Research shows that those who set clear goals and objectives are more successful. For those looking for success as a property investor it’s just as important to set goals. Whether you’re a seasoned pro or just starting out, setting goals Is one of the most important things you can do to ensure your investment success.

Some people just aren’t “into” goals as they can seem like a rigid and even boring approach to life, however goal setting can actually be a huge source of motivation and personal satisfaction. Plus, it can be a good way to measure if you’re on track and your property investments are performing to your expectations.

Here’s how setting goals can benefit your property investments:

1. Goals focus you on your end target. Do you want to hold your investment property for longer than 15 years and achieve capital growth or are you looking to build a portfolio quickly?

Most people’s minds are left to wander, picking up on different threads and the latest fads but never sticking with anything long enough to see it through. For example, many property investors are obsessed with minimising their tax obligation and maximising their negative gearing benefit. For some, this may be the right goal. For others, this may distract from a more important goal of creating cash flow positive investments. It’s important to be clear on what you want your investment property to do for you. Be specific and lay out timeframes and real monetary figures.

2. Goals make you accountable. Investors without goals just accept whatever outcomes come their way but having a concrete goal makes you accountable to yourself when you succeed or fail. A passive approach is not necessarily bad but most successful investors look to establish micro goals to help them track towards a long term goal. For example, an astute investor may realise that renovating the bathroom in an investment property would pay itself back in higher rent within 5 years. A micro goal in this scenario would be to complete a bathroom renovation on the property within 9 months and increase rent by 5% after the works are complete. You can also share your goals with others for additional support, as well as a higher degree of accountability.

3. Goals motivate you. Lack of motivation is one of the key things holding most people back from success. Having clear goals not only clarifies exactly what you want to achieve but motivates you to actually go through with it. A successful property investor may be aiming to use the profits to retire early and travel the world. A motivational goal in this context would be: grow investment portfolio to 5 properties and live off the rental income by the age of 50.

Creating goals isn’t always easy and so many of us are unsure exactly what it is that we want from our investments.

The fact is that if you don’t know what you want, you will never achieve it, so before you jump into a big decision like investing in property, it’s important to ask yourself what goals you are trying to achieve.

Our mortgage specialists can help you create a financial plan to achieve your investment goals. Set up an appointment today.