For many people that consistently make money in property, or consistently keep their weight at their ideal weight it seems easy.You may not immediatel...
For many people that consistently make money in property,
or consistently keep their weight at their ideal weight it seems easy.
You may not immediately see the correlation between the two, but there is a similar pattern to success in both. Both ways to succeed are relatively straightforward and yet most people get it wrong.
If we take weight control first of all – over half of all Brits are overweight or obese and dieting books are the biggest sellers in the world. And yet almost everyone knows what it takes – consume less calories and burn off a certain amount each day. Basically don’t eat more than you need each day, burn off as much as you can by exercising appropriately each week – easy eh?
And yet, over half of us in Britain can’t manage this.
Why?
Generally because of a lack of discipline – rather than following some sensible consistent good habits which will bring strong consistent results, people look for the latest fad diets, quick fixes, and don’t have the discipline to see it through. Instead, even making slight changes each day and week will make the difference - for instance if you start swimming twice a week, and stop having that large latte from Starbucks every week day – you will over 3 months see a big difference as you are reducing your calories significantly and burning more off. But generally people struggle either with discipline or willpower.
See the comparisons with property?
How a lack of discipline can prevent you realizing the results you desire?
Understanding numbers, buying in the right areas and following basic rules is key. Putting a sensible strategy together, not being influenced by media or outside influences and short term issues, is crucial to mid term success.
The investors I know that have done best in property have kept to fairly simple guidelines and plans, and followed it through over a number of years.
Look at the Wilson’s in Kent – owning over 700 buy to lets by following a pattern and strategy that is working well for them and buying 1 every week.
My portfolio follows a similar pattern each year – allowing it to grow each year – my average property is currently valued at £87,000 and I have an average of 20% equity in each property – although I have invested further afield over time – I have stuck to similar guidelines each year and seen strong growth.
Most successful investors have followed a clear strategy and done very well by understanding the numbers from day one, using leverage to accelerate their gains, and keeping to a sensible strategy managing cashflow as they go along.
Unfortunately for many that is almost too sensible and boring – so they look for short cuts. They fall for sales pitches, or fail to understand the basics first before investing – and fail to keep to a disciplined path – then after 6-12 months they wonder why have not made millions, but more seriously, can have lost money by not investing in sensible good value properties.
Look at investing in property with sensible goals, well thought out – and have a minimum of a 3 year plan – and you can see phenomenal results. Once you have all these good habits in place it becomes the natural way to act, rather than a hassle or hard work – and the results continue to improve over time.
Good discipline and repeating good habits is just as important in property investing as weight control – remember that next time you fancy a Mars bar, or an exotic place in the Sun.
