February is officially the month of romance, with retail stores and restaurants all decked out in pink frosty dÃ©cor dotted with love hearts. Â But while February is an ideal time to shower love and affection on your other half, itâs also the perfect opportunity to celebrate your passion for property.
After all, whatâs not to love?Â Real estate investingÂ has the potential to help you build your wealth and supplement your income in retirement. The secret to lasting happiness is to choose the right property to partner with on your journey towards real estate riches.
Head over heels for real estate
In many ways, falling inÂ loveÂ is very similar toÂ investing in property, in terms of the stages you go through:
The initial stage of dating is all about testing the waters and finding out what youâre really looking for. What traits or features do you like in a potential partner? Are good looks important, or are you happy to take on a fixer-upper? What turns you on and just as importantly, what turns you off?
You could ask all of these same questions of your would-be investment property when youâre browsing listings at the beginning of the process. What is your property criteria?
Are you happy to invest extra in renovations, or do you want something ready to rent out? Youâll answer these questions again and again while you browse open homes, until you get a feel for the type of property you really want.
Narrow the field
Flirting and romancing your way through your 20s is almost an Aussie rite of passage. You can afford to take your time in your 20s while you play the field â but eventually, youâre going to want to narrow the field and make a commitment.
Just as youâll need to pick one person to become your life partner, spouse and potential parent of your children, youâll also need to narrow your search down to a short-list of properties that youâre serious about buying. Narrowing the field is when you go through that crucial period of transitioning between âI want to invest in propertyâ and âI am now a landlordâ.
Put a ring on it
As the beloved Queen Bey famously warned single men around the world, âIf you like it then you shoulda put a ring on it.â
Translation: eventually you need to take action and actually take the plunge!
Falling in love with a property deal
If youâve reached this point, and youâre ready to get serious about your love of investing by taking it to the next level, then itâs time to make a deal.
But itâs really important that you fall in love with theÂ investment deal, not the property itself.
This means you need to be unemotional about the property, no matter how much youâve fallen for the Hamptonâs-style kitchen or beautiful backyard. Youâre not going to live in it yourself, so take your love of property investing out of the equation.
You can achieve this by making your purchase decision all about the fundamentals of the deal, such as:
- Is this type of property in demand with local tenants?
- Do the returns work in your favour?
- Is the property low-maintenance?
- Will you need to invest in repairs or renovations?
In other words, fall in love with the facts and figures, and youâll be well on your way to a lasting and loving relationship with your property portfolio!