Investment Property is a Business. All successful property investors have a “recipe” or business plan that they follow and review over time. There is an old saying “Businesses never Plan to fail, they fail to Plan”. Some key issues include:
- What is your goal and over what period of time do you plan to be a Property Investor? Clarification of this goal and the period over which you plan to achieve it will help you to calculate the necessary steps along the way to achieving your goal.
- What are your core skills and competencies and what are you not good at?
- How much spare time do you have?Investments and businesses generally share 2 common and simple ingredients – the more time and effort invested, the better quality the return.
- What type of tenants do you want to deal with?The quality of your property usually determines the quality of your tenants and the quality of your tenants will always affect the return on your business.Please visit www.tenancy.govt.nz for more information.
- You need a good Team of SpecialistsAll successful businesses operate using a Team of Specialists. You will need to select a good team of the following Specialists to help you achieve your goals:Solicitor, Accountant, Valuer – Land and Buildings, Chattels Valuer, Property Manager, Builders and other Trades people & an excellent Mortgage Broker
Your mind set should become that of a Businessperson with a defined Business Plan.