Harness Data To Help Guide Property Investor Profits
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.
Hey there, do you enjoy the Positive Real Estate Blog? If you did, why don’t you book into a Property Information Night in your area and get more information from our team. You can do so here.
Can a spreadsheet tell you if a property is a sound investment? Many people think yes. Today, I’m here to tell you why it’s not that simple. You can invest based on data and economics or you can pay attention to human behaviour. Which path is the most reliable for your wealth creation journey? Today, we are going to talk about that and how to invest in a post-COVID world, where a lot of the old rules have been thrown out of the window.
Over the past few months, Australia’s immigration numbers have significantly reduced due to the worldwide pandemic. Now that things are opening back up again how does this affect us? Where will we fit them in? How will the property market be affected? All good questions so join us for Wealth Coffee Chat!
If you’re looking for investors who share the big mistakes and the big victories of investing, then you’ve landed at the right episode.
This week my guests are Agatha and Warwick Moreland. Having invested in real estate for more than 40 years, Agatha and Warwick have a lifetime of lessons to share with me.
These two are so beautifully honest. They share “mistakes” such as buying whilst on holidays (which has turned out to be a blessing in disguise). They share how they didn’t invest in Port Melbourne for $29,000 because it was considered too expensive. And they also share some of the biggest pillars of their investing success.
A teacher and engineer profession, Agatha and Warwick are in the consolidation and lifestyle phase of their investing life. With incredible lifestyle choices in front of them, you can’t help but be inspired by the commitment these two have made to each other and their financial wellness.
The housing market has officially hit the record valuation in just 5 months! As property investors, it is important to keep up to date with what is going and finding out what we need to keep an eye on. Let’s Wealth Coffee Chat!
Off the plan buying is super important to understand and it’s not always easy to get your head around. They can be many different pros and cons to off the plan buying so come along and join Jason to find out more. Let’s Wealth Coffee Chat!
The APRA is back and clamping down hard on the housing market and are preparing to release lending restriction options. Is this something you need to worry about? Let’s Wealth Coffee Chat!
What are the 4 lanes of wealth and which one would best suit you? Come along and find out how you can make the most of these 4 different lanes throughout your wealth journey. Let’s Wealth Coffee Chat!
Today we are learning about equity. What is it? How do you tap into it? Leveraging equity is a big part of the property investment game, so how do people use it to get themselves into the 1%? This is what we are talking about today. If you have ever played Monopoly, you probably understand that becoming wealthy is about acquiring assets. In order to do that, you need cash.
Being able to understand money and wealth is crucial and unfortunately, the majority of people don’t know how to. Let’s Wealth Coffee Chat!
Lauren is one of the most inspirational investors I’ve met. Having worked her way through a divorce and faced head-on the challenges of being a single parent, Lauren hasn’t let her fears or challenges stop her from investing in real estate and working on her financial future.
If fear has stopped you from investing, or your life circumstances have felt all too hard, then I’m sure you’ll be inspired to take action after listening to this conversation with Lauren.
Once you’ve listened to this episode, I’d love it if you hit the subscribe button so you get notified every time a new episode drops.
I love hearing people’s property investor tales so if you’d like to share yours then please get in touch with me via email at firstname.lastname@example.org
You can watch all of these podcasts over on YouTube at Positive Mentor or at positivementor.com.au