Understanding investment goals
With the Melbourne rental market becoming increasingly tight in recent months, and median rents increasing substantially as a result, it’s no surprise that an increasing number of Victorians are taking an interest in property investment as a means of securing their long term financial security.
With this in mind, we thought this might be a good opportunity to share some tips on becoming a property investor in a way that increases your chances of long-term success.
For example, you’d be surprised how often people set out to become a property investor without a clear goal in mind. To our way of thinking this is a prime example of the old saying that goes, “If you fail to plan, you plan to fail”.
Always keep in mind that building wealth takes time. The difference between a long term plan and a short term goal is as stark as the difference between investing and speculation. That’s why it is so important to start out with a clear set of goals, both in financial terms and time-wise.
As we mentioned above, so many aspiring investors don’t have a clear vision of what they are aiming for. If you were to ask them, the chances are they’ll say they “want to build wealth” but have nothing more specific than that. With no clear goal, it’s fair to ask how they will know when they get there?
In comparison, if you were to ask a smart investor about their goal, their response might be something like, “I aim to have a nett investment income of $160,000 per year by 2032”. See the difference?
As any successful investor will tell you, by having a clear goal and timeline you can then focus on what is required to reach that goal, including how many properties you may need to have in your portfolio, what financial steps you will need to take to purchase them, and who you need to go to for advice on maximising your position along the way.
The important thing to keep in mind is that by setting the right goals and strategy from day one, you will have less need for potentially stressful and expensive changes of strategy or direction later on.
Don’t forget that if you have any questions about finding the right rental property in the north of Melbourne, or managing your property investments to maximise your long-term returns, you can give the team at Barry Plant Gladstone Park a call this week on 9330 1088.
Cheers,
Nick Pugliese - Sales Manager
and Bill Karp - Director
Barry Plant Real Estate
Gladstone Park