Investing in property is a big undertaking that’s enough to make anyone anxious.
But for those who are able to push past their fear and anxiety, it can prove to be a worthwhile endeavour to pursue.
Everyone knows investing in property is a great way to create wealth. In fact, real estate is widely regarded as a safe haven — a secure way to invest and grow one’s money.
But why isn’t everyone a property investor just yet?
The answer is simple. It’s because there’s a lot of anxiety that comes with building a property portfolio.
After all, real estate is generally a long game. You could spend years and invest good money in growing your portfolio without really knowing if it will truly help you create the life you want.
No one wants to invest significant time and resources just to see minimal gains, right? We all want a life of freedom, choice, and abundance. But it would seem that there’s no way to tell if we could indeed achieve those things by playing the long property game.
This uncertainty has deterred many people from investing in property. They think it’s not worth it to sit with a constant buzz of anxiety and wait to see if their property investing decisions today would create the future they truly desire.
But what if I told you there are some things you can do to overcome this anxiety? What if there was a way to invest in property with a little more certainty that whatever you do today will set you up for the kind of life you want?
Would that give you even just a bit more courage to start building your property portfolio today?
Well, if you’re interested to find out how you could inject more certainty into property investing, keep reading.
The 4 Steps
If you want to invest in property but don’t want the high levels of anxiety that normally go with it, here is a four-step process you can follow:
Step #1: Realise it’s normal for plans to change
They say the only constant thing in this world is change. And that is true. Just look at the past few years and how even the biggest business in the world had to shift their growth strategies due to the global pandemic.
Even Meta, a company that is well-resourced with lots of advisers and capabilities to plan ahead, had to do the largest tech layoff in recent history. This is the result of an ever-shifting economic environment.
And the earlier you accept that it’s normal for plans to change, the better you can cope with the ever-changing landscape of real estate.
This is the first thing that you have to realise: just because things are not going according to plan doesn’t mean everything’s going downhill. Your plan just needs to be as dynamic as the environment around you.
That brings us to step number two:
Step #2: Be flexible enough to reassess your goals, strategies, and growth plan along the way
There’s no use sticking to a plan or strategy that no longer makes sense. Likewise, there’s no use getting anxious over foiled plans when you could simply make new ones.
You’ve got to be flexible enough to reassess your goals, strategies, and growth plan the moment they stop making sense in your current environment.
Better yet, continuously reevaluate where you’re at and what your strategy is, may it be monthly, quarterly, or annually. This will help you stay on top of any changes that you need to adapt to as you chug along your investing journey.
Step #3: Prepare a spreadsheet that will give you optics on what your portfolio would look like in the future
To help you with your regular planning and strategy reevaluation, you’re going to need a spreadsheet that contains all your portfolio numbers. This would include the following:
- The purchase prices for all your properties
- Your expected yields over a certain period of time
- Your current and projected cash flow
- The average compounding growth rate you’re looking at for each property
- All future projections you have for your properties
Now, here’s where things get tricky.
Some property investors start with a very general spreadsheet reflecting a very general plan. For example, they’ll go: “If I buy this property for $500,000 and if it compounds at the 30-year average growth rate of 6.8%, then I’m going to be rich in 20 years.”
That’s a great starting plan, for sure. But if you leave it at that for the next 20 years, you might be in for a big surprise by the end of it.
For starters, you might find out that the average growth rate you were hoping for didn’t materialise. That would mean you basically lay in wait for two decades for something that would never happen.
So, it’s good to have a spreadsheet to get some optics on what your portfolio would look like in the future. But remember, it’s not the final step you’ve got to take to secure your portfolio’s growth.
Step #4: Make it an adjustable spreadsheet to account for possible changes (may it be in your financial situation, the economy, etc)
This is how you could instantly account for any shifts in the economy—or even your financial situation—and have it reflect on your future projections in real time.
Now, the problem is that creating this adjustable spreadsheet requires some technical knowledge about software development. This is something that not many of us have the time—or any other practical reason—to learn.
It’s why we’ve taken it upon ourselves to develop a robust growth planning tool that does all that hard work for our clients.
The Property Portfolio Growth Plan is the result of a tonne of investment in cash, time, and science. And we’re proud of the way it has removed the thick layer of anxiety that usually clouds the aspiring investor’s mind.
Simply put, this tool allows users to make quick decisions to reallocate their capital or shift their entire strategies based on changes in interest rates and other environmental factors.
Say Goodbye to Property Investment Anxiety
It is with hope and optimism that we continuously develop the Property Portfolio Growth Plan in order to help more people get over their investing anxiety. And to the same end, we’ve also laid down other tips that could add some certainty to any property investing strategy.
So, if you’ve always wanted to be a property investor but you just can’t seem to overcome your fear of the uncertain…
You now know the four steps you need to take to finally take the leap and do it.