Successful Property Investment
Personality Traits of Successful Property Investors
If asked, most people would probably say that the things someone needs to become a successful property investor are a decent amount of capital in the form of savings and a good credit history. They may also pick out traits like building know-how, an eye for interior design, or ruthless negotiating skills. The majority of people would probably not say, however, that property investors need to display any particular characteristics in terms of their personality. After all, when you are dealing with bricks, mortar and banks, where does personality come in? In fact, to achieve success in the world of property investment, there are several character traits that can prove to be very helpful, if not essential. There is definitely a personality type that is conducive to successful property investment.
Top of the list, you need to be a people-person. This means that you need the ability to strike up conversations easily and persuade people around to your way of thinking. It is very useful to be able to adapt your style of communication depending on who you are talking to. Investors who can switch between cool professionalism in a bank, hard negotiation when discussing price and chatty welcoming ease when showing around potential buyers will go far. As with most things in life, who you know will get you a lot further than what you know. If you are skilled at dealing with people in a manner most appropriate to their personality type or position, you can quickly establish a large network of useful contacts. You will also be able to turn almost any situation to your advantage. Being shrewd, knowing how to read people quickly and respond appropriately, is a great skill for an investor to have, if they want to get the most out of property investment. You will have to deal with many different people, such as estate agent, solicitors, bank managers, contractors, tenants and buyers.
You must have confidence in your investments. If you are afraid to fail, chances are – you will; it will become a self-fulfilling prophecy. An investor who ensures they have contingency plans in place and takes set-backs on the chin will go far. Buying and selling property is a complex process, with many things that can potentially go wrong. Investors need a plan, but equally they need enough confidence to continue smoothly when things fail to go to plan. If they can approach any situation with confidence in their ability to deal with any problems that may arise, chances are they will find solutions and alternative plans spring to mind quickly. Almost any situation can remain more or less stress free when handled with confidence. On the contrary, if it is in your nature to worry about every little detail and you find yourself completely thrown when things don’t go to plan, than property investment is unlikely to be a fruitful option for you to pursue. Even if the investment makes a good return, chances are you will be under constant stress and unable to appreciate the money.
You absolutely must be self-motivated as a property investor. It is not a 9 to 5 job and you never completely switch off from it. You always need to be available when new opportunities arise, as it is often appropriate to act fast. You need to make yourself get up and get out there, looking for new opportunities and increasing your network on a daily basis. You also need to stay on top of property maintenance and any issues that tenants may have if you are a landlord. If you find it hard to motivate yourself to do the things that need to be done and often find yourself procrastinating instead, property investment may not be the best route to take. No one is going to make sure you do what you need to except yourself. Motivation is a key characteristic for successful property investment.
In the world of property investment, the game can change at the drop of a hat. Problems can and do crop up completely unexpectedly, often at incredibly inconvenient times. Opportunities also seem to lend themselves to limited windows that are not always easy to access. Taking a long time to make decision, or constantly second-guessing what might have happened if you had done otherwise are traits that will not get you far in property investment. Failure to act quickly means missing opportunities that present themselves. Second guessing your decisions will only wear you out with stress, because there are so many decisions to make. You need to be adaptable and you need to be able to think quickly and take charge, in order to enjoy success in this field of investment.
Property investments are generally long-term investments and by their very nature they are illiquid. This means that capital tied up in property cannot generally be released quickly or easily. There will be a period of at least month between deciding to part with an asset and the sale actually going ahead. This means you have to be absolutely sure and one hundred percent committed to your investment. If you think you are likely to change your mind after a couple of years or you are not sure you will be able to afford the investment whilst the capital grows, walk away now. Not only do you need to be committed to seeing the investment through, you need to be committed enough to making the most of the investment to put in all necessary time. This is linked to motivation in that no one is going to make this work for you, so you have to be willing to make sacrifices and give your all to ensure the success of your investment.