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 obviously the 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. Right now, the economic landscape makes this point clear. Interest rates are going up, inflation is all over the place, there’s an unruly 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-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.
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.
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.
