Buy Low Sell High Is Merely A Pleasant By-product of Execution Excellence

buy low sell high is a pleasant by product
Buy low sell high – a pleasant by-product

“Buy low sell high” is and will never be the goal or guiding principle of successful property investors. Although conventional wisdom tells us to ‘buy low, sell high’ to gain a profit, by having this four words stuck in your head will not only cause you to not get a profit but will put you in the red zone very quickly for a very long time.

Start Off the Right Footing – Goal Setting

If you have not already realized, ‘buy low sell high’ is not the goal. Your goal should be something like – “to retire early at the age of 50 with sufficient passive income and savings to enjoy quality time with your grandchildren and serving the community.”

Use this well known template to set your SMART goals:

SMART-goals.png
Source: j6design

Current State Analysis – Financial Planning & Strategies

Understand where you stand now. How’s your financial health? How’s the maturity of your current property portfolio?

Find out how much cash and leverage you command by reviewing the excess cash after accounting for your usually monthly expenses. After gathering these information, you will be able to narrow down to which asset classes and strategies suitable for you.

Closing the Gap – Timing & Actions

After sorting out all the big picture items (goals, finances planning), we are now moving on to when to take action. This is the hardest step out for many people who could talk and plan until the cows come home but afraid to take the leap of faith and work towards their goal.

“By taking small risk, you open up opportunities. By not taking any risk, you are essentially risking it all”

After taking the first step out and here comes the real challenge. If you are selling it yourself, try not to get emotional about selling high in today’s market. Read the life of a diy seller and understand that selling lower is better than not selling at all. Unless you have the luxury of time and available cash to buy another property now, you will not have the time to wait for the market to pick up again. Furthermore, with the recent release of government land sales and the sentiment the state is portraying, the return of sky rocketing price may not even come.

Execution Excellence

Some of you must be already wondering when am i going to write about buying low and selling high? You are almost there, the truth is – it is merely a pleasant by-product that successful investors enjoy seeing.

It is merely a pleasant by-product that they enjoy.

If you have done the above the right way, from goal setting to closing the gap, profits will come naturally. By focusing on doing it right from the start and constantly keeping your end goal always at the back of your mind, profits from buying low / selling high is merely a pleasant by product.

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