If you’re dreaming of owning your first home, here are some lessons from the frontline of property investment that could help you build your personal wealth for the next decade or two.
Successful property investors all apply a remarkably similar methodology for buying property and following these lessons can add hundreds of thousands of dollars to your strategy.
The first rule is to let go of your emotions: Don’t fall in love with a property. Instead, look at each one property as a potential investment; not as somewhere to live, or the home where you’ll raise a family.
Only after a property has met the financial and investment criteria that indicate it’s a purchase that will help you meet the financial goals in your life, can you consider the issue of love!
Below are some additional inspiring behaviours by real estate investors that you’ll find beneficial as a first-time buyer.
- Think long-term so you can achieve your financial goals.
- Use your head, not your heart. Don’t let emotion conquer all.
- Be organised, calculated and act strategically. You’ll be amazed at how this boosts your confidence in your own decision-making.
- Research the market thoroughly. Know the value of the property and don’t pay over the odds.
- Be ready with the cash. Don’t go home-hunting without a loan pre-approved. You need to work to a budget – just as an investor does – and you are likely to need to move quickly in the current market.
- Mitigate your risk. What happens if you have a financial hiccup in your life? That sounds dramatic, but if you have a plan you’ll be more confident about your purchase.
- Stay alert to opportunity. Climbing the property ladder is a smart play. If you don’t want to move, consider potential investments and become a landlord.