When it comes to achieving anything in life, having a set of goals to drive you can really make all the difference. For a goal to be effective, however, it needs to have certain characteristics. As long as it does, you can be sure that you are much more likely to reach it. The purpose of goals in property investing is that it keeps you on your toes. You are much more likely to continually build your profit and your portfolio, and you will learn a lot more along the way as a result. But what should these goals look like, and what kind of goals should you ultimately be aiming for? In this post, we are going to take a look at answering both of these vital questions, so that you can expect to see much more from your investments in the coming years.
What Does A Good Goal Look Like?
Before we get into the specifics of what kind of goals property investors should seek to attain, we will first think more closely about what characteristics good goals have. With the right characteristics, a goal is much more likely to be attainable, and to teach you something along the way, so it is worth knowing more about this topic. As it happens, there are a few key elements which many goals do need to have in order to really be truly and fully effective.
One characteristic which you can’t really overlook is that a goal should be as simple as possible. Simplicity here does not mean that it is not a complex issue, just that the way the goal is defined is relatively straightforward. In other words, you should be able to express what the goal is in a basic sentence. If you can’t do that, it is likely that it is too diffuse, and won’t really get you anywhere. If you have a goal which does not seem to be simple enough, you might consider stripping it down a little. In some cases, separating it into a few different goals is a more logical approach to take, but it all depends on the mission in question.
Simplicity helps to make the goal clearer to comprehend, which might be considered a characteristic in its own right. Clarity is what ensures that your goal can be carried out easily, as it shows that you truly understand what the goal actually is. In a way, all of these characteristics are attempts to reach a state of clarity within those goals.
In order to achieve any goal, you need to have a strong idea of what actually constitutes achieving it. In other words, you should have clear criteria for the end result of the goal. Another way of putting this is that a goal should be concrete in its expectation of what you are hoping to achieve. It is much better to say that you would like to make a profit of a certain number, than to say you would like to simply make more profit. So when you are formulating your own goals, be sure to specify what the end point actually is.
Another powerful way to give your goals a little more chance of success is to ensure that they are time-oriented. As long as you have a specific time frame within which you hope to achieve the goal, you can be more certain of whether or not you have actually reached it. This is clearly important for the sake of clarity – but it also ensures that you are more likely to actually go ahead and reach for that goal. This is what most good characteristics do – they both make the goal more concrete and concise, and put the fire behind you to go and get them.
We now know exactly what a good goal should look like, but what about the specific goals of property investors? What should you actually be aiming for?
Arguably one of the most common types of goal that any investor aims for is an increase in profit. After all, what is the point of investing if not to make as much profit as possible? But setting such a goal can often be surprisingly difficult to get right. Bearing in mind the above characteristics, how can you expect to set a profit-based goal for your investment portfolio?
The best way is to bear in mind primarily the characteristic of time-bound goals. You want to be able to make a certain profit by a certain time, and that is easily the best way of ensuring that you make more and more profit. The real difficulty here is in figuring out how much profit you should expect to make, and in what kind of time frame. Nobody can really answer this for you, as it all depends on your situation, and there are so many variables to consider. But you can do a number of things to ensure that you are more likely to reach that profit goal.
One of the main revenues of income for property investors is rental income. So if you want to make more of a profit, generally the best way is to ensure that you are charging enough rent. You don’t want to be a miser of a landlord, but you do want to make as much money as possible, so this is worth looking at. Similarly, the other most effective way of making more money is to learn how to be more effective at waiting for the right time to buy and sell. Paying attention to the markets and selling your property on at the right time should really make a huge difference to how much profit you are seeing coming in.
Profit is clearly important to any property investor, so this is goal you will not want to ignore or avoid. However, it is far from being the only worthwhile goal in investment.
Another common type of goal is to want to expand your portfolio. When you start out in your investment, you will only have one property – unless you are fortunate enough to have plenty of capital behind you. But as you continue onwards in your investment, you want to try and gain more and more properties along the way. This will ensure that you are able to continue growing profits at the same time, and is another main goal to always try and achieve.
The question of how to actually grow your portfolio is often a tricky one. One of the best things you can possibly do on this front however is to find some professional assistance. You would be amazed at what the help of a property management company could do for your investment growth and portfolio expansion. They will often have knowhow which you simply don’t have, given the much more experience they generally have behind them. It is well worth making the most of such help, but you should also constantly be thinking of ways of growing your portfolio yourself. Get this right, and it will make a world of difference to how quickly you see better and better profits.
For some investors, it is much less about making a profit or expanding than it is about finding and holding on to decent property. If you are someone for whom the love of the property itself is what matters, then you might well be concerned primarily with the idea of finding properties which really appeal to you. In this case, you might formulate it as a goal in terms of finding a certain number of fantastic properties for you to have in your portfolio.
For some, it is more about renovating and building up old properties, bringing out the beauty in those places. But don’t be mistaken: doing so is still a viable way of making decent profit in the long run, and is essential for anyone who wants to be successful in property investment. If you fall into this category, all you need to do is follow your nose and see where you feel you are led to.
Another goal which you might want to consider is less about you, and more about your tenants. If you are going to be making money by renting out your property, you will find that it is essential to work hard to be the best landlord you can be. Everyone has a slightly different idea of what a good landlord is like, but there are some basic elements which most people will agree on.
For a start, you want to make sure you give the tenant space to be left alone in their property – this ensures that they do not feel hounded by you. You will also be sure to be responsible for anything that needs fixing up or which goes wrong in the property, and to do so as quickly as possible. The better a landlord you are, the more likely your tenants are happy to pay the rent.
Get these goals in line, and you will be well on your way to being a better investor.