When would be taking a decision to
become an investor in property industry, which typical characteristics
possessed by an investor that you should have? What kind of investor profile
that is good?
As an investor, are you a person
who tends to speculate or doubtful type? There are many people who want to
become property investors but they only keep thinking of it and finally never
take any actions. Or you are probably a person who likes spending money quickly
without thinking any longer and this makes your investing decision become a
failure.
Gary Keller, an author of
Millionaire Real Estate Investors, used to conduct a research about people who
are interested to be the property investors and based on this result, he
divided the types.
An observer type is at the bottom
of “investor-level”. This type generally enjoys learning and studying things
diligently. But he will not be an investor as he never takes any action.
Typical observer are those who will spend time and energy to learn and
participate in various classes, seminars and conferences. Unfortunately, they
do not have real motivation to do something and become a real investor.
As the opposite, a speculator is
extremely different. This type of person is not afraid to do something. He
likes taking an action and gets familiar with his mistakes, from where he can
learn. He has a mental of a gambler.
According to Keller, a speculator
often cannot distinguish between investing and risk taking. The decisions taken
are mostly based on willingness to gain some great results quickly. A
speculator likes the property ads that offer a high return from short term
investments.
A speculator type is not always get
succeeded. His courage sometimes makes him gain high return, because he
believes in the principle of high risk-high return.
A collector type likes to invest
based on the emotional value instead of investment value. Just like a collector
of the art-stuffs, he likes collecting something without thinking too much of
taking some investments. It is profitable indeed to invest in property but his
decision tends to be influenced by his emotional e.g. the beautiful look or
colors he likes. He will think that the property he likes and buys will be
an investment and it results some gains when he resell it. However, according
to Keller, a collector is not really investing because the financial aspect of
property is calculated afterward.
Now, what is the character of a
real investor? Keller said, a real investor is he who keeps his effort to
minimize the risks and maximize the return. He is not easy to take high risk
decisions and not typical person who is just thinking because of emotional
feelings. He buys property because there is an investment value.
For Keller, the real profile that
is already inline with the real investor is the observer type. If an
observer gets his courage to take an action and invest, then he has taken a
step as an investor.
Well, if you really intend to
become an property investor, just start by being an observer who looks for
something, learns and analyze it. Figure out any further information since it
is very important in property business. Then, make sure that you can invest
with proper calculation. A real property investor will always understand the
risks that will be happened.
Source: Property-in Magazine
Editorial: Marketing Communications
of +Premium House
