If you were planning to make some money from real estate this year, you should be setting your sights much longer than 10 or 12 months.
Property is one of the longest-term investments we can buy, and shouldn’t be looked at as anything less than five, preferably 10, years.
Sure the renovation and development geniuses can sometimes turn their skills and luck into a quick profit on a property, but the rest of us need to take a deep breath, keep calm and hold it for up to a decade.
Surging house prices in several states in the past year have been welcomed, and many experts expect more solid growth in 2014 but warn that the cycle may turn in 2015. This means anyone who buys in 2014 may be looking at a few years of flat or negative growth.
If you invest for the longer term, even if there is a flat spot in property price growth, chances are rents will be rising, giving you an improved income much like rising share dividends keep stockmarket investors happy.
Write down your expected, best and worst-case scenarios for your real estate investment. It will give you something to measure against rather than just hope for the best.
So swap those pesky one-year goals for a detailed 10-year property plan. It takes the pressure off you for quick results, and gives your property the chance to ride out the inevitable ups and downs that all investments experience.