Too often, real estate investors or those looking to dive into property investing get bogged down by data overload. There’s a fine line—respecting and considering data is crucial, but as an investor, your role is to sift through and find what’s truly valuable.
And here’s where many investors trip up.
First, they speculate on future trends based purely on historical data—more akin to gambling than investing.
Second, they struggle to interpret data and understand how it should influence their decisions. Why?
Because they don’t have a plan! No goals. Why bother investing in property? Simply stating “to create wealth” is just not going to cut the mustard. Specific goal setting people, that is the key that will unlock all the rest of it.
Case in point: the data attached says SA was the top-performing economy last quarter, with VIC in third. So what?
Does this mean better investment returns in SA over VIC? Not necessarily. My goal from day 1 is to deploy my limited savings and grow that capital substantially investing in real estate. More specifically, I wanted to turn my net worth from $15,000 into $1 million in 7 to 10 years.
I’ve been investing in VIC for the past 7 years consistently. I experienced boom markets, down markets, stagnate markets, low interest rates, high interest rates, I went through everything from APRA regulations to COVID-19 and so on and so on. Through it all, not once would I have benefited more from holding onto properties instead of strategically adding value and selling them.
If I had clung to my first property purchased seven years ago in Clyde North, rather than selling after enhancing its value, I’d have made less today.
Not even in Clyde North has anything really “doubled” in the last seven years. Even if it somehow had “doubled”, my returns have been much greater because I am reinvesting from a higher capital base every time.
This approach has prevented me from missing out on compounding my returns year on year, as I would have otherwise exhausted my borrowing capacity and still been stuck in a job, paying off the costs of negative gearing. Nope. Terrible deal. No thank you!
I buy, add value, and sell. Every time. Over the last seven years, my capital has grown substantially thanks to this strategy. I set a goal, then select the strategy that will achieve that goal. I then source and interpret the relevant data and information, finally, I execute.
I buy, add value, and sell, because it aligns with my goals.
Next time you’re faced with graphs, data analysis, and market trends, ask yourself: So what? How relevant is this to my goals, strategy, and execution?
If you need more clarity on your property investing goals, feel free to email me or reach via the contact us tab.
