Only Fools Rush In:
Setting yourself up with a plan is certainly a smart thing to do. Even after all these years of property investing, I still do.
It’s a mistake to rush in, and only fools rush into buying properties. It’s almost like they get all excited and revved up and then just jump into the market. But they could be jumping straight towards a cliff.
I think that this is a key ingredient to a lot of failures. When it comes to property investing, there’s little respect for having a strategy and a plan and being really ready before getting started in the market.
Prepare for Success
The recipe to prepare for success:
- What’s your capacity?
- How much money can you borrow?
- What would the dynamics of that property look like?
- What should the performance of it look like?
- Is it going to help you achieve your goals, or is it going to steal away your lifestyle?
You need to understand this as the framework, the recipe of what you need to put together as ingredients to make sure that you’re doing something really positive for your family.
Square Peg Square Hole
When you understand this, you will know that there is a buying recipe that is shaped precisely to the profile of properties that you should be targeting. I call this a square peg square hole.
Once you know:-
- The price point;
- The affordability factors of owning property;
- The fundamental things that property needs to deliver the yield;
- What the impacts can be on your pocket at the end of each week;
- And a whole range of other ingredients about how you pick a location, and
- How you pick the right property talk when you have that plan put together;
You will know how to perfectly go out and select the ideal square peg for that square hole scenario, and you’ll get loans easier.
You will be much more comfortable to hold those properties and they will perform better because you’ve prepared yourself well and you’re now jumping into the market in a really calculated way.