The fact that property is an unpredictable market to invest in is nothing new. How then do property investors take calculated risks that yield success? Is it all just a guessing game? While there are formulae to calculate a possible outcome at any given moment, property investment projections are far more complicated than that. There are so many elements to factor in when weighing the implications of an investment that there usually isn’t a single, universally correct answer. We’ve compiled a few distinct behaviours exhibited by successful property investors to guide you in the right direction.
1. Honesty Is The Best Policy With Tenants
As a property investor, you’ll probably need to attract tenants and maintain a healthy business relationship with them. How do you do this? Property investment isn’t a highly regulated industry, but you could opt to always be honest instead of taking advantage of this. It will help you develop a positive reputation, marketing you as a trustworthy landlord to future tenants.
2. Always Find The Best Possible Loan Deal
When sourcing a property loan, it’s imperative that you make comparisons first. Don’t just jump in on the first deal you’re offered. There’s always someone willing to offer a better deal. Loan amount and interest aren’t the only important factors – check for benefits and added extras as well.
3. Pay Attention To Who’s In The Area
Before you decide on an area to invest in, do a little research on the businesses that the area attracts. Large fast food and supermarket franchises only set up shop where they believe they’ll have a steady stream of local customers. What does this mean for you? A revolving door of potential tenants, that’s what.
4. Plan Ahead – Use Your Head And Not Your Heart
The most important habit of successful property investors is planning in advance and in detail. With an investment as huge as property, you can’t afford to act on a hunch. You need to punch in the numbers, allocate funds and make provisions should the market move in an unanticipated direction. This helps mitigate your risk effectively, protecting your pocket in the long run.
If you’re keen on learning how to apply these habits or anything else related to making a property investment, contact Aussie Property Guru to chat to an expert today.