Have you ever heard that old saying, “judge a person by the company they keep”? While this usually refers to people sharing similar personality traits to their friends, it also rings true for property investors. The people you surround yourself with can have a big impact on the property investment decisions you make.
Here we look at how this works and why this is the case. As part of this, we will look at the type of people successful property investors need in their life. We will also explore who you need to be wary of and the people who could be setting you back.
The property market is a rather unique thing. While most people have some interest in it, very few take the time to properly understand how it works. And even fewer actively keep across the latest movements and any developing trends.
Similarly, while over two million Australians are investors, the vast majority of these people only own one property. As such, they may have a good understanding of what it takes to buy an investment property. But they will not have a deep understanding of different investment strategies or how to build a high-performing portfolio.
This means that, when you are learning about investing, you need to carefully manage where you get your information from. Because, while most people may not fully understand the property market or investing process, many will happily offer their advice. And although this advice will usually be well intentioned, that means nothing if it is not well informed.
If you want to be a successful property investor, the best people to spend time with are other successful property investors. These will be people who share your passion, understand your motivations, support your decisions, and encourage your progress. They should also be people who you can learn from and discuss your ideas and plans with.
As successful property investors are a fairly rare breed, you may need to actively seek these people out. For example, if you are new to property investing, you may look to engage an experienced investor as a mentor. Or you could see if anyone in your existing support network knows a successful investor you could be introduced to.
Alternatively, many successful property investors choose to surround themselves with teams of experts who can support their investment journey. From mortgage brokers and solicitors to buyers agents and market analysts, there are many professionals who fall into this category. And, often, these experts will have their own contacts that they know and trust, and can connect you with.
While some people can help you grow as a property investor, others can slow your progress and limit your success. They will usually do this by providing unfounded (and often unsolicited) advice or undermining your confidence in your decision making. Even worse, they will often be completely unaware that they are having this impact on you.
As such, you should be wary of discussing your investment plans with anyone that does not have significant property experience. You should also be sceptical about taking any advice from anyone who does not own their own investment properties. And you should give a particularly wide berth to anyone that claims you “get rich quick” through property investing.
If you are just starting your property investment journey and want to maximise your chances of success, contact Search Party Property. Our team are truly passionate about property and are experts in supporting investors to successfully build profitable portfolios. For more information on how we can help you achieve your investment goals, book your free investor readiness session today.