6 habits successful investors don’t want you to know

November 17, 2016

Make no mistake, real estate is not a game of chance, it’s a matter of making smart decisions and taking calculated risks with the potential of skyrocketing payoffs. If it goes wrong, you risk financial ruin. But do it right, and successfully navigating the real estate field can lead you well on your way to earning thousands.

Whether you’re looking to crack just one sweet deal or build a strong portfolio of real estate properties and turn your investments into a successful career, here are a few habits that’ll take you a long way:

Know your market

If you want to stay on top of the game, you’d best be investing time in updating your knowledge base and understanding the market dynamics. Being savvy means staying up-to-date on real estate trends, property laws and regulations. Also, keep an eye on the economy and elements outside of real estate that can affect your investments such as the job market, crime rates, population growth, etc.

[Related: 5 signs which make Dubai real estate a good investment]

Know your personal finances

A big part of running a successful real estate investment venture is monitoring your finances, regularly and thoroughly. Even if you’re hiring an accountant to do the heavy lifting, be sure you get a copy of the records. Keep a tab on your monthly rental rolls, yearly tax returns, outgoings and so on.  

Buy with your head, not your heart

Your heart may pine for that romantic beach house in the middle of nowhere, but hard facts tell you that a villa in the up-and-coming suburbs of a big city will fetch you great returns in the years to come. Take villas in the AKOYA Oxygen master community, for instance; located just outside of Dubai’s inner-city region, the area promises huge developments in the future, bringing with it significantly higher property values. Remember, when you’re looking at real estate as an investment, there’s just no place for emotions. Take stock of the market metrics to make smart investments.

[Related: Top tips for first time investors in Dubai real estate]

Always network

Succeeding in real estate takes a little more than being book smart. Even if you’re flying solo, building a network of real estate agents, lawyers, property managers and other industry-related individuals can help you stay in the know about changing markets and new investment opportunities. Don’t hesitate to seek advice from more experienced investors either.

Do the math

A smart investor knows to crunch the numbers from a long-term perspective for more stable, lucrative gains. Take into account: Capitalisation Rate (Cap Rate), Return on Investment, Gross Rent Multiplier, Operating Expense Ratio, and Net Present Value, to help you make an informed decision and maximise your investment’s potential.

Buy at the right time

While the prospect of future property appreciation is enough to charm the socks off newbie investors, the seasoned investor knows to look out for positive cash flows. Buying even 1-2% below the cap rate can mean much more in cash flow.

[Related: Dubai hotels: 5 reasons to invest in the hospitality sector]

Now you’re armed with the basics you need to know to go out and conquer the property market. Carpe diem!

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