Let’s take a moment to look at property investment from the buyer’s perspective.
Almost all property sales in Australia occur with the help of an agent. And yet, while sellers almost always have agents looking out for them, acting on their behalf and protecting their interests, most buyers handle the decision to purchase property by themselves. This is especially the case during the vital early stages of developing an investment strategy.
If, as a seller, you have a clear and concise understanding of your goals, your motivation, the current market situation and your best position within it, then great – go get ‘em! But it’s also safe to say, if you do have all those ducks lined up, that you’re also in the minority.
Our business owner Michael recently interviewed leading investment specialist Brett Warren as part of the Michael Pell podcast series.
Brett was a professional football player up until he turned 25. Although he retired young, he learned a lot about the discipline required to be successful not just in the sporting world, but in the business world too.
Brett is in the real estate game these days and he’s helping buyers find the right sellers and properties. During his interview, Brett and Michael both agreed that there are far less agents looking out for the interests of investors than sellers and that it’s essential for investors to look after their interests better.
What’s the #1 question every potential investor should ask themselves?
It’s “WHY?”
When a potential buyer speaks to Brett about investment properties, Brett’s first question is always “Why?”
If you either can’t explain or haven’t explored the reason you want to buy an investment property, then maybe your motivation is pointing you in the wrong direction.
What’s the #2 question every potential investor should ask themselves?
The second question potential investors should be asking themselves is “What are your goals for the next 10 to 15 years?”
Note that we’re not asking about the next 3-5 years – property investment is a long game. Knowing your long term goals further focuses your clarity on what drives you as an investor.
What’s the #3 question every potential investor should ask themselves?
The final question is “Should I do this alone?”
