Why incorporating ‘flexibility’ into your investment strategy is key to long-term success
While building a comprehensive 10-year wealth strategy is important for investors to stay focused on the “end game”, property experts urge buyers to remain flexible with their goals.
In a recent episode of Property Investing Insights with Right Property Group, Victor Kumar, Reshmi Kumar and Phil Tarrant reminded investors that long-term strategies require flexibility buffers – ensuring that investors don’t burn out and stay consistent to their goals.
Drawing on their experience, the Right Property Group agents said investors should consider “designing their decade” by creating a long-term and strategic vision of where they want their lives to be, including property investment, financial goals and lifestyle choices.
Reshmi Kumar explained that while a decade might seem like a long time for investors, long-term planning protects investors from getting lost in the day-to-day and ensures that they can continue to live their lives.
“If you don’t have control over how you’re going to design it in terms of the wealth creation, then you get sucked up into the investing and chasing the money rather than living the life that you need to be living,” Reshmi Kumar said.
“One of the things that people get wrong is to compromise lifestyle for the sake of investing – lifestyle in the forefront, investing in the background,” she said.
According to Right Property Group agents, longer-term investment plans also ensure that investors do not simply react to opportunities or market conditions as they arise, as short-term thinking can derail long-term gains.
Rather, they should focus on developing a holistic, well-planned approach that aligns with personal goals and financial objectives, with an understanding that flexibility, mindset and consistent execution are critical to success.
“One of the things that most people do is overestimate what they can do in a year, but they substantially underestimate what they can do in a structured 10-year plan,” Right Property Group director Victor Kumar said.
While the two property experts believe property buyers should have a 10-year plan, they urge investors to remain flexible and review it over time.
“When you’re designing your decade like this is your overall plan, that’s what you want to do now,” Reshmi Kumar said.
“But then as you mature your lifestyles, things are happening in your life, you change and your goals change; what you wanted to do is not necessarily the same as when you created your plan.”
Additionally, Victor Kumar said that economic changes, market changes and life circumstances should also be reviewed.
“You’re then really investing within your means, in your affordability, in your lifespan, taking into account money, age and other things happening in your life,” he said.
“But as the portfolio grows, as you go through the process, that goal and the clarity of that goal becomes important.”
While the Right Property Group experts believe that having a strategic life plan is important, they emphasise the importance of shifting from consuming information to actively implementing strategies.
“You can have the best plan in the world, but if you don’t execute on it, it’s not worth the paper it’s written on,” Tarrant concluded.
Listen to the full conversation with Right Property Group here.