It is the start of a new year and you may well be on your break from work commitments as you read this. With a bit more time on your hands and hopefully in a rested and less stressed environment, this is a wonderful opportunity to think about the higher aspects of your investments. Just why are you investing in property and are you on track to meet your goals?
As a rental property owner I hope you would take pride in providing a roof over your tenant’s heads and providing one of the basic human needs of shelter. Part of that pride means providing a good home that is well maintained and good service to your tenant when things need doing. While this customer focus is essential in being a good accommodation provider, it probably isn’t the prime reason that you are investing in property.
At least once a year it is good to consider your real motivations for buying rental property and during your break at the start of the year is probably the best time to do this.
In a business plan, the section closest to this type of thinking is the Vision Statement where the business describes a future state or aspiration. The Vision Statement can be emotive and a source of inspiration that motivates individuals to strive for what they want.
Why you are investing will be very personal. It needs to be personal because it provides the reason to get on with aspects of property investment that you may rather not do. It is extremely important as you have many choices in life. You can sit on the couch or you can go and look at property to invest in. Knowing why you are investing in property is your motivation to choose getting off the couch.
If you are investing as a couple, why you are investing may or may not necessarily be the same for you as it is for your partner. Your investment goals and strategies need to be aligned, but your reason for investing doesn’t necessarily have to.
You may be investing for security and independence in your old age, but your partner could be investing to provide a legacy for children. As long as your investment goals and timeframes to achieve your goals are aligned with your reason to invest in property, then your motivations can be quite separate.
Problems can occur, however, when your different reasons for investing in property lead to different goals and strategies. One of you may want to retire at 40 to travel around the world while the other wants to retire later when the kids leave home with enough money to provide them with a freehold home each.
This is where a nice relaxed conversation over a drink or two can help align visions, goals and strategies.
Discussions with friends can also provide options for a lifestyle you hadn’t thought of before and the inspiration to make it happen. Meeting up with likeminded friends from Property Investor Associations is a great way to expand your thinking about what can be achieved and when.
So all the best with the New Year. I hope you enjoy thinking about your future and how you can use property to enjoy the journey on the way.