Today we discuss the differences between investors that are 'Ready' and people that are 'Wanting' to invest in property. There are clear differences based on Aaron's experience with the two different kinds.
If you are considering property investment, do you know which group you belong to?
Buyers that are not ready
There are prerequisites to investing in properties other than money. These often include the issue of decoupling, of needing to sell before making a purchase, preparing the loans and other required administrative work. Buyers that are not ready to be an investor would often come without these prerequisites become met.
Even when these requirements are told to the supposed investors, their responses include wanting to view properties, considering the value of new launches, before going ahead to do the necessary. These are signs of people that 'want' to invest but are not ready.
Then we have people that are real investors. They have gotten themselves ready with decoupling being done within 1 week of declaring interest in investment, if these are people that need to sell property before an investment purchase, they take action to move.
These ready investors understand that property investment is a game of numbers.
The key point of an investor mindset is the focus on numbers. These numbers include purchase price, rental yield, property appreciation figures.
Even if property does not look beautiful at viewings, as long as the numbers are correct, investors will view, look at the place then make the offer.
Soon after they take over, they will inform that they are ready to rent it out after minor renovation. At times, it's amazing to see the transformation a previously unkempt unit can go through with a fresh coat of paint and effort put into cleaning.
Based on Aaron's experience when dealing with these investors with a ready mindset, sprucing and cleaning a place up for rental after purchase does not cost that much, especially when renovations are kept to a minimal
What an investor would not do
A ready investor is never interested in paying extra for a beautiful-looking property.
They are not here to find the most beautiful house with countless viewings or to pick a specific location that they prefer.
They look at the numbers if they make sense. If yes, make the offer. Take it or leave it.
They get ready, decoupling or selling where required, then perform the necessary calculations to find undervalued property on platforms like PropertyGuru.
It's purely about the dollars and cents. They have done all the research and do not sweat the small stuff.
Summary & Tips
Of course, there are different attitudes when buying to stay and buying to invest with renting out. Today, we discuss purely buying for investment.
The most obvious differences between a seasoned property investor and a newcomer that 'wants' to invest are:
Ready or not
Not looking at purely numbers
Tips to be an investor: Be Ready, Consider the right things, Be focused, Consider your own holding power as an investor.
It's important to know that the number of cycles required to get gains is not something that happens within 2-3 years, this is where the holding power of the investor comes into play after purchasing the right property.
Understand the difference between being ready to invest and someone that wants to invest in property! Hear the tips from Aaron himself as you start your investment journey in property.