We have worked with many types of investors over the years. From the active go-getter, to the ‘cruisy’ lifestyle investor. Most people go through different phases of motivation throughout their property journey, but a few investor types have remained steady throughout.
We have identified four different investor types:
1. The Passive Investor
The passive investor is busy. They have a full-time job, maybe a family and other interests on the go. They have no time for property investment, but they still want financial freedom. The passive investor will rely heavily on their team of advisors and their asset selection. They will monitor their investments periodically, but won’t self-manage or become too involved with the buying process. The passive investor is confident their team will get the best outcome for them. They also like other long-term investment classes that require little effort, but provide good returns over time.
2. The Active Investor
The active investor likes to know what is going on. At all times. They get involved with research, asset selection, the buying process and management. They may or many-not self-manage, depending on how time poor they are. They are curious about how their investments are performing, but they also enjoy being hands-on. They like to change strategies and look at alternative property types. They may like to try hands-on renovation or other ways to increase returns such as subdivision or development. They are very active in the market, always looking for opportunities.
3. The Conservative Investor
The conservative investor will not invest right away. They analyse the market and like doing their research, but find it hard to take action. They do not trust the market will provide the projected returns and are very uneasy about parting with their hard-earned savings. The conservative investor likes to get involved, but only to put their mind at ease – they are a little anxious and not big risk takers. They call their property manager and advisors frequently. Particularly when the market changes or they read something unsettling in the media.
4. The lifestyle Investor
The lifestyle investor really doesn’t mind how many properties they own or who manages them. They put their trust in their advisors, much like a passive investor, but they also forget to pay bills on time. They are not concerned about growing their portfolio quickly or doing much research before purchasing their next property. They will take risks every now and again and put losses down to the experience of life. They diversify and have fingers in many pies, so it doesn’t phase them if a property is not performing well. There is no emotional attachment to property, but they enjoy the lifestyle it provides – maybe a little too much.
JR Prosperity work with clients from all walks of life. We enjoy meeting new people and helping them achieve financial freedom through property investing. We can do the same for you! Contact us today on 1300 522 562.