14 Sep Habits of Top Real Estate Investors
The fastest way to achieve what somebody else is achieving is to copy their behaviours. Good business people duplicate the daily habits of top executives, and elite sports people watch the best in the world compete to learn what actions they can copy in order to improve their own performance. Even if you are purchasing your first property, there are some habits you can adopt habits from top real estate investors that will enable you to think as they think and move towards achieving your real estate investment goals.
- Educate Yourself Consistently
Top investors in every discipline understand the market they are in, and real estate is no different. By the time changes in the housing market reach the evening news, the information is already outdated. There are thousands of real estate websites that will email you weekly news with regards to the housing market and the impact of political changes, economic adjustments and the effects of changes in population and infrastructure. Put aside some time at least every week to read articles, listen to podcasts and watch videos from experts. That way, nothing will take you by surprise.
- Politics and Policy Matters
Political changes can have enormous effects on the property market. Whether it’s positive or negative information, top property investors make sure they are up to speed with all legislation and policies that may have a direct effect on them. Without knowing, not only what is happening, but what the ramifications will be, top investors can position themselves properly – either taking action or benefiting from the actions of others. For example, if there is significant concern regarding a new piece of legislation, investors should understand whether this is genuine and relevant fear, or if the media is over hyping something that will have no relevance at all. If the latter is true, then there may be opportunities to purchase property at reduced rates or restructure finance. If there will be an impact, then investors can ready themselves for changes, sell assets or put plans in place reduce the impact.
How do you gain access to this type of information? Your networks become crucial in this case. Ask your advisers, “what will happen if…?” And then do your own research, scour the Internet and reputable blogs, and then make an educated decision.
- Know the Numbers
Property investment, like any investment strategy, is all about the numbers. In this case, hopefully it is about increasing equity, and more zeros in your bank account; but in order to get to that point you need to understand the numerical inputs. This includes knowing the tax benefits available to you, how to structure your accounts, and anything you should be doing to enhance your position. This, in turn, begins with knowing the numbers, understanding your current position and not being afraid to confront anything you may find distasteful. For example, if there is some debt that needs to be dealt with, then confront it, deal with it and move on. If there are opportunities to be had, make sure they are being grasped, and that you are in a position to do so through understanding the numbers that are critical to you and your investment portfolio.