Why is a plan crucial for success in property investment?
When it comes to the property market many investors take a slap-dash approach with little regard for a well-thought-out strategy. So how can an investment plan benefit you?
We all know the importance of creating a structured plan to help us accomplish a goal in life, such as studying to further your career, saving for a holiday or even starting a family.
For example, you would need to create a training plan if you had aspirations of completing a marathon.
Your plan might comprise a three-month training regime in which you run three times per week, starting with distances of less than five kilometres before methodically increasing the distance until you are able to run 42km. As part of your training plan you might even alter your diet, choose to eat healthier options and perhaps even join a gym – all so you are best placed to reach your goal of completing a marathon.
So if it’s important to make a plan to help you achieve your goal of running a marathon, it would be an understatement to say that making a plan for property investment is crucial.
But how can a property investment plan help you achieve your goals and what should a good plan include?
A property investment plan is a simple, yet effective way to help you follow and reach your goals, as well as celebrate your achievements along the way.
Even if you already own an extensive property portfolio, creating a plan now can enable you to better gauge your progress and ensure you’re on the right path to reach your objectives.
A property investment plan should comprise both short and long-term goals and outline what you have to do in order to achieve these in the shortest possible time, or at least a realistic timeframe.
A viable plan should consider your risk profile, life circumstances and financial capacity, both present and future, taking into account job promotions and pay rises etc.
Your life circumstances should include your relationship status (are you single, planning for marriage or already married), number of existing or planned children and your desired retirement age.
Once you have clarified this information you can begin to develop a plan. This should identify the types of properties that are suited to your portfolio, how many properties you want to acquire, the estimated timeframes you can expect to purchase these and the appropriate steps you need to take to achieve success. A thorough plan will also involve a component of financial forecasting.
To help keep your objectives in reach, it’s important to breakdown your goals into smaller steps and create a comprehensive action plan to achieve the overarching aim.
Adjustments to the plan will have to be made from time-to-time as market conditions or life circumstances change unexpectedly.
However, with your property investment objectives mapped out on a plan, you can constantly refer to your strategy to stay motivated and achieve your long-term goals faster and with greater ease. If you’d like to have an expert property strategist help you develop a personalised plan, please call us on 9221 6399 to speak to one of our strategists today.