Why it's important to 'enjoy the journey' in property investment
One of the secrets of successful property investors is the ability to look back on the fundamentals of their journey—from their simple everyday motivations and inspirations to the very reason why they started investing on properties.
Many budding investors don't get around to actually building a lucrative portfolio because they tend to frame their mindset based on the experiences of other investors which they have heard of, ultimately forgetting that property investment is neither a race nor a contest of any kind.
"[They often say]: Like, my family, we never spoke about money, they weren't property investors, they weren't anything. I didn't learn anything like that. I just organically worked hard and shit happens... A lot of people are restricted by these preconceived ideas about property investment," Smart Property Investment's Phil Tarrant said.
Mortgage broker Troy Phillips believes that the road to success for any property investor starts with education—learning about finance, the markets, and most importantly about one's self. Aside from knowing the technical aspect of property investment, understanding one's motivations and goals can also empower an investor to make smarter financial decisions.
According to Troy: "I think the investment in yourself is the best thing you can do... You don't want to wake up one day and be forty and have missed the opportunity to have actually had a chance... to invest in yourself, because you won't then. And all you are is someone who is beholden to a massive amount of debt to a bank, riding a property market."
"You need to have some other string to your bow... If you're someone who is a really rigid and disciplined person and understands the market—whether the stock market or the property market—well, you back yourself in that, and that's investing yourself... But, always have a plan B," he added.
Being educated also entails finding the right mentors to guide you on your property investment journey. Financial adviser Tony Caine believes that having the best financial team is equal to, if not much better than, having the best resource materials for learning.
"[By] [b]uilding a team [a]round you, I used to find that [it] helps a lot. If you're not sure you're gonna do it, you're not gonna do it. I'd probably go and spend the money, go and see a good accountant, go and see a good [adviser], and let them outsource it. Let them take charge and do it for you to make sure it gets done," he said.
While the destination is truly important, a property investment journey is still more about the lessons an investor can learn along the way, which he can use to ultimately succeed in the long run.
Phil concluded: "Enjoy the ride. Enjoy the journey. You know, the destination is important but you got to enjoy getting there... Making sure that you build your own capabilities so you can go and make decisions you need to make is key."
Tune in to Troy Phillips and Tony Caine's episode in The Smart Property Investment Show to know more about the benefits of working with financial mentors, as well as the ways in which investors can channel their sales profits and leverage their debt.
More from this writer:
-
Why it’s still worth selling – even in lockdown
-
Over 200 Perth suburbs see winter price growth
-
Auction volumes on their way back up
-
Low interest rates drive record refinancing
-
Tassie’s own $20k HomeBuilder grant finds early success
-
Capital cities see stronger auction success
-
2020 vs 2021: How lockdowns have impacted the market