PROPERTY INVESTMENT STRATEGY - A key requirement for success
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"The proof of an investment strategy is how it performs in bad times, not in good times" |
"The proof of an investment strategy is how it performs in bad times, not in good times"
Strategy is key, whether you are planning a war, an election campaign or buying a property. There is no such thing as a generic, one-size-fits-all strategy. We are all different, have different goals, ambitions, needs and tolerances to risk.
What does strategy mean?
“A strategy is a declaration of intent, defining where you want to be in the long term.” An example of strategy statements are:
- "To buy undervalued properties from distressed sellers, add value and then re-finance, leaving none, or little original capital invested"
- "To buy "off plan" geared investments in rapidly rising overseas markets for capital growth."
- "To invest in property in order to retire in 5 years time."
"Planning what not to do is as vital as planning what to do"
Anon
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It is a statement, not an essay. Not having one, is like driving a car through the woods at night without any lights on.
At Bewarethesharks.com we place a great deal of emphasis right from the start on developing a strategy based on the student’s goals, desires and timeframes and not on ours. There is no secret 'inside track' that will make you millions, strategies are unique to each individuals financial circumstances as well as their psychological profile . Strategy is key, without one an investor has no focus and it is only through focus that one can achieve significant success.
Do you have a strategy and if so, is it suitable for the present and future market conditions? A monkey could have made money in the UK property market in the last few years but the market is getting tougher and it is increasingly important to use a systematic approach. Our courses provide a proven approach that you will use to implement your own strategy for success.
Strategy and planning go hand in hand. Sun Tzu, the famous Chinese military strategist, in "The Art of War" states:
"Conquerors estimate in their temple before the war begins. They consider everything. The defeated also estimate before the war, but they do not consider everything. Estimating completely creates victory. Estimating incompletely causes failures."
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Planning your investments in a way that suits your strategy can enable you to create and maintain a competitive advantage. This idea can be referred to as an ‘inside track’, because it offers you an edge in your property investments – and succeed where others may fail due to inadequate planning.
The ‘inside track’ that your strategy will provide can give you a superior position and enhance the success of your investment plan.
The property investment course has been designed by professional property investors with strong business and City backgrounds who utilise tools and techniques that have been developed over many years, which provide a checklist to ensure that you "consider everything."
We help you to determine your strategy as part of the fundamentals of property investment course. Prior to attending, you will complete a behavioural profile on-line which is analysed by our professional psychologist to produce your bespoke report. We examine what your report means for you during the first hour of the course.
Your strategy will determine the extent of your success in the property investment world whether you invest in the UK or overseas markets. It is a crucial first step for the novice property investor and something that an experienced investor monitors and reviews in light of its performance. Strategy dictates the Why, When, Where and How of property investment.
By choosing the right strategy for your investment needs, you are indeed aiming for the ‘inside track’ in your property investments.
Latest Property Investment Strategy News
Below is a very short extract from a 3 page discussion in the January 2006 edition of the leading property investment journal, Property investment news
Investors Round-Table 2006 Investment Strategy
Three very experienced private property investors; Nick Dare, Chris Howard and Dominic Farrell discuss 'investment strategy in 2006' with Richard Bowser editor of Property investment news
"Richard: So many people look at locations ( UK and Overseas) and "discounts" - without any proper strategy or a specific timeframe in mind before they hand over their hard earned cash ....so what should they be considering and researching for 2006.
Dominic: This is a very good question and highlights why so many people “fail” or do not achieve the very best results in property investing. They do not have a clearly defined strategy which is tailored to their own investor profile and long term goals. They do not have a focus, but use a scatter gun approach. This in itself is always a risky strategy!
The risk profile of an investment strategy changes dramatically when you add in a time factor. If you have a 5 year timeframe, then the risks involved are considerably greater than over a 25 year timeframe. Operating without a timeframe in mind therefore exposes the investor as it renders them unable to assess the risks involved. Time is a constraint which pushes your strategy further up to the right on the risk/reward graph.
So in 2006, people should first and foremost develop and define a property investment strategy. If you have one already, then you should review it and make any adjustments that you feel are necessary. Ask yourself - "Has anything changed since I first formulated this strategy?
Do what you are good at, not what the marketing companies tell you should be doing. If you have a talent for developing, then continue to do so. If the thought of “off plan” in Latvia turns you cold, then do not do it." |
The full article is published in the articles section of the website in February 2006
To view our articles, please click here |
