Real Estate Motivation Tips for Investors – 4 Helpful Strategies to Learn
Have you wondered about real estate motivation strategies and tips from a property investor’s perspective? You’re lucky because this article will share four helpful strategies you should learn.
Staying motivated to achieve a goal can be a struggle at the best of times, and investing in property can be a slow-burn approach. In fact, there’s no such thing as a quick buck from any investment.
Most investments take a certain amount of time to deliver positive returns. If something seems too good to be accurate and offers a quick return, chances are it’s dodgy.
But if you’ve got your eye on investing in real estate to generate passive income or create wealth, you’ve got to stay motivated and driven. A positive attitude goes a long way in this game.
However, we must begin by describing why people invest in property.
Why Invest in Real Estate?
Property investment has been a low-risk investment strategy employed by regular Aussies for decades now. Simply put, you can invest in property by purchasing existing or new real estate, which you lease out on the private market.
Typically, your tenants will pay you rent, which you then use to pay down the mortgage on the home and hopefully pocket some profit along the way.
A real estate investment is a classic way of generating passive income, which is money you earn without labour, such as working. Sure, there are tasks associated with investing in property.
Still, an excellent property manager agent can relieve most of the headaches.
Let’s crunch some numbers.
Say you purchase a property, such as a townhouse, for which you can charge $450 weekly. That’s $1800 a month or $21,600 a year. That’s a decent top-up to the average Aussie income.
Another reason why property makes a solid investment approach is because it tends to appreciate. This means it goes up in value. If you purchase a home for $750,000, it may be worth over a million in a few years – depending on how the market for the suburb develops.
Let’s share some helpful strategies to keep your head in the property investment game. Read on to discover them.
Knowledge is Power
Here at Little Fish, we have a saying: knowledge is power, but it’s also money. This means you must be armed with all the knowledge you can gain about your goal. In this case, the knowledge is all about property investment.
Knowledge is power because it empowers you and arms you with the facts you need to achieve your goals. The money component is because, with the knowledge you learn, you can leverage it to create income and wealth.
For this reason, you want to learn everything you can about investing in real estate. You might create a list of books about property investment and slowly make your way through them. You can subscribe to online publications that share investment tips and strategies.
Furthermore, you can watch YouTube channels that focus on real estate investment.
You’re building your knowledge by learning as much as you can about the space. In addition to this, you’re also staying motivated because your head is in the game all the time.
Sure, you can take a hands-off approach to invest in property. Some people choose a set-and-forget strategy and avoid learning more. However, we can guarantee that those who pursue knowledge in the sector are the ones who come out ahead of the rest.
Real Estate Motivation – Understand the Risks
Part of real estate motivation is understanding the risks associated with property investment. Once you’ve learned them, you can then work on mitigating them.
No investment is without risk; there’s no such thing. Some forms of investment are more volatile than others, such as the stock market, as those returns are based on the performance of publicly listed companies. Even though property tends to be more stable, there are still risks.
One significant risk is that the property you purchase may depreciate instead of appreciating over time. This can be due to suburb market trends, like if you bought a property in an area that declines in value. This is rare but can occur.
You can mitigate this risk by researching and purchasing in areas likely to grow significantly over time. For instance, you might purchase in a suburb with lots of development, such as new schools, parkland, and retail and commercial estates popping up. These things create demand for real estate, which means prices go up.
Another risk is that you purchase a property that remains vacant. This means there is no positive cash flow, as you need tenants living in the home to pay rent and create your passive income.
A way to mitigate this risk is to ensure you charge the appropriate market value for the home based on comparable homes in the area. You should also promptly attend to any repairs or works required on the home to make it suitable for habitation.
Time in the Market vs. Timing the Market
Let’s continue to discuss real estate motivation. One way to stay motivated is to understand that time spent in the market wins over timing the market any day of the week.
Let’s unpack what this means. Timing the market is a term used to refer to waiting for a particular point in time to sell your property for a maximum return.
For instance, you wait a few years after buying an investment property and then sell it to make a few hundred thousand over what you paid.
However, time in the market means spending significant time in the market and holding your portfolio until it appreciates exponentially.
A way to stay in the game of real estate motivation and remain motivated is to understand that time in the market always wins.
For instance, your parents may have bought the family home for $80-9000. It could fetch anywhere from 1.5-2 million if they sold tomorrow. That increase in value over 30 or so years is incredible. So, patience is critical to profiting from capital gains.
Again, stay motivated by understanding that time in the market wins over timing the market any day of the week.
Real Estate Motivation – Understand the Why
Part of staying motivated for any goal is understanding the “why” or why you aim to achieve that particular goal. Having a tangible goal to work towards is always crucial to maintaining motivation.
For instance, you might aim to create financial freedom by your forties or fifties and retire early. This is the “why” you’re pursuing property investing.
The long-term goal might be to amass an extensive property portfolio that will enable you to make a living off the passive income generated by your properties.
Another “why” might be to set your kids up for their future. For instance, you might purchase just one home as an investment, use the rental income to pay the mortgage, and then give the home to your child during their twenties to set them up nicely.
This helpful article has covered four helpful strategies to keep in mind with real estate motivation. By following these tips, you should be able to remain focused and motivated and be able to work towards your goals.