2 questions to ask before investing in property

“I go through things such as ‘why property’, mastering the mindset, budgeting strategy, learning how to do the groundwork properly, building your dream team, picking locations, renovations, all the way down to exit strategies,” he said.

While writing the book, Mr Glossop’s aim was not to teach his readers how to make money through property. Instead, he wants them to learn how property can fit into their lives and consequently allow them to build wealth over time.

Instead of immediately thinking about where to invest and what to invest in, the property investor encouraged people to look within themselves first.

What drives you to invest and create wealth? What do you need out of it?

“Every investor will be completely different to the next, so you have to find out who you are first, find out what drives you, find out what you need. From there, you can utilize some of the guidance in this book to actually get you to that place.”

Why it matters

While the fundamentals of property investment, such as location, yield and capital growth, are important factors to consider, Mr Glossop encouraged budding investors to begin, first and foremost, with the assessment of their personal and financial circumstances as well as their investment goals, from short-term to long-term.

After all, property investment is not merely about buying property after property, he said.

According to him: “When I first started out, I’d say, ‘No, it doesn’t matter. You’re just buying property and, hopefully, you can hold them all long enough that you'll make a bunch of money, then you’ll pay them down and you’ve got a residual income.’ But if you don't have the why, you lose inspiration.”

“It’s not just in property—it could be in business, in becoming a better surfer or a better dad. If you don't really have a reason why, then you might get to a point where you switch off.”

Simply, the ‘why’ allows the investor to determine what motivates them to invest in property. By knowing the ‘why’, the investor can move forward to figure out the ‘how’ – what is necessary to achieve their goals given the circumstances that they are currently in.

Knowing their motivation will also help the investor understand that there is no one way to succeed in property. Success will ultimately depend on their capabilities, limitations and goals as individuals.

“You’ve got to find something to give you some direction, otherwise you just don’t end up anywhere. Something very, very tangible, that’s what you need.”

“Happiness is however we choose to define it. Unfortunately, money is going to play a definite role in happiness. For me, it’s to say, ‘Find what makes you happy and then figure out what that number looks like. Then, utilise property as a vehicle to get you to that point as safely, as strategically and as quickly as you possibly can without necessarily sacrificing what happens in between.’”

“Money isn’t really necessarily this huge reason why I do property investment anymore and I love it,” Mr Glossop concluded.

Tune in to Paul Glossop's episode on The Smart Property Investment Show to find out how to master the investor mindset.

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