| The path to property investment success |
 by Chris GrayWith the right strategies, property investment will provide you with long term rewards and the freedom to focus on a job you love or raising a family, all the while knowing you are backed by a bricks-and-mortar asset that is building your wealth.
Having great success in property investment is possible, but like any worthwhile pursuit, the process is long and studded with both threats. To be successful on your journey, it is necessary to make a mental shift that could take many years. Over time, and with the right strategies, property investment will start to provide you with long term rewards and the freedom to focus on a job you love, take time off to travel or raise a family, all the while knowing you are backed by a bricks-and-mortar asset that is constantly working at building your wealth. I started investing in property when I was 22 but it wasn't until I reached my thirties that I began to see how I could transform my life by investing in property. I have learned a lot of lessons on my property investment journey. I believe the following five lessons are the most important points for anyone looking to succeed in the property market to consider: 1. 'Don't fear the gear' This is one of my mantras. Most people are afraid of debt and leverage, as they perceive it as dangerous. However, debt can increase your return and shorten the time it takes to get the return. Debt does increase your risk during a downturn, so every investor needs to do know how much debt they are comfortable carrying. 2. Go against the grain Ninety-five per cent of the population retires poor. If your goal is to retire wealthy then you need to do the opposite of what everyone else is doing. Good investors buy when everyone else sells and sell when everyone else is buying. Yes, it can be difficult to maintain your confidence when everyone tells you you're doing the wrong thing at the wrong time, so you need to develop your mind to block negative comments which can come from friends, relatives and the media. 3. Stick to your strategy Every investor should have their own strategy that reflects their circumstances and adversity to risk. Figure out what works for you and, once you've found your strategy, stick with it. You do need to be aware of other opportunities and get other advice, but often these can be distractions. A good strategy shouldn't be overly complicated - it's often the simple things that work. 4. It's time in the market, not timing the market that counts The real secret to wealth is compounding your investments. You need to change your mindset from trying to be a millionaire overnight to aiming for consistency. This can be very frustrating when you first start out as your wealth won't increase much. But once you've got the critical mass of properties, your wealth will grow. 5. Don't retire on property rents Most people think you've got to pay property off as quickly as possible and then retire on rents. But often it's the capital growth that makes the real money. Change your mindset and be less emotional about it - look at the numbers and make your decisions based on that. |
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