How important is mindset?
Mindset is one of the key things that stops a lot of budding investors from investing.
“It’s all in the mind” when it comes to property investing.
Data from the Australian Tax Office (ATO) shows that more than 1.2 million people own one investment property, but the number of investors who own five properties drops dramatically to less than 14,000. Have you ever wondered why some property investors never get past their first property investment while a small group of successful investors achieve financial independence?
Creating the right investor mindset is probably the most important factor for creating wealth and enjoying a prosperous career in property investing. If you want to be a successful investor, you need to think differently than the average Australian.
Here are 12 steps you can take to create an investor mindset:
- Learn from those with an an investor mindset that are pursuing financial independence and long-term security. Find mentors, educate yourself, attend seminars and workshops, and then take action! Property Women’s Diamond Membership is a perfect place to start. Having a great team of successful people around you who are there to help and support you is so much better than going it alone.
- Those with an investor mindset usually have a burning desire for success. Whether they are motivated by a 9 to 5 job they hate, need to support themselves after a failed marriage, or want to retire comfortably, successful investors with large property portfolios either had or created a desire to achieve greatness. Aim high and clearly visualize what success will look like. Take your dreams of becoming a successful investor seriously so they become reality.
- Don’t get hung up on making the first investment a perfect one. Some people research properties endlessly and soon become overwhelmed with all the decisions. Should they buy a single family home or a condo? A property that needs renovations or new construction? Remember, you’re building experience by taking the first step and that’s just as important as the investment itself. What you really need to do is begin.
- Those with an investor mindset are willing to make short-term sacrifices for long-term results. In other words, they have the ability to prioritise investing over spending.
- Do not allow fear to hold you back. Removing emotion from investment decisions is critical if you’re going to act in a logical and purposeful way. Less successful investors focus on what could go wrong instead of opportunities.
- An investor’s mindset will allow you to think outside the box. For example, maybe investing in another state or even another country will help you achieve your goals by providing diversity in an investment portfolio.
- Many investors stop after one property purchase and sit on their laurels. However, those with an investor mindset can see all the compounding benefits of building a portfolio.
- Don’t allow the haters to get you down. Others may try to discourage or criticize your investment decisions. Even if they mean well, don’t allow these people to persuade you to give up on your dreams. Associate with other like-minded investors who will support you.
- Everyone makes mistakes and experiences setbacks from time to time. True failure is giving up. An investor mindset will allow you to look at every property investment – regardless of the outcome – as a learning experience and remain positive no matter what happens.
- Buy according to the numbers. Do the math on each potential investment and be prepared to walk away if the property doesn’t meet your criteria.
- Set aside time each week to focus on your property investing activities. View property investment as a business, not a hobby. Have exciting goals that keep you motivated. Periodically check your progress to make sure you’re on track to achieving those goals.
- Study the most successful property investors and you will find they view property investing as a way of life.
With these tips in mind, create your own investor mindset. There is no magic secret. The only thing between you and a successful property portfolio that gives you financial freedom is your frame of mind.