For rookie property investors, how to seek help, understand the basics of investment strategies, housing market and leverage relationships for beginner’s success? Is paying for advice good spent money?
Wanting to be a Property Investor
What do you think about Mentoring Programs?
Everyone is a rookie property investor at some stage
Actually when buying my first investment property, I didn’t know anything about the property market and anything that could go wrong. I have been a renter for more than 25 years, purchased our first (and last) family home in late 90s and started after the crash in the stock market (September 2011) to look for an investment vehicle that I can control.
By now investing in properties has worked and been even better after quitting my job. Getting higher leverage, independence from brokers, fund managers or alike and being in control of my own destiny that are the real drivers. In contrast to many people, money for me is just a vehicle to get from A to B, like a car to reach a destination.
Why do I tell you this? Well, at the time I was working long hours in IT, lived in Wellington, worked in Frankfurt, Sydney, Melbourne and also suffered from endless business trips, high blood pressure... But I had more cash-flow on the road to nowhere. And that is my first point for the rookie investor—don’t start believing in easy money. Investing starts with yourself figuring out what brings you from A to B.
Figuring out the help rookie property investors might need
Just from the beginning you need to understand that getting help to leverage time, money and knowledge must be part of your investment strategies. Note the difference; seeking for help is not looking for somebody who takes the hurdles for you. The concept to congregate with like minded people and exchange creativity and intellectual property like finance brokers, lawyers, or agents to establish (business) relationships is not the same as looking for a “teacher, mentor” or alike.
Funny, at the time I was looking for some type of guidance I could not find any. Now it seems to be just the opposite. It is quite annoying the increasing numbers of “property experts” sending emails and invitations with stories how they got rich. They make claims to entice their listeners to join all sorts of programs - only to buy their books, DVDs to believe in and copy their incredible stories.
Don’t get me wrong, a course or mentoring might suit your needs if you know what you want to achieve and accelerate making progress. Compare it with professional sports, if you want to beat the world elite, you will need a trainer and a team. Finding somebody who can figure out my destiny, solves my problems—I never tried and never will.
Housing Market—your starting point
The housing market has always been polarised for winners and losers and a hotspot for bad news. The “have-nots” will continue to blame the “haves” regardless any matters. If you have got common sense and broaden understanding about the economic drivers like the law of supply and demand, I guess you will become a successful property investor. Consider the scarcity value and the potential of growth of investments and your success will accelerate.
In contrast if you believe in getting quick rich schemes or systems guaranteeing you a LOTTO win, well look around, the majority of LOTTO players are losers.
Be aware of predatory buying practices
I receive a lot of spam and promotional emails in my mailbox telling me that the majority of senders are looking for stressed people to engage them in predatory buying practices.
The common concept to entice you to buy something are incredible stories or headlines for creating fear with offering the subsequent solution. Inflation, interest rates, falling values and everything scary are good motivators. You need only to buy it.
True, everything has a direct impact on property market but knowledgeable people are not scared, they manage it. On the opposite good resources for interested readers are when joining an online forum and local groups as member of the Property Association.
Know basic strategies and property cycles
It is essential to know the basic for buy-and-hold and trading strategies, which have worked in the past. A strategy to build up equity works in all market conditions like renovating to build-up equity.
Each country, each region and each suburb has its own property cycle. For instance compare Auckland or Christchurch with the rest of the country, or compare New Zealand with Australia— you will figure out differences.
Is paying for advice good spent money?
When looking for advice from somebody, check their background and understand what pays those people’s bills. Are they active investors or do they derive income from something else? Learn to identify good selling stories, especially when having a frenzy about something. Far from reality those stories are to pay their bills.
Following my blogs, you already know that I don’t necessarily agree with the academics in the media. They have continuously failed to predict the economic future, or why then did nobody see the financial crisis (GFC) coming?
My point here is – only you know your destiny, knowledge gives you confidence and success comes with experiences. If you have some spare money, you could go on holiday or join a mentoring program—either way, enjoy what you like doing. Good luck.
Klauster Blogs lead to a real person, IT professional, investor, landlord and business owner with interests in technologies, properties and trading.
His passion, making experiences available and helping people like you, comes from extensive travelling and the principles of life—how to avoid pitfalls in unfamiliar territory when investing or forming relationships.
The philosophy to treat life, partnerships and hobbies as an investment has helped people in his circle. Life is a dream with a deadline, happiness comes from making the right choices and having realistic expectations.
Come along and share your views—learning for results and confidence
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