Buying property is a big decision, and it’s important to set yourself up for success. One of the best ways to do this is to always be looking for ways to win. This means finding properties that offer you multiple benefits, such as the potential for cash flow, capital growth, or future development.
When you buy a property that offers multiple benefits, you are more likely to make a profit in the long run. In this blog post, I’ll share a personal story about how I applied this philosophy when I bought a piece of land. I’ll also discuss some of the other benefits that I’ve enjoyed as a result of this purchase.
The Story
I bought an acre of land over two kilometers from my house. I needed a place to put my shed because the land where I live is too steep and rocky. I had been looking for a suitable piece of land for a long time, and I was finally able to find one that met my needs.
The land was located in a quiet area, and it was close to a major road. It was also zoned for mixed use, which meant that I could use it for a variety of purposes. I originally planned to build a shed on the land, but I soon realized that it had even more potential.
The land had a house on it, which I could rent out for long-term or short-term accommodation. This would generate cash flow and improve the value of the property. I also noticed that the land was adjacent to commercial properties. This meant that I could potentially develop the land into a commercial space in the future.
I decided to buy the land and start developing it. I first rented out the house to a family. I then started the process of subdividing the land. This would give me two separate properties, which I could sell or develop further.
I also applied to the local council to change the zoning of the land. I was successful in my application, and the land was now zoned for commercial use. This gave me even more flexibility in how I could use the land. I am currently in the process of developing the land into a commercial space. I plan to build a small shopping center on the property. I am also considering building a few apartment buildings.
My Winnings (A Breakdown, Cause It’s a Lot!)
I have been confident that this property was a wise investment. It has the potential to generate a lot of income for me, and it also has the potential to appreciate in value over time.
Here are some the winnings that I have enjoyed:
- I have a place to store my cars and belongings.
- I’m generating cash flow from the rental income.
- I have the potential for capital growth in the future.
- I have the option to develop the property in the future.
The property ticks down all the green flags I was looking for.
- It can be used for a variety of purposes. The land is zoned for mixed-use, which means that it can be used for commercial, residential, or industrial purposes. This gives me a lot of flexibility in how they can use the land.
- It has the potential to generate a lot of income. I can rent out the house on the land, subdivide the land and sell the plots, or develop the land into a commercial space. All of these options have the potential to generate a lot of income for me.
- It has the potential to appreciate in value over time. Land is a valuable asset, and it tends to appreciate in value over time. This means that I can make a profit by selling the land in the future.
- It is located in a strategic location. The land is located near a major road, which makes it easily accessible. This is a valuable asset, as it makes the land more attractive to potential buyers or renters. It is also adjacent to commercial properties, which means that it has the potential to be developed into a commercial space. This could be a very profitable venture, as there is a high demand for commercial space in many areas.
What Made Me Win?
This story illustrates the principle of always setting yourself up to win in buying property. By carefully considering all of the potential benefits of a property, you can increase your chances of making a wise investment.
I have always been a believer of “looking for many wins and many upsides.” I think it’s important to focus on finding multiple benefits in every situation, because this can help make better decisions and achieve goals (faster).
When I was looking for a piece of land to build a shed, I didn’t just focus on the fact that it was big enough for a shed. I also considered the fact that it was zoned for mixed use. A mixed-use zoning allows for the combination of different land uses in a single area. This can include residential, commercial, and even industrial uses. Mixed-use zoning is a popular trend in urban planning and is often seen as a way to create more vibrant and walkable communities. Because of that, it gave me a lot of flexibility and made me more likely to be successful in the long run.
If I had only focused on one benefit, such as using the land to build a shed, I would have been more likely to fail if my plans changed. It’s like putting too many eggs in one basket. For example, if I found that the land was not suitable for a shed, I would have been left with a property that I couldn’t use. This could be difficult and expensive, and it could even lead to me losing money on the property.
By considering multiple benefits for a property, you are more likely to be able to adapt your plans if something changes. For example, if you buy a property with the intention of building a shed, but then you find out that the land is not suitable for a shed, you could still use the property for other purposes, such as parking, gardening, or even building a small house. That’s why it is important to think ahead.
Forethought Wins
There’s a quote in chess that goes, “In life, as in chess, forethought wins.” I think I could also apply this in buying property as well. In addition to the benefits I mentioned earlier I also benefited from thinking ahead. I knew that the zoning for the property might change in the future, so I wanted to make sure that I had enough land to take advantage of that change. I also knew that I might need more space in the future, so I bought two adjoining properties to give myself more flexibility.
Here are other examples you might benefit from buying properties with different purposes:
- Renting
In this case, you should consider the demand for different types of rentals in the area. For example, if you are buying a property in a college town, you might want to consider renting it out to students. However, if you are buying a property in a retirement community, you might want to consider renting it out to retirees. - Flipping
If you are buying a property to flip, you should consider the potential for future development in the area. For example, if you are buying a property in a city that is growing rapidly, you might want to consider buying it with the intention of selling it for a profit once the area has been developed. - Residence
If you are buying a property to live in, you should consider your long-term needs. For example, if you have children, you might want to buy a property with enough space for them to grow up in. However, if you are single, you might want to buy a smaller property that is easier to maintain.
Your Winning Takeaways
Always look for ways to win when you’re buying property. Consider all of the potential benefits of a property, and don’t be afraid to think outside the box. Also, don’t forget to set your standards. This includes factors such as the price you offer, the terms of your offer, and the speed at which you can close the deal. By being flexible, creative and a good negotiator, you can increase your chances of making a wise investment that will benefit you for years to come.
You should also think far ahead, in terms of the resources you have. How do you finance your property purchase? This includes getting pre-approved for a mortgage, understanding the different types of mortgages available, and negotiating the best interest rate. And after you buy it, you should think about how you will manage the property. This includes finding good tenants, having maintenance, and keeping up with your mortgage payments.
Final Words
In all aspects of my life, I stick with my “winning philosophy.” It’s the idea of always looking for ways to get multiple benefits from any situation. It is how you set yourself up to always win. When you apply this philosophy to property investing, you’re more likely to make wise investments that will benefit you in the long run.
By looking for multiple wins and upsides in every situation, I’ve been able to make better decisions and achieve my goals. I believe this is a valuable principle that everyone can benefit from
If you want to follow along with the story of how else I made wins in my businesses (that allowed me to live the quality of life I wanted), sign up for our newsletter: https://idealbusiness.invizbiz.com/newsletter