If you believed everything you read in the property investment space, seemingly there is a “magic formula” that will suit every single property investor.
Indeed, this holy grail of supposed property investment advice will work for anyone, regardless of their age, income, risk profile, or financial goals.
Well, just like successful property investment portfolios don’t sprout out of the ground because some magic beans were planted long ago, then, there is no one-size-fits-all strategy.
Bespoke over general
When we’re asked who our target audience, or demographics, are for potential new clients, we always find it difficult to answer that question.
That’s because our clients can be anyone who is interested in creating wealth through strategic property investment over the medium- to long-term.
Now, this could be a teacher, a nurse, a journalist, a small or big business owner, a taxi driver, a chief financial offer, or the director of an international hedge fund.
As you can see, it would be difficult to accurately describe this diverse group of people or create some sort of new age collective noun, such as a yield of property investors!
And that’s the point I’m trying to make… property investment can be a successful strategy for a wide variety of people who earn a wide range of incomes.
Working with bona fide experts means that investors should be presented with tailored advice that is unique to their personal hopes and dreams as well as their individual financial situations.
In essence, every investor should be presented with a strategy that is bespoke to them rather than not a cookie-cutter or one-size-fits-all approach.
Understanding our client’s individualities, including their financial capabilities and risk profiles, also means that we can recommend properties and strategies that will specifically suit them.
For example, someone with more cash flow at their disposal may be more interested in a property with renovation potential, which can be upgraded to create a value and rent uplift.
Likewise, clients with spare cash flow, as well as higher risk profiles, may be more interested in purchasing a property that has development potential, such as one with subdivision, splitting, or a knock down and rebuild.
Similarly, clients with smaller budgets and less spare cash flow are likely more interested in solid properties that are low maintenance and which will increase in value because of their strategic locations over time.
These are just a few examples of why property investment must be tailored to every person.
Unfortunately, when property markets are strong, there is a jump in spruikers, who advertise the same sort of properties to everyone, which will supposedly make every investor wealthy in five minutes flat.
This is property promotion – it isn’t advice – usually involves brand-new properties, in inferior locations, and with a focus on cash flow over capital growth.
Alas, these types of properties are the opposite of bespoke investments.
Rather they are likely to see unsuspecting buyers purchase properties that will be an anchor on their finances for years to come – and that’s not a club anyone wants to join.