Half of newbie investors do not have a plan. Image – Canva
  • One in two beginner investors do not work with a property investment plan
  • More seasoned investors are more likely to have a property plan
  • Property websites and magazines are the number one source of advice

One in two beginner investors dive into the property market without a formal plan or strategy according to investment consultancy group Momentum Wealth’s 2022 Property Sentiment Report.

The research surveyed 780 investors nationally, one in three (33%) investors do not have a property investment plan, a figure that rises to 52% among investors with one property in their portfolio.

Momentum Wealth Managing Director Damian Collins said that a plan is especially important for first-time investors.

“It is a concern that one in two beginner investors are entering the market without a formal strategy in place.”

Damian Collins, Momentum Wealth Managing Director

According to Mr Collins investors should consider that property selection must not only be price driven.

“Different properties and locations will each deliver differing results in terms of cash flow versus capital growth. This makes it critical for investors to understand what they are aiming for in property investment, and plan accordingly.

“For first-time investors, planning is especially crucial as it ensures an informed purchase decision at the start of the property journey, and provides a solid launch-pad for further investments in the future,” added Mr Collins.

Websites and magazines advise three in five investors

Three in five investors (59%) seek investment advice from real estate websites and magazines making it the number one source of guidance.

Professional property advisors (37%) are the second most common source of advice followed closely by podcasts (34%).

The report found that first-time investors are more likely to turn to the expertise of family and friends. This is the least common source of advice among multiproperty investors.

Seasoned investors are more likely to have a blueprint in place

The Property Sentiment Report found investors with more properties tended to have investment plans in place.

Among surveyed investors with two or more properties, 80% have a property investment plan. This proportion rises in line with property holdings to reach 86% for those with over five properties in their portfolio.

“The high proportion of experienced investors who have a plan in place is testimony to the value of having a blueprint to follow as part of a long-term investment strategy,” said Mr Collins.

He noted that as financial situations are constantly evolving, plans made should be regularly reviewed and finetuned.

“I encourage all property investors to develop a personal roadmap to be confident they are investing in a suitable property to achieve their goals. This is an area where the advice of property experts can prove incredibly valuable,” Mr Collins said.

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