Keep in mind that there is a very cute graphic called “The evolution of man”. It follows the gradual emergence of our species from shouldered simian to majestic, majestically-upright Homo sapiens.
I took a look at this picture on a regular basis and wondered how this Darwinist theory really applies to all kinds of elements of life … including reversals.
I thought it was time for someone to talk about investor evolution. How about me, with their tongue firmly on my cheeks?
By the way, in order to enjoy all the power of what I offer, you should read this blog in your head with the voice of David Attenborough …
And it starts …
First-time investors have similar needs. They are enthusiastic, enthusiastic, playful, eager to learn quickly and become part of the group.
Beginners are generally inexperienced and require guidance and understanding from experienced members of the community.
The first-timer requires a quick initial step in the property jungle.
These new entrants should regularly monitor their financial position and require them to establish their qualifications as trusted lenders before moving to the hierarchy.
When it comes to properties, it shouldn’t be too complicated. A well-placed unit or home with a strong foundation of potential tenants and above-average yields, and the best environment with great long-term benefits are a must.
Rental income must be strong to enable immediate income control. Farms that have the opportunity to increase value through refurbishment and small future developments are also always helpful.
Come out from the trees
Investors will want to be more adventurous as they graduate from this first participation.
Armed with hands-on knowledge of how to find, negotiate, secure and retain the first investment, second real estate buyers seek to replicate their success. They can stay close to their comfort zone and choose characteristics similar to the first, but all aim to double or triple the results.
Their position in the currently established investment glossary occupies an exciting space in the sector where the possibilities seem endless.
Straightening up
With some careers in control, investors will want to start looking for more adventures in their assets and get bricks and mortar in bigger potential turns.
These are properties that can be a little imaginative and bring impressive amounts of money. Expect this experienced species to look for larger blocks with the potential for long-term redevelopment, or units in small complexes where total floor space is not fully utilized. These experienced investors often have clear financial advantages over young and inexperienced investors. They have fought for their financial advantage, and so that the winner can now choose from the most fruitful real estate options.
Leading the pack
Given that they have spent years overcoming the subtle differences and barriers of basic real estate investment, the next investor’s genome gets dirty and leads to success that others can follow. Willing to pave the way.
Small-scale development projects are included in the scope to acquire skills in block division, speculative housing projects, and even single-family and urban projects.
The smartest and most well-planned of them were purchased wisely in the first part of the investment journey. For these visionary investors, looking back at the first well-bought shareholders gives us a development outlook that they could now turn into revenue.
These kings and queens of the real estate jungle also seek new financial boundaries to help overcome the pitfalls of digging up development funds, based on an already established symbiotic relationship with mortgage brokers.
Species Crossover
Perhaps the most exciting step for investors is to break away from the current community and step into complex, profitable areas that go beyond simple living spaces.
These investors often start with a simple industrial hut and try to imprint their brand, but if the money allows, they can grow into larger office or business transactions.
For some, it is impossible to say goodbye to the sector in which they have served so well. Therefore, some people may compromise on advanced housing options and look for a block of apartments or even decide on a joint venture to acquire a multi-level unit scheme.
They can even choose to experiment with the structure using funds from pensions or family trust structures to maximize results.
While traveling, investors use their portfolios to develop real estate, but always keep long-term in mind.
The best investors support the growth of the entire community and provide examples of success that others can follow.
For more information please check our property investment process or call us at 1300 943 232 to book a free consultation call.