One of the most surprising discoveries that I have made about real estate investment and investors is that the size of your income does not necessarily determine your long term success in real estate investment.
There is a fairly large number of those who have done very well when you analyse their real estate portfolio who started with very little money.
There are also several individuals who started with great advantages who ended up with very little to show for it in terms of real estate assets. The fact that history does repeat itself if we are not cautious should motivate us to study the factors that though should help people sometimes inhibit them in this regard.
One of the factors that should help a wise man in the area of real estate investment is a good income from a salary or a business. Unfortunately this has not been the case.
Many high income earners end up with a portfolio less than what they should have because they started late. They often despise emerging hotspots because their eyes have been beclouded by the facilities and amenities in their comfort zone.
They refuse to invest money that they should in areas that are rapidly developing because it does not befit their status.
Another reason why mostly middle class and some high-income earners miss the boat of real estate opportunity is that they are so fixated on when they would be able to buy their own land or homes in the expensive areas that they are living.
While they wait and wait, the lesser known areas begin to develop rapidly and by the time they realise it the opportunity to buy cheaply in those areas has also gone. If they are not properly guided, they also lose money in their haste to catch up.
The first key in your bid to becoming a successful real estate investor is to ensure that you make real estate investment a priority in your plan. Where there is a will there is a way.
Many low-income earners or day earners have been able to buy their own land and build before many with greater advantages. There have been several cases where top managers are still tenants somewhere and the junior managers or workers are living in their own home somewhere.
The difference is in priority, motivation, focus and discipline. If you do not make this a priority you are likely to be distracted by other things which may cause your resolve to invest in real estate to weaken.
Another important factor that will determine how soon you start investing and how far you might go is your willingness to start small. Many day income earners are addicted savers.
They engage in traditional co-operatives and make daily contributions which are carefully targeted at major projects.
Once the payout session gets to their turn they carry out major investment decisions and then follow that with baby steps. A lot of our young people do not want to take baby steps. However, that is the assured way of achieving your goal.
Moreover, invest with what you have somewhere within your current income while waiting for the big break.
Remember that many have struck their jackpot by investing in so called remote areas that ended up being the centre of town years later. The big break will come but rather than spend most of your income on consumption, it may be more strategic to invest in real estate and watch it grow.
The investment you make today may be the launch pad to bigger investment if, for instance, you choose to consolidate them in the future. The money that you would otherwise have spent will likely have grown significantly in value.
This is also a source of encouragement to all those who are barely surviving on their income that with a good strategy, discipline and sacrifice launching into real estate investment is possible for anyone.
You might have to start with a modest location that is presently being sold at an affordable price.
You may have to pool resources together in the form of a co-operative while taking your project a step at a time. You may have to commute from a distance to the city centre.
But by and large, it is always better to start investing in real estate without further delay. While income and money are definitely important the size of these resources does not automatically turn you into a real estate investor unless you take the initial steps.
Copyright PUNCH.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Contact: editor@punchng.com
source: http://ift.tt/2ikyYG1
http://ift.tt/eA8V8J