Expert Advice with Ian Hosking Richards. 12/02/2019
It might seem like a silly question, but those who begin their property investment journey with very clear expectations tend to do much better at creating wealth than those with less specific goals.
When I meet with a new investor, one of the first questions I often ask is ‘How long have you been thinking about investing?’ The longer they have been stuck in the due diligence stage, the more confused they are likely to be. When I know what the concerns are, I can start to put these concerns into perspective so that the investor can finally move forward with confidence. Very often the second question would be ‘Why do you want to invest in property?’ This is a very important question, because the answer will very much determine the size of asset base that is required.
The problem is, most investors do not have a clear vision of where they want to end up. They tend to drift slowly in the right direction according to what they feel is realistic at any given time. They haven’t really given a lot of thought to how they would fill their days in the future, given that money was no object.
I have met with many hundreds of investors over the years, and have observed that the most successful investors aren’t the ones that started out with the most money, but the ones that have the most inspiring goals, and are highly motivated to achieve those goals.
Often this desire for financial improvement stems from parents from very poor backgrounds who strive to create more opportunities for their own children. That appears to be a powerful driver.
For me, the financial freedom I enjoy today is a direct consequence of actions I took 20 years ago. Equally, for new investors at the beginning of their property journey, where they end up in 10 or 15 years will depend on the actions they take this year, next year and the year after. So you need to get started soon.
Setting your goals is an exciting exercise. It’s not about being realistic, it is about putting down on paper exactly how you would like to be spending your days at some point in the future. For most people 10-15 years seems to be reasonable time frame. Once you have written down specific details of their chosen lifestyle, we can put a figure on how much passive income you would need to maintain your desired lifestyle. The dollar amount will determine your acquisition strategy.
My particular property journey has been an interesting one. Putting my focus on what I wanted, rather than what I thought was realistic given my circumstances back then, has served me well. If I look at what I planned for from the start, I have achieved everything that I set out to achieve, and more. I have had specific goals, and I have been focussed and strategic. Dream big, stay focussed, and you too could achieve more than you ever thought possible.
Ian Hosking Richards is a successful property investor with a portfolio of over 30 properties. He is the CEO and founder of Rocket Property Group, a leading independent real estate agency that helps hundreds of people each year enter the property market or grow their existing portfolios.
For further information or assistance, please visit www.rocketpropertygroup.com.au or call 1300 850 038.
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.