Harness Data To Help Guide Property Investor Profits

by | Apr 19, 2021

I’m sure you’ve heard – data is the new currency. It’s the next big thing for business and it will be a catalyst for driving the world forward over the next few years. Learning how to harness the power of data in property investing, will be a secret weapon all investors can use to create more wealth. 

So, what is data? It’s information, insights and predictions that property investors can use to help them make smart property purchases. 

This could be data around what’s happening in regions in terms of infrastructure and growth. Figures on what type of property is selling well in a particular location. Information on industry or employment opportunities in a city or regional town. 

All of this kind of data can give property investors an edge into what, where and when to purchase in order to create wealth.

However, when it comes to data and information, property investors face some challenges. Identifying what these can be will help protect you from making decisions based on fiction and distinguish what is fact. 

CHALLENGE #1: DATA ISN’T GOOD OR BAD – IT’S JUST INFORMATION

Letting go of the idea that data has to fall into a good or bad category is a big learning curve for those new to real estate investment.

Remember data is just information coming from different sources. Take it in, and use it as part of a whole knowledge bank you have stored in your mind that will help you gain a greater understanding of the market and investment process as a whole.

In short, don’t give it too much meaning. A report on rises or falls in the market is just one piece of the data puzzle, not the whole picture.

CHALLENGE #2: NOT ALL SOURCES ARE EQUAL

While we’ve been socialised to respect institutions like banks, insurance companies and even some forms of media, most of the sources of data and information aren’t objective.

In simple terms, everyone has an agenda to suit their own purposes and success strategy. While your agenda as a property investor is to eventually pay your loans down and create positive cash flow from your properties, the bank’s agenda is the opposite. Why would they benefit from you paying off your loan?

And even the most well-respected business or finance media has to attract readers, and nothing does that better than a scary headline.

Sources will put data into the market to support their own agendas, another good reason to resist attaching too much meaning to any one piece of information.

CHALLENGE #3: MOST DATA SOURCES HAVE LITTLE RISK

If a financial planner told their clients that property prices were going to plummet by 50 per cent and the smart thing to do was to sell all of their properties, and they were wrong, their clients could sue them. 

If the banks, lenders or media say the same thing, they have no tangible responsibility to how people react to that information. So, while the information may have been put in the public arena with the best intentions, if it’s wrong, there’s no fallout for the source. 

The challenge here is to once again take all data as small insights into what is a very big business with a lot of moving parts. Don’t be scared into an over-reaction, or worse yet a paralysis of any decision making, by one piece of data. 

Smart property investors seek information from property experts with years of experience and education who, incidentally, have the same agenda as them – to use property as a way to create wealth. 

MAKE DATA DRIVEN DECISIONS CORRECTLY

The key here is to make data driven decisions correctly. When you can read verified information accurately, it has the potential to help you tremendously. 

It can inform much if your investing strategy and lead you to the best properties to buy, in right locations and for the right place. It can guide you in making key decisions such as which property manager to go with, what rent to charge and even which banks to work with.  

To learn more about how you can better utilise data when investing in real estate, join us for our free property investing seminar

Limited spots are available so book here now

Recent Articles

Should I Buy An Investment Property Or Home First?

Owning property has always been part of the great Australian dream. A lot of people want a place to call their own, with stone benchtops, the latest appliances and a great entertaining deck out back. So, when interest rates hit a record low in the last couple of years and it suddenly started to cost the same to own as it does to rent, why wouldn’t you have just bit the bullet and bought your own home?

Guide To Investing In Positive Cash Flow Property

If you want to become a superstar property investor and be on the path to financial freedom, then you’re going to need this guide to investing in positive cash flow properties! Investors that follow a positive cash flow strategy understand that living off passive income is the key to an early retirement – and the only way to do that is to make our money work for us, not against us.

How You Can Be 3-7 Years Away From A Multi-Million Dollar Property Portfolio

Using real estate to become a successful property investor is underpinned by one very important philosophy – profits are better than wages. The goal of property investors in the market is to target optimistic returns. However, this does beg the question – if property investing is such a smart and lucrative profit making machine then why don’t more people do it?

Property Strategist Sam Saggers: ‘How You Can Benefit From My Wins And Losses’

Real estate is a game of winning or losing, and as a professional property strategist, in order to get to where I am today, I can honestly say I’ve experienced the full spectrum. But to understand how I’ve managed to turn any loss I’ve had into a gain and support others to do the same, it helps to know where it all began.