One of the majority of investments is that, despite the application of strategic planning and risk mitigation, better-designed plans are likely to derail at some point.

According to the 2016 census, about 71% (1.49 million) of the 2,097,392 Australians who invested in real estate had only one stake, while building a life-changing portfolio of more than six. There was only 1%, or 19,967 people-from the pool.

Most buyers start investing with the intention of owning more assets, but process retreat usually causes them to be determined. They can’t see the problem, so they decide it’s too difficult and give up.

All investors are experiencing obstacles that can upset their journey. But think of it as an opportunity to learn and progress on these challenges, rather than hindering your plans.

This is a six-point strategy to keep all investors from being overwhelmed by the problem and throwing towels and never giving up.

1. Step-by-step strategy

This part of the process starts early. Once you have defined your goals and desires and set up a general course to help you from A to B, it’s time to get started.

Under the guidance of an experienced expert, apply your current knowledge and take a closer look at what your investment journey will look like. Think about the amount and type of investment you will need over a period of time to make your dreams come true.
By dividing the large vehicle into smaller achievable steps, you are ready to tackle the problem.

Keep in mind that, like a bad tenant, a pedestrian accident is a single stumbling block, not a complete derailment.

2. Flexibility is the key

Keep in mind that defining a plan helps determine the path to success, but agile investors tend to succeed.
Those who can escape the plan without stress when needed can seize unexpected opportunities. Similarly, a flexible person can find a solution to a problem that can hurt others.

Suppose your property is empty for too long. I think it is necessary to soften the rent and lower the price. If so, do it. Don’t hesitate. Have you had a bad tenant series in the last two years? Your real estate manager may not be doing his job, so be prepared to change.

Get ready to cut, run, and switch to be stronger than ever.

3. Trust the buffer

Ownership and maintenance and investment costs are not linear. One month it’s full of cash and the next month it runs out of money. The key to survival is the shock absorber.

Make sure you have the extra money in your cleaning facility to accommodate changes in cash flow. This means that you need to save a little on each cycle to deal with the unexpected.

It is a gift to counter in the event of an emergency. Suppose in the summer, the hot water supply system fails in the same week as the air conditioner. You can safely use the buffer if you know that it will be replenished as the year progresses, as it is allowed in the annual cash flow calculation.

Like most real estate investments, it helps eliminate bumps in the long run.

4. Zoom approach to common sense

To deal with unexpected forces, you need a “zoom in, zoom out, zoom in” process.

Suppose you buy real estate and prepare for the next year’s maintenance costs. Everything works well until six months after the undetectable tree roots block the drainage point and the subsequent floods cost a considerable amount of money. what are you going to do? Expected costs this year will soon be included in one collection.

The first step is to zoom in to see the problem. The important thing is not to be overwhelmed at this point, although it’s not always easy. Your first reaction may be to sell! Suddenly, this little problem gives too much credit to trampled people, and at this point, many first-time investors give up their property dreams.

My advice here is to understand that your reaction and reaction is normal, but it can be overcome. At this point, “recognize” the problem and don’t respond too quickly.

The next step is not intuitive. We recommend that you “leave” now. Review long-term goals and strategies. See where you are on your journey and think about how this property fits into your plan. Isn’t the extra cost a small setback on a long winding road during a 10-15 year ownership cycle? Isn’t this problem temporary? Isn’t the purchase of this property strategic for capital gains and future development potential? Isn’t it worth it?

Now “zoom in” again to consider your options. Think realistically about the degree of recovery. Does Your Financial Buffer Help You? Do you still need strategic help from your adviser to develop ways to cover these costs in the short term so that you can still enjoy long-term payments?

We have found that most obstacles can be overcome if you have the habit of recognizing problems (zooming in), seeing goals (zooming out), and evaluating options (zooming in).

5. Regular reassessment

If you want to avoid the unexpected … I’m looking forward to it!

Many investors do not regularly review their portfolios and financial position. It is important to monitor rent performance, debt levels, income, withdrawals, and long-term expected asset returns.

Don’t be lazy. Sticking to these factors will increase your chances of maintaining your course without being surprised.

6. Check your way of thinking

Finally, let’s review the way investors think. Remember that you are one of the few Australians planning a comfortable future where you can enjoy the mess of hard work. It’s a marathon effort and there are difficult times. Take some time to breathe, reassess and move on.

Fortunately, in my experience, most investors feel the right way to overcome the challenges. It requires effort, patience, and support from the people around you.

Don’t stay on the thin side of the statistics. Run the entire real estate race and join the ranks of the winners. Visit www.equimaxpropertygroup.com.au or call us at 1300 943 232 to book a free consultation call.