Investors Mindset - your reason why

For those that are just starting out in property investment there is usually a mental journey they must take before they achieve success and here are just a few of the things we recognise they must come to terms with along the way.

 

1.  Find your reason why

It is all too easy to forget why you started out in property investment and become engrossed in the process of buying and staying on top of the investment's progress and if storms come like interest rate rises or boilers going draining your buffer - it can become a negative force on your intentions for investment.

So its important to be able to recall your reason why at will and hold it in the forefront of  your mind to not become overcome.

So is it retiring early, being successful, leaving a legacy, getting your life back, getting more choices that motivates you? Then discover your reason - keep it there in front of you and remind yourself when times get tough.

 

2. Be disciplined

You cannot be a property investor without have some basic discipline - because the end result is directly affected by your ability to stay focused and disciplined. For instance your book keeping - which we assist with our online cloud software enabling you to produce an accurate tax return which again we assist with. You will have to resist tapping into your buffer when temptations arise because one day  your buffer will save you from trouble when the boiler goes or the mortgage rates rise.

 

3. Have high standards

Your property needs to be in good order and will stay rentable and achieve the highest rents if you invest in new fixtures and fittings. Your property portfolio will also one day incur a cost which will knock you back financially without adequate insurance. So don't cut corners and use the appropriate landlords insurance and accident cover to protect your investment and keep the income regular and consistent and maximised - speak to our lettings manager Andy Dillon for advice on this.

 

4. Begin with the end in mind

Not having a goal is a common mistake made by landlords - apart from knowing your reason why - you will also need to know how you intend to finish your investment plan - is it a 10 year plan? Are you going for growth 1st and yield 2nd? Are you looking to exit with a sale? or are you going to live off the rent after a certain number?

 

5. Have faith in the process

Property investing sometimes is not for the faint hearted - because over 10 years the growth will be clear to all - but sometimes the market takes a breather and it may cause you concern. We always reassure our investors that their investment is a long term thing. Ian often says "You don't plant a tomato seed and go outside the next day and expect to see your tomato plant?!" Its a get rich slowly scheme and will take patience and faith in the process.

 

 

We hope you found this blog useful and will see you next week

 

Until next time

 

Robin Campbell

www.midasestates.com