Whether you’re a beginning property investor or you’ve got some property under your belt, creating property investment goals is something every investor ought to do. You want a road map and game plan for the short and long-term and you want a solid game plan. This can be the difference between playing small or large when it comes to building an investment portfolio over the years.
Here are some great tips I’ve learned over the years regarding setting smart and effective property investment goals:
- Paint a portrait of where you are right now
Identify where you are right now in terms of current annual salary, total amount of savings, amount of debt, and so on. Get serious and honest about where you are financially right now. Plenty of investors want to accomplish certain investment goals, but they don’t take the time to do the math and honestly look at their financial portrait. You want to know where you stand financially so you know what you can afford investment-wise.
- Save regularly for maintenance
When you have investments properties, they will require maintenance periodically. A great way to be on top of this is to save a certain amount monthly that will go toward maintenance on your properties. This way you’ll already have the money and be prepared.
- Have a timeline
Create a timeline regarding how many properties you’d like to acquire and/or how long you’d like to hold onto them. You might want to hold them for five years and sell them or you might want to keep them for the long-term. When you create a timeline, you can then create a plan and act accordingly.
If you’re not sure, have a discussion with your mortgage broker or financial adviser. Set your goals and execute the plan accordingly. The process gets easier and tends to take less time each time you purchase a property.
- Write down your plan
Whether you’re investing for tax breaks, leverage, or capital growth, write down your plan and keep it fresh on your mind. Periodically look at it and make and changes necessary to stay in sync with your property investment goals.
- Decide whether to go it alone or find a coach
Purchasing properties can have a lot of hurdles and obstacles that can catch you off guard. Going alone is possible but it can be trickier than you might think. Having the above steps in place is a great start but its hard to stick to your plan when you are the one holding yourself responsible. With a coach you will have someone who is holding you accountable. They can make sure you avoid pitfalls and if anything unexpected happens you will be able ask about the best course of action.
Investing in properties is a wonderful way to build wealth and it can be an exciting endeavor. Surely, you want to start off with a solid road map and action plan, so take the time to evaluate your current situation, continue to educate yourself in the niche, and if you run into any questions, feel free to reach out.