In Episode 66 of the Investing Insights podcast, Victor Kumar and Steve Waters from Right Property Group unpack five investor profiles. The evolution of a successful investor is about identifying your investor profile.
Victor and Steve have for many years referenced the four investor profiles and most recently have added a fifth.
1. The collector loves ownership, wants to buys something. Just wants to be an investor. We see a lot of them in this market. Generally not strategic as they get caught up in brag rights and number of doors they have and mistake action with results.
On the upside buying one is better than doing nothing!
2. The Observer loves the idea of investing but does nothing as there is always a reason for not doing something which is usually wrapped around fear? FOMO in reverse – shoulda, woulda coulda……
The observer spends endless hours poring over analysis and opinion, discussing statistics and rationalising their choices. They will set up an extraordinary number of ‘watch lists’ on their favourite property portal, and examine the results forevermore.
The key failing is they get caught in the endless loop of analysis and are eventually paralysed into inaction.
The right time is always now! To get to the profits, end goal you have to be IN the market to begin with.
3. The speculator loves to brag and accumulate front doors, quick wins, and rolls the dice. They are lovers of action and the thrill of the chase. Most that speculate tend to only look at the positive side rather than looking at the finer details and what could go wrong.
Any investment class has a form of speculation around it . Everyone has been a speculator in some capacity.
Being a speculator sounds like a heap of fun, because they operate with almost no perception of risk, making big decisions on the fly.
Who isn’t thrilled by the adrenaline rush of quick wins? The speculator is on the constant hunt for opportunities to purchase and profit. Driven by the desire for fast gains, they’ll forego sensible due diligence and, instead, try to outwit the market.
The speculator’s view is entirely short-term – they love the action – but speculation without information is a risky game in property. And the downsides can be extremely costly.
4. The investor is the most sophisticated of the four types. This is what you want to be, or at least, where you’ll want to end up.
The investor loves opportunity and is prepared to take advantage. The investor has their finance at the ready and research on hand. They’re aware of what’s needed for their portfolio to thrive in the long run.
As the investor the strategy that you deploy is always pivoting slightly. There is always something that will come up where adjustments need to be made. Controlling the now.
5. The resentful investor almost always comes out when things don’t go their way. They let go of all commonsense. They focus on nothing but growth. Because everything is humming along so I can afford all of this but then the rate of growth slows, rates increases and the lack of CF becomes very apparent. Resentment then sets in. At this time of the cycle they don’t exist but come the next 3-5 years they will crop up as commonplace.
All profiles lead to the resentful investor if you aren’t well considered and stay the course. To prevent the resentful investor coming out, Right Property Group clients have regular portfolio reviews by Victor and Steve - guidance and clarity in keep your finger on the pulse and are seen as an important element to controlling your portfolio.
Need guidance on where to next? then book a blueprint meeting with Victor or Steve. Click here https://rightpropertygroup.com.au/blueprintsession/
If you have any questions about what you heard today please email [email protected]
