Owning an empire – for some, it’s the stuff of dreams… for others, an impressive property portfolio is a genuine goal or even a reality. One thing still rings true. Every property mogul started somewhere…
Property investment may appear a set and forget path to wealth. The professionals make it look easy. Just put some money into an asset, let it appreciate over time and enjoy the security, prosperity and certainty for the future. The road to success sounds simple.
That’s all well and good in principle but the realities of course are a little more complex. Even a seasoned investor has a process to follow when lining up the next opportunity. Weighing up when, where and how to invest can get a touch overwhelming. Location, price, income potential, vacancy rates and insurance are just a few pre-purchase considerations and it doesn’t stop there. After settlement, attention turns to how the property will be managed, budgeting for maintenance and dealing with the occasional unforeseen event.
There is a lot to take in, and it isn’t made easier when the unexpected happens. Keeping focused on the long-term goals for an investment are important and sometimes the biggest motivation is inspiration.
To stay on the right path, here are a few words of wisdom for aspirational landlords
- “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt, former US President.
- “In my experience, in the real estate business past success stories are generally not applicable to new situations. We must continually reinvent ourselves, responding to changing times with innovative new business models.” – Akira Mori, real estate developer.
- “Buy real estate in areas where the path exists… and buy more real estate where there is no path, but you can create your own.” – David Waronker, Founder of CBD Real Estate Investment.
- “Price is what you pay. Value is what you get.” – Warren Buffett, businessman and philanthropist.
- “Risk comes from not knowing what you’re doing.” – Warren Buffett - businessman and philanthropist.
- “Investing should be like watching paint dry or watching grass grow. If you want excitement… go to Las Vegas.” – Paul Samuelson, economist.
- “Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it.” – Benjamin Graham, economist and professor.
- “Successful investing is about managing risk, not avoiding it.” – Benjamin Graham, economist and professor
- “If you invest nothing, the reward is very little.” – Richelle E. Goodrich, author
- “Landlords grow rich in their sleep.” – John Stuart Mill, philosopher and economist
While property may be a more stable market to grow wealth than others, one thing is certain: No investment is completely without risk. Every successful property investment journey starts with understanding and managing that risk. EBM RentCover offers a range of products for landlords to help protect what is most important to them – their investment.