Setting Investment Goals & Objectives
Paul: Good day, guys, it’s Paul Glossop here again from Pure Property Investments. This is part of our educational series, and again today, we’re joined by Tristan Scifo. Tristan is a Financial Planner for Innovative Wealth Management, and today we wanted to talk specifically about some clear financial goals and objectives with Tristan, and hopefully get a little bit more of an elaboration of how that can allow would-be property investors into the property investment game a little bit faster.
Tristan: Yeah, definitely.
Paul: Tristan.
Tristan: So look, objectives are the anchor of your investment plan. They really determine exactly what you’re going to do. And some investors, sadly, jump into buying a property because it’s what everyone is doing and what they know is right, what their parent told them to do, without really thinking, what’s the objective here. And I guess an example I’ve come across is one of our clients. A young couple were just about to have their first child at the point that they were ready to have their first property, and what was key is they actually needed to be in a home of their own by the time that child was aged three. That was always the wife’s objective. So when we were doing an investment plan, we had to know, we’ve got a limited time frame. So, similar to that, needing to know your objective, you need to know what your time frames are for the investment. That will really dictate what you can and can’t invest in.
And then finally, to that, I guess, would be needing to know your risk profile. How willing are you to invest with borrowed money, with someone else’s money, and what are the restraints that would limit you from investing in certain things? Are you averse to getting a unit? Are you averse to investing anywhere except for where you know, where you grew up, in the streets that you can see and walk past every day? Things that a pure investor wouldn’t be fazed by, but it might just be that you’re not ready for that just now. So you definitely need to know your personal objectives and preferences before you do pick the right property.
Paul: Yeah, I know. It’s fantastic to hear that because I know, ultimately, when it comes down to investors aren’t always made up of the same ilk, so we need to make sure that we’re all comfortable with what we’re doing. We know that the numbers and the facts are there, but sometimes comfort is a big position and that feeds into the objectives that you’ve outlined. So thanks very much for that, Tristan, and I hope that you guys have enjoyed this short segment.