Inside The Mind Of A Property Investor
Being a successful property investor means overcoming your own mindset. Doubts, pessimism and fear can all stop you from taking the plunge, even when your research, knowledge and financial position are all sound.
At Binvested, we meet many clients with different goals and dreams who encounter various hurdles. Here are a few investor types we have met and the types of MAP sessions we offer them.
The Eager Beaver
These investors are characterised by enthusiasm. They have seen people making money from rising property values and are suffering from FOMO. They are excited about investing, confident of success and want to grow their wealth and income to a level where they can get out of the rat race and live life on their own terms.
The attitude is great, but overconfidence is a curse in property investing and the eager beaver needs to slow down, take a breath and get a plan in place to avoid making simple mistakes.
The first step is education. They must learn how property investing works and what they actually want to achieve long term. Their MAP session is about knowledge and developing an investment strategy. Then it’s off to see a financial planner to develop a finance and savings plan and get their borrowing capacity into its best shape.
The Hesitant Dreamer
These guys are the opposite of the eager beaver. They still want to invest in property and create wealth, but have a “can’t do” attitude. There is always something stopping them from getting it done. They are risk averse, lack confidence, are skeptical about markets or stuck in their comfort zones. They want to create a great lifestyle for their families in the future, but don’t want to make sacrifices to their lifestyle in the present.
Healthy skepticism is great for protecting you against scams and stupid mistakes, but you have to draw a line somewhere! By not making a start, these investors are choosing to miss out. The current low interest rates make now as good a time as any to begin a property investment journey.
Their MAP session explains how to build a portfolio, reassures them over any doubts and gives them the nudge they need to get started.
The Small Potato
These investors are destined to have one or two investment properties, but no more. They may be confident in their knowledge, but complacent about managing their assets. They choose to wait for problems to resolve themselves rather than take steps to improve their portfolios. They may be paying too much interest, or are working with the wrong debt structure and are confused about the next steps to take. They think a small portfolio is still better than what their friends have done and therefore fine as it is.
However, they still want growth, financial freedom, equity and passive income.
An advanced MAP session gives them a refresher on the current investment environment and helps them reimagine what they’re doing in order to move forward.
Zinger’s financial strategists also look at their debt strategy and investment structure to identify key improvements.
The Big Cheese
These investors have large property portfolios and are full of confidence. They have tasted investment success and rate their knowledge as up there with the best. They are proud of their accomplishments and motivated to be the best they can be.
But the big cheese still has a need for an advanced MAP session to provide ongoing mentoring, market updates, new opportunities and a review of their investment and debt strategies for potential improvement. Even small tweaks to big portfolios can make a serious difference.
Some first time investors wait until later in life to take the plunge. They realise their super won’t be enough in retirement, or they’re worried about the economy and what might happen to their shares or savings. They are comfortable now but worried about the future.
A MAP session examines their best options for making the most out of property between now and retirement and setting up income streams to sustain their lifestyles on top of what they can expect from their super. It’s never too late to learn about property investing and take steps towards greater financial freedom.