One main reason why people start investing is to gain financial freedom. However, people go different path to reach the same goal. However, the fact is most property investors can’t achieve financial independence they expect to. Owning a property or two doesn’t necessarily make an investor financially independent. Of course, there are many factors why most property investors can’t even achieve their goal to have financial freedom even though they have done everything to make sure their business running well. Aside from finding out every factor, it is also important to know more about the type of property investor.
Types of property investors you need to know
There is no obligation for you to separate property investors into certain category. However, you can learn more from it because every type has different tendency in doing their work. There is no need for you to decide what type of investor you want to be. Of course, choosing which type of investor is better than other sounds wrong. However, every type has week and string point that you can learn from. Knowing the type of investor will help you to be more aware of the possibility of you working in certain tendency which doesn’t benefit you at all. You may have something to learn to improve your performance in property investing by understanding more about types of investor.
- Analytical investors tend to spend months to years just to examine every nook and cranny of property markets. There is endless comparison regarding to values and sales, along with reading reams of materials. They tend to dig deeper to find out do’s and don’ts in property business. They also tend to be busy running around to seek advice from professional as many as possible. They usually spend longer time before making decision. The weak point of analytical investors is the tendency to over-analyze everything which often result in losing good investing opportunity if they can make decision earlier.
- Passive investors tend to have no desire or passion to understand basic ins and outs of property investing. They tend to lack of consideration and calculation in making decision. They also tend to ignore consulting to professional and due diligence. The weak point of passive investors is that they tend to buy one of the first properties they come across. They tend to depend on emotional reasons in making decision regarding to property investing. Some of them even end up regretting their investment decision.
- Active investors tend to put in some degree of work. They aim to find a good investment prospect. They at least find out about seek the basic understanding of the principles involve in property, taxation, as well as finance. They also tend to seek for professional advice. They do it to ensure their portfolio has the right structure. They also tend to do their due diligence to increase the opportunities to gain profit. Compare to analytical and passive investors, active investors tend to do better in property investing especially if they seek advice from reliable consultant.