GREYHOUNDS & LEMMINGS
What do Greyhounds racing around a track and Lemmings congregating in mass migrations have in common ? ... both seem to follow one another without really questioning why.
Greyhounds chase a mechanical lure suspended above the ground without any real chance of ever catching it. Lemmings follow each other blindly occasionally to their own demise.
I am regularly approached by clients, acquaintances, friends and family members, all with pretty much the the same question, asked in a variety of different flavours, regarding their next real estate purchase...
Where should I buy my next property ?
What do you think about buying property in this location ?
I am thinking of buying in this suburb/city/state, what is your opinion on that ?
Is this a good location to buy a property in ?
Is now a good time to buy property ?
They might as well ask me about what sport they should start playing, or where should they go on holidays next, or what car they should buy, etc. It is very subjective.
Every time I am asked any of the above questions my initial response is always the same; " It depends, what are you trying to achieve, what is your end goal ? "
A property you buy to live in and raise your family in maybe be different to a property you buy to achieve high capital growth, or high rental yield, or property which can be developed. Logical right. Yet for some reason these same people who appear to be logical and rational in every other aspect of their lives seem to loose these skill when it comes to choosing real estate. Which for many of them is often their biggest purchase of their lives.
As we dig a little deeper behind their initial question, most often we eventually discover that they have not really thought about what their actual end goal is and how they are going to measure it. Frequently their question is a result of a news headline they heard about or a story told or advice given by one of their well meaning friends or family members. Non of which are objective.
Inevitable this person becomes a greyhound or lemming following others because it seems like a right thing to do or a good idea. Without first crystallising their own goal in detail and setting out ways of measuring it.
Specific end goal and its exact measurables are the first step in any real estate development venture. The end goal will set the tone for every decision made along the project journey.
If end profit % or $ amount is the main goal, it will determine;
type of project,
its scale,
timeframes,
location,
purchase price,
design,
target market,
100's of other decisions required to complete that project and achieve your set goal.
A lot of properties can be developed. That does not mean that they should. They may not produce the results you require.
One thing is certain, time is limited and it will pass regardless. It is one commodity none of us can buy more of. So it is very important how you choose to spend it. A lot of time, effort and money is absorbed in every real estate development venture. If you are going to commit to a project choose one that will deliver you results aligned to your specific goals.
Write down very specific goals you want to achieve and in what very specific time frames you want to achieve them. From our experience these goals are very individual and most likely will be different for every person.
We then will be able to help you with the next step ... How.
If this is something that interests you and you would like to enquire more about, feel free to contact us at TOPHAT & MAYFAIR for an obligation-free 30 minutes consultation.