Sound property investment strategy
Sound property investment strategy safeguards investors against outside “noise”. So that they make choices that are relevant, smart, and unique to them and their lifestyle choices.
Have you ever wondered what makes property investors successful? What do they do differently, those “really successful” ones; what did they do so effectively?
Success is determined by the choices we make
Success is determined by the choices we make, and actions we take. And while these may seem less valuable sometimes, they are actually THE biggest factor that makes the small percentage of successful investors in the world, different from the rest.
Highly successful investors take action without yielding to challenges and risks. It’s not that challenges and risks don’t exist. Interest rates may be going up, inflation may be all over the place. There’s a war in Ukraine. The climate is starting to meaningfully beat us up. And there is so much more uncertainty than we have experienced for a long time.
It’s not that these risks don’t exist for all of us, it’s just that when they show up and you know who you are as an investor because you have a well thought through strategy. A strategy supported by numbers that you have calculated. That is relevant to you uniquely. That helps you understand your worth. You have a team, you’re clear about your strategy, resources, income, expenses, tax obligations, borrowing capacity, what sort of investor you are, and what you want to be, and you can wear the hard knocks effectively.
Risks Exists for all of us
It’s not that these risks don’t exist for all of us, it’s just that when they show up and you know who you are as an investor because you have a well thought through strategy-supported numbers that you have calculated, that are relevant to you uniquely, you know your worth. You have a team, you’re clear about your strategy, resources, income, expenses, tax obligations, borrowing capacity, what sort of investor you are, and what you want to be, and you can wear the hard knocks effectively.
When I was a kid and a storm was brewing (I lived in Johannesburg, South Africa; and for those who know the weather pattern, summer afternoon thunderstorms are a given, or at least they were back then). My sister would say “let’s draw the curtains and have a cup of tea”. She wanted to shut out the scary stuff and focus on the basics that kept her safe, dry, and warm.
Safe dry & warm
Likewise, a sound strategy that was planned for and executed well, gives you somewhere “safe, dry, and warm” to be when that pain comes at you. You can withstand it somehow, and don’t panic or overreact. Investors who safeguard themselves against outside noise and influence make choices that are unique, that are smart that yield great outcomes despite the ocean of chaos going on around them.
Being in an uncomfortable position but being comfortable with feeling uncomfortable is what it takes. How? Sound strategy, well executed, giving you clarity, confidence and control.
This is what it really takes to invest through multiple cycles, multiple periods of interest rate hikes and drops, inflationary uncertainty, recessions, booms, commodity prices up, oil prices down, losing jobs, getting jobs, having kids, growing up, getting old, sick or just wanting to take a break – essentially life.