The 3 ‘Big Rocks’ of Property Investment Success
What are your Big Rocks this year? What are your Big Rocks for your property investing journey?
If you’re scratching your head and wondering if you’ve accidentally stumbled across a blog for construction workers, bear with me.
Big Rocks is a concept often used in business or life coaching to essentially describe your priorities. The theory is, if you don’t have clear priorities, or if you have too many, chances are you’ll let smaller issues distract you and ultimately fail in your goals.
By assigning Big Rocks, or priorities, you’re focusing your energy on specific outcomes. Make sense?
It works for property investment too. There are some Big Rocks that you need to have, cultivate and nurture to reach the desired outcome of passive income and the life you desire. Lose sight of one of those Big Rocks and the outcome is jeopardised.
So, what are the Big Rocks of property investment success?
INCOME
Being a successful property investor is at least 50 per cent reliant on your income. Without an income, you can’t borrow money, or at least have limited borrowing ability. The higher, and more stable, your income, the more you will be able to borrow. What then follows is lower interest rates, and a high loan to value ratio. The better your income the more choice of lenders you have, so more competitive rates and terms become available. Taking time to do some extra training to ensure a promotion or pay rise, shopping around your industry to make sure you’re earning as much as your counterparts, or negotiating a contract over a casual or freelance arrangement, can all help increase and stabilise your income from a lender’s perspective. Look after your income, and it will look after you and your investment plan.
TIME
Get this into your DNA – you have to give property investment time. And we’re not talking about weeks or months or even a few years. We mean 10, 15 or 20 years of time to let your properties do their thing in terms of capital growth and rent rate increases. Property investing success is born out of a buy and hold strategy and it takes TIME! If you’re buying properties, doing quick renovations and flipping them, that’s a different ball game. If your aim is to have a booming portfolio that generates enough cash flow to supplement or replace your current income, then you have to invest the time it takes to build up that kind of business.
SELF-BELIEF
As soon as you start to tell people you’re going to invest in property you’ll notice that pretty much everyone you know has an opinion on it. While many of these people will be family and friends, most of whom will be well-meaning with your best interests at heart, the fact is that 99.9 per cent of their advice will be based on absolutely nothing.
Unless they are successful property investors themselves, their chatter will be based on nothing more than their own opinion, and much of it will be negative. ‘It’s too risky, the market is too unstable, I knew a guy who lost his life savings….’ – you get the gist. Smile, nod and say thanks very much, but ensure you’re getting your information on the market, lenders, interest rates and everything else investor-related from people who have the knowledge and expertise. That way you will go into each investment with the self-belief that you’re making the right decisions and believe in your own strategy and plan.
Self-doubt will stop you from seeing opportunities when they arise. Get educated and informed so that you can keep your self-belief where it needs to be.
SET YOUR BIG ROCKS STRAIGHT
Learn more about the Big Rocks of property investment at one of our free property investing seminars.
Sign up now and discover how to establish and rollout your Big Rocks with experts who have a proven track record of success in real estate.
Limited spots are available so secure your spot now.
Recent Articles
How To Create A Step By Step Property Plan
To succeed as a property investor, there is one fundamental component you need – a plan. You need a plan that leaves no bases uncovered that would potentially cause issues in the future. Don’t have a plan? Well, you can use my basic road map!
The Secret Behind Buying A Winning Property
When you analyse a deal, it is wise to take it through the following four steps to ensure you have a basic level understanding of the property itself and how it fits into its environment…
Is Buying Off The Plan Right For You?
Buying off the plan can be a great purchasing strategy for property investors because it allows us to create equity for a small amount of money upfront.
In this article we explore what buying off the plan is, and what factors you need to consider in order to go through the process smoothly.
The Ultimate Location Rulebook For Buying Property
Within any market – primary or secondary, there are indicators of the market’s ability to perform. When we understand what these market drivers are, we can organise our investment properties into locations that are primed for growth. The ‘Location, location, location’ is actually derived from more than just a post-code. These buying factors are split up into two groups – macro drivers and mirco drivers…
1 Deposit, Multiple Properties – Here’s How!
Buying an investment property and growing a portfolio that is going to generate long-term wealth is a discipline of business. In basic terms, this means you have to have a clear understanding of how you’re going to maximise your profits. Because of this, every investor needs to be able to develop a cash on cash strategy to help bank roll their property endeavours to ensure they have a functional and profitable business model.
How To Accelerate Wealth Creation Through Real Estate
Wealth is a habit; and rich people have the habit of living well. They pass that on, they teach, share, network and help each other. The fact remains, those you surround yourself with, do have a high impact on your ability to create and sustain wealth.
The 3 Golden Rules Of Lending
Lending money to invest in real estate binds property investment together. Without taking on debt or risk, the average person will seldom advance financially in life. Without borrowing money, we as investors would be limited and completely stuck.
It’s important that lending is discussed, and investors recognise and understand the best type of investment loans. Here are three very simple rules to follow when borrowing funds for investing.
How To Claim Back 78 Per Cent Of Your Tax!
There are ways to reduce how much tax you actually pay in order to keep more cash in your pocket – the golden word – property investment. You see, owning real estate in Australia can be very tax effective. This is how you can minimise the amount of tax you are liable to pay.
How To Prepare for a Rise in Interest Rates
Smart property investors know that it’s dangerous to get too comfortable. Real estate is an ever-changing thing. Markets go up, down and plateau – and so do interest rates. The question is, how prepared are you for a Rise in Interest Rates? The key is being ready to use these strategies.