Many first time investors into the property market actually sell up after only a matter of a few years, in fact some statistics show that approximately 50% sell within the first 5 years!
Property investment is a long term plan, requiring patience and a good strategy.
To understand why some sell so early I wanted to have a look at the 3 main styles of investors, to see if their actions are leading to an early sale.
The Passive Investor, the Active Investor, and the Analytical Investor.
The Passive Investor spends the least amount of time looking for a property. They typically are an emotionally driven investor, and are not concerned with the due diligence needed to find a truly investment worthy property.
The Active investor spends a good amount of time looking into his property options. Choosing to seek professional help and guidance, especially in regards to his portfolio structure and how to maximise his capabilities.
The Analytical Investor will spend months, sometimes years, researching their property choices. They dig deep into facts and figures and to be honest, often get lost in them! They are looking for the investment property to end all investment properties, but does it really exist? And are they wasting valuable time in the process?
Do any of these sound familiar to you?
Can you see any benefits or pitfalls in the 3 approaches?
Any approach to property investment is better than none, undoubtedly. But I would suggest a combination of the last 2 would lead to better results.
Do not be afraid to seek professional advice, particularly independent advice backed with long term results. Gather an ‘A’ team of professional help and have plenty of patience.
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