The learning process for property investing is important, but if you can avoid the mistakes others have made, you will gain an edge.
The learning curve of property investing costs you time, effort, and money. Costly fees come with mistakes, so it’s wise to get a leg up from those who have made mistakes and will share with you the things they would do differently now.
To help you avoid the pitfalls of poor investing mistakes, here are some tips you should incorporate into your life.
- Education is Imperative
Investing is stressful, especially when choosing it as a career. You may think you know enough to become successful, but you will come to find that is not the case.
You might have a couple of initial successful investments that make you feel overly confident. The problem with this is that if you get it right the first time or two, you start to think you’re smarter than you are, then suddenly failure besets you. Early successes are often due to a rising market, or good timing rather than your own smarts.
Recognize this early and educate yourself by reading books about investing and seeking out consultants, teachers, and mentors for guidance.
- Set Goals
Goal-setting is an action often neglected by beginning investors. Too many people starting property investing before they have a clue about what they desire to achieve, or even a time frame to achieve results. They buy a couple of investment properties, commonly within their own suburbs without setting any long-term goals.
Does that make sense to you? It’s obvious that you should start property investing with the end goal in mind.
Goal-setting provides you with the focus you need to know where you’re going and prevent you from getting lost along the way.
- Organize a Property Team
Just because you live in a house on a property, doesn’t mean you know so much about investing in it.
Property investing may be a simple thing, but it’s not an easy thing. It requires some knowledge and skill to succeed. Usually the knowledge and skill should come from others who know more about property investing than you do. Organizing a skilled property team around you of mentors, advisors, and experts is imperative to your investing success.
- Thinking Rich Instead of Poor
Most people feel they deserve wealth, but their income and skills make them feel limited. It’s vital that you develop the mindset of the wealthy and the habits of successful property investors.
“Don’t wish it were easier, wish you were better. Don’t wish for less problems, wish for more skills.” ~ Jim Rohn.
- The Abundance Mindset
Abundance is a mindset that will make you successful.
What does that even mean? One analogy to consider is to think of yourself a cup. A small cup will only hold a small amount of money, which is lost when any extra spills over. You can’t expect to have more money than the size of the cup.
The abundance mindset changes your concept of the cup, making it a bigger cup that is deserving of success and to be filled.
- Curb Your Gratification
You know that new smartphone you’ve been dreaming of? Can you buy it right now with cash?
People who don’t try resist instant gratification create more debt than wealth. They will use credit cards to buy what they want now without considering their finances. All you get out of it is interest you must pay to the bank for the privilege of using their money to fulfill your desire for that shiny new mobile phone.
To become wealthy, you must retrain your brain and curb instant gratification.
- Overcoming Limiting Fears
Fear is an overwhelmingly potent emotion that can be helpful, but most of the time, it prevents people from taking risks. That equates to avoiding investments because of the risk, regardless of how minimal. A sound and viable investment strategy alongside a skilled property team minimises your risks.
The best thing you can do for yourself before investing is to learn to feel uncomfortable in the beginning and overcome your fears.
- Don’t Let Failure Limit You
Everyone makes mistakes. Even the most successful people have made mistakes before becoming successful. Successful people don’t allow failures to hold them back. They brush off the failure, learn from it, and sally forth.
People are prone to worrying about things that aren’t likely to happen, which prevents them from being successful. Learn to hold back on worry until there is really something to worry about.
Hopefully, these tips will help you avoid the mistakes of property investors who have come before you. You can become a successful property investor if you listen, learn, educate yourself, and surround yourself with those who have the knowledge and skills for investing.
Consider implementing these strategies into your life starting now and you will surprise yourself when you find that success is within your reach
First Choice Mortgage Brokers are a Sydney Mortgage Broker operating under the Australian Credit Licence Number: 382370