When it comes to property, know your ‘why’

Photo Source: BuzzFarmers

Why do you choose to invest in property?

For some people, it’s almost an accident – perhaps they inherit a home or move in with a partner and rent out their own place. However, for most investors, there’s a “why” that explains their decision beyond the usual response of “making money”.

Some fascinating insights into what motivates property investors surfaced in a recent internet conversation on property investment forum Somersoft:

• My “why” comes from my background. I was born poor, raised by a single mother who earned around $35 a month. Yep it’s not a typo…. I promised my children they don’t have to experience that.
• Seven hours sleep, eight hours work… leaves me with four hours to spend time on things that are important, if I’m really efficient. So a maximum of 20 per cent of time, on what’s supposed to be my priority – this ratio doesn’t make sense and needs to change. 
• I like to imagine that one day I’ll make oodles and my doctor and lawyer friends will be like – ‘Hey Lucy’s one clever cookie! She’s not a drop-out at all!’
• I don’t have to do it and I don’t do it for the money. I do it because I like to hunt down a great deal. 
• I’m having a ball at this real life game of Monopoly. 
• I wanted to free up my time to do community projects.
• I walk past a number of homeless people… I take a lot of comfort knowing that I currently have a certain level of financial security and therefore, should always be able to have a roof over my head.
• My parents divorced over money and I never want that to be more important than love itself.
• Because having to rely on the pension scares the absolute **** out of me.

It’s often useful to reflect on your own reasons of “why” you invest in property.

Your background and goals can affect your attitude to risk, not only in terms of making an investment, but in terms of how you protect it with landlord and building insurance.

Being aware of your underlying motivators can also help you think more clearly and, hopefully, make better decisions.

Finally, it’s common for one partner in a couple to be more enthusiastic about property than the other. Exploring each other’s motivations and expectations can help you avoid issues and then come to a shared position.

When you’re clear on your “why”, it’s easier to set a concrete goal and set about the “how” of achieving it…