Property investment strategies: Top three tips

Every investor has their own methods for securing a profit. Developing your real estate investment strategy will likely be the result of experience, the contacts you make and the resources you accumulate.

While the path toward success looks a little bit different for everybody, there are a few tips that can apply to most property investment strategies and may even help you to avoid some of the common pitfalls many investors fall into.

1)    Find your niche.

There is a reason that specialisation has become the primary method for development. Take manufacturing as an example. When people focus on enhancing their skills in one particular area, they become faster and more efficient, creating a smoother operation and increasing the value of their expertise.

In the realm of real estate, concentrating on one type of property in a certain region will help you to develop a professional network, hone planning and budgeting skills, as well as recognise lucrative investment opportunities. Eventually you could establish yourself as the go-to person for a particular category of buyer.

2)    Get better with numbers.

Sure, mathematics may not have been your favourite subject in school and property related figures can be confusing. But if you think about the financial stakes of miscalculating, you would be well-served to fine tune those skills.

Eventually you will likely want to hire an accountant but when you are just getting started, it is best to learn about all of the associated costs of investment and how much you spend and where. Knowing how to do your taxes properly and what can be deducted when it’s time to file will also aid you in maximising your profits.

3)    Find a balance between doing too little and risky business.

Real estate investment is not a get-rich-quick strategy. Slow and steady will win the race, but you have to remember to get in the game.

Staying on the sidelines waiting for the perfect moment to enter the market will see you waiting for a long time. However, you still must make smart and calculated decisions once you are there.

Find your balance between watching from afar and managing risk.

By Steve McKnight

Steve McKnight, the founder of PropertyInvesting.com, is a respected property investing authority as well as Australia's #1 best-selling business author.