How to Set Property Investment Goals

 

I speak to first-time property investors every day and understand that there are many varied reasons for investing in property. During initial conversations with investors, I always ask about their long term goals, most commonly these include:

Wanting a long term "top-up" monthly cash flow

Saving for retirement 

Short term monetary gain

It's important for us to understand the buyers' goals and appetite for risk so the best options for investment can be assessed.

Many first time investors don't yet have a long term goal in mind which can make it difficult to focus on the type of property they are looking for. If you are just beginning your property investment journey and don't have a goal yet, try the below steps to get started. We advise using the S.M.A.R.T acronym used to guide you in your early goal setting:

 

Specific

 

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Just saying you want to earn more money isn’t a goal as such. Think of the "why's" for example "I want to buy properties that are going to help me achieve cash-flow" or, "I want to build a property portfolio for income when I retire". You should be a little bit more specific, in terms of the details, behind what you want to achieve.

Having a specific goal is helpful as it allows you to check back to see if you’re achieving your eventual aim and means you can select properties that correctly match your goals.

 

Measurable

 

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SMART goal setting involves tracking your progress. If your goal isn’t measurable, you can’t objectively say you’ve achieved it.

Instead of just saying, "I want to earn money to plan my retirement" or "I want to be wealthy and have a flexible lifestyle", then do some things that are a bit more measurable.

Saying "I'd like to have a cash flow of £500 a Month", or £10000 a year" will give you something specific to aim for when looking for a property.

If a goal is measurable, you will easily know if you've achieved it, or if you've missed that target. It also gives you something specific to search for and aim towards.

 

Achievable

 

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Setting an achievable goal means choosing a goal that requires you to push yourself, but is also achievable. If you pick a target you know is outrageous - let's say you're currently making £20,000 and hope to make £1m next year - you're likely to miss your target. If you set yourself a goal that seems impossible, you may end up giving up.

 

Realistic

 

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Extraordinary goals lead to extraordinary results, so be bold. However, in order to effectively set SMART goals, you should also make sure your goals are realistic. Realistic goals are those that you are willing and able to achieve by improving your current habits. What do you have to do to reach your investment goals? While setbacks can be a catalyst for change and rejuvenate you, if your goals are unrealistic, you will find it difficult to get back on track.

Remember, goals can change. You may set a goal of earning an additional £1000 a month within the next 12 months, but after researching this may be revised to "within the next three years". Taking advice from experts is always a good idea as they will be able to set expectations from the outset.

Timed

 

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The final principle in defining SMART goals is to set a clear time frame within which you can achieve your goals. Give yourself a reasonable amount of time to reach your goals. Do you think you can start in six months, one year or two years? A clear timeline is important for reviewing your progress towards your goals. If you don't meet your goals within the time frame, it's time to reassess: Are your goals achievable and realistic? Is your time frame too short? Or are you just not giving everything? If you use the SMART goal acronym to set what you want, there's nothing wrong with resetting your goals as long as you know why your goals weren't achieved.


Remember to document your goals and regularly refer back to them. A good example of a S-M-A-R-T goal might be:

"I would like to build a property portfolio to achieve a passive income of over £2,000 per month for my retirement. I would like to purchase these properties within the next five years using money from savings and mortgage finance"

 

Would you like to speak about your property investment goals?

 

We have friendly, in-house Property Investment Advisors that are happy to chat. They will be able to help in advising if your goals are measurable and which properties and locations would be best suited. Click below to book a short call:

Book a Property Investment Call

 

Or enquire now: info@heatongroup.co.uk /  01942 251945

 


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