23 May REPLICATE A MODEL THAT WORKS PART 2
This is a continuation of my series “How to be a Better Investor”
“There are no prizes for originality” – John Dales
Being successful in real estate, whether in Germany or elsewhere, means knowing what type of property to invest in. Whether it’s a single family dwelling, a condominium or multi-family building. It’s tempting when making a rental investment to model what works in your location. This might be buying flxer uppers, or a property in an up an coming area (shooting for capital gains) etc. For investors coming from the US or Canada, condominiums tend to be a poor investment due to the high maintenance fees and the fact that they are often majority renters who don’t care as much as owners.
The second thing is that you don’t need to reinvent the wheel to be a successful investor. Look around and see, not only what works, but also what is reasonable for you to do. For example I love trading stocks, but I’ve never touched options. There are many investors, including small investors, who’ve done very well at this. But it’s not something I ever felt comfortable with.
The third thing is the famous “KISS” Keep It Simple Stupid. For every simple strategy there area half dozen complicated high end ones which promise the world. If can’t explain it clearly to your grandmother than it’s probably best left undone.
Finally remember the old saying, If it’s too good to be true it probably is”
Now if you want to know more in my book The Complete Guide to German Property Investment, I cover different investment models suitable for all types of investors.
So readers, what has your experience been with investing. Are you a tried and true plain vanilla type investor or have you taken the time to master some of the more interesting investment methods.