Sunday, July 23, 2017

The Five Step Plan To Reaching Your Goals

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When you are a teenager, the line between dreams and reality is extremely blurred. We wake up with these outlandish ideas of what we want to achieve and that’s that; we’re going to achieve them. As we get a little bit older, though, that blurred line becomes more and more crystal clear. It’s like someone has taken a photo of it and then used Instagram to make it as sharp as possible. We suddenly realize that writing down our goals on a piece of paper twenty times before bed and then hoping the universe will answer us in our sleep is kind of unlikely. This is especially true when it comes to our property investment dreams.

In property, reaching your goals is less about dreaming and wishing and hoping and praying, and more about making sure your goals are realistic for you. That way you can actually figure out how to go about achieving it.

That is where our little five step process comes in:

Step 1: Have A Goal You Want To Reach
What we mean by setting a goal is determining how much money you want to make - or how much capital you want to be worth - within a certain amount of time. Whether your goal is to go on more luxury holidays, buy a pink pony for your daughter, or drive a custom Lamborghini with the license plate Mack Life is irrelevant, just that you have a goal in place.

Step 2: What Can Your Target Investment Offer
Whatever property you are looking to buy, you need to look at how much rent that sucker is going to bring in each year (minus all your costs that are). That’ll give you your net figure. Sweeeet, huh. You next half-step, which makes it step 2.5, is to work out how much cash you’ll need to stump up to buy the property: down-payment, stamp duty, legal and agent fees. Then just divide your net income by the amount you stumped up and you’ll have your ROI.

Step 3: How Much Rental Income Can You Buy
You know that date you had in mind for achieving your goal by, well, you need to think about how much money you can invest between now and then. Once you’ve worked this out, you’ll want to multiply it by your ROI percentage (you worked it out in step 2). This figure will tell you exactly what you’d have if you did nothing but invest your cash in properties that produced the ROI we’ve mentioned a few times now.

Step 4: Time To Figure Out if That Is Enough
This is the really simple part. How does your annual rental income compare with your goal? That’s what you need to ask yourself. Chances are, it won’t, which is why we recommend you seek the advice of professional investment property service, like Vystal Property Group, and figure out how you can bridge the gap between the reality of your prospects and the dreams you began with. Don’t worry, there are plenty of options available to you, as you’re about to find out.

Step 5: Bridging The Gap, Baby
It may not have been in your original hopes and dreams, but bridging the gap is going to be one of the most important parts of your strategy. It is just a matter of deciding which route to go down, which you can discuss with your advisor. It could be investing more of your own money, or finding someone you can partner up with, or invest in property that may return a higher yield. Perhaps it is time you considered flipping. Maybe your approach is wrong and you need to be better at finding a good deal. Adding value to a property is another option. It may take some time to figure out which strategy is going to help you reach or exceed your target but, once you do, well, it’s time to get this party on the road.

xxo
Kim

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