Admit it: we all take a second look at social media click-bait that asks the question, “What kind of (insert label here) are you?” There are lots of personality quizzes that seek to label people in every aspect of life. But, when it comes to property investing, there are really only two portfolio personalities that apply, and they can both apply to your investments whenever you choose.
Personality A: The Wealth-Builder
Stock market investors typically earn a 3-9 percent annual return, but smart property investors can make anywhere from 12-30 percent return depending on the risks they take and other factors specific to their market and timing. Building wealth by investing may seem like a no-brainer, but more aggressive strategies such as flipping distressed properties and buying bank-owned homes involve a little more risk. As with any strategy to build wealth, more risk usually involves more return in a shorter time frame, but the inherent risk is something that some investors prefer to avoid.
Personality B: The Retirement Plan
Holding onto existing wealth and investing for the long-term are hallmarks of an investment plan that has a retirement focus. Planning for life after conventional income sources are out of the picture, retirement investors are risk-averse in a big way. Property investing for retirement requires safe-bet rental income investments and less property trading.
Dynamic Investor, Dynamic Portfolio
Depending on what’s happening in the market, what your plans are and what investment properties you currently own or want to buy, your investment portfolio personality may have multiple facets. As long as your long-term plan includes due diligence before a purchase, smart property management and workable exit strategies, don’t worry about applying a label to the way you invest. If you keep a level head, the only thing you’ll do consistently is expand your portfolio – and your profit.
If you’re ready to take your investment portfolio to the next level, whether that’s big returns or a stable retirement income, the professionals at Class A Management can help. Call us today at 817-295-5959 or e-mail info@classamgmt.com.