To develop a personal strategy, you first need to be clear about what you are aiming to achieve. In property investing, your main choice is between maximum income at one extreme and maximum capital growth at the other. In practice, most people opt for a balance between the two, but it is vital to have a view about what that balance looks like.
You must also assess your attitude to risk; after all, text books often define profit as the reward for taking a (calculated) risk. In his famous book “Retire Young Retire Rich”, the “Rich Dad, Poor Dad” author Robert Kiyosaki talks at length about risk, explaining that the greatest risk is to constantly seek security. The key is to learn to manage risk, not avoid it.
When devising a personal strategy it is essential to be clear about the actions you will take in every conceivable situation. Ask yourself “what could possibly go wrong?” then plan out your response to each event. If x happens, I will take y action. If interest rates increase to the extent that I can no longer cover my mortgage payments from rent, I will do the following … !
It is for this reason that Viceroy Invest offers to work with you to devise your personal property plan before you commit to buying any property. This consists of the following steps:
- Initial finance to ensure you are ready to proceed
- Discuss your aims. Find out why you want to invest and what you would like to achieve from your investment
- Property Portfolio. Produce a 1 – 5 year plan, at your pace, which is structured to achieve your aims
- Assign you a Personal Property Consultant who will work with you to achieve your aims.
This is all about helping you to manage your risk within the parameters you are comfortable with.
“The rich don’t work for money; they have money work for them”. Robert Kiyosaki.