How Much Is Your Time Worth When It Comes To Investing In Property?
Here’s a problem I’ve been noticing lately… plenty of people want to become wealthy, and they want to think and act like the 1%, but they’re missing one key component that’s holding them back. They don’t value their time.
Time Is Money
The classic saying goes that “time is money”. It’s true. If you talk to the successful people, they will tell you that your time is worth just as much as your money. In fact, time is very limited, but if you’re making money, you’ll know that you can always make more of it.
How Do You Spend Your Time?
Maybe you have a budget for how you spend your money, but have you ever thought about your time the same way? You get the same number of hours as everyone else each day (yep, the same as the richest, most successful people in the world) – are you spending your time wisely? Are you adding value to your day, or wasting time?
Most people would say that they don’t have enough time in the day. They go to work, come home, and have dinner with the family… and then might have a few hours after that to relax (or pursue a hobby). Do you really have extra time to spend on pursuing things that aren’t serving you? Do you have other things you’d rather to?
Are You a Skilled Property Investor?
When it comes to property investing, I see too many people wasting not only their money, but their time. Here’s the thing… if your computer broke and you needed it fixed so you could do your work, would you pull it apart yourself? Unless you’re a skilled and experienced IT technician, you probably wouldn’t. It would be a waste of your time and effort, because you’d probably end up making a mess of things. Most people would agree that it’s best to just take it straight to the experts.
The same thing applies to property investing. Unless you’re a skilled property investor, you shouldn’t be wasting all your time going it alone. If you think you can DIY your property investing, you might not be aware of what’s actually involved. A lot of time goes into learning about property and making the right choices to get good results.
How Much Time Goes Into Property Investing?
I want to give you a bit of a look behind the scenes, so to speak, because very few people actually understand the process and time involved in property investing, from start to finish. I’ll estimate how much time this might take you if you were to try and do it yourself. This isn’t to put you off, but it’s to open your eyes to the kind of detail we go into with our clients to ensure that they are positioned for the best possible success.
Initial Planning: 110 Hours
- Researching locations
- Planning an acquisition process
- Developing a risk management plan that lists anything that could go wrong and putting in place control and protection measures
- Liaise with all the different developers in your chosen area
- Communicate with sellers and pick the property
Liaising and Constructing: 30 Hours
- Select the right mortgage broker
- Select the right solicitor
- Select the right financial planner
- Select the right accountant
- Select the right building inspector
- Select the right insurance broker
- Select the right rental manager
- Select the right quantity surveyor
- Receive, review, and process all the paperwork
- Communicate with all the stakeholders during your settlement process
- Monitor your construction
- Schedule all your progress payments
As you can see, the service that we provide our clients adds up to being close to 150 hours of work that they don’t have to do themselves. If you want to DIY, you need to account for this kind of time in your schedule. And you have to remember that our team does this all of the time – we’re highly competent. Could you execute the same steps without errors?
It’s time to start valuing your time and stop trying to do everything yourself. For most property investors, it just makes more sense to get a team around you who you trust, who can execute confidently, and who will save hours so that you can spend your evenings (or whenever your downtime is) with your loved ones or pursuing your passions.
Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs, and videos on the topic of property investing. Head to [integritypropertyinvestment.com.au/pi4b-webinar-recorded] for instant access to Daimien’s free property investing webinar where you will learn all the things they didn’t teach you in school!