seeking out expert advice often costs nothing, and can make all the difference to your long and short term results.

The team at One Haven are available to assist you with making tricky decisions. Just contact us to discuss your options today!