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Business or hobby?

Discussion in 'Investor Psychology' started by Leo2413, 6th Jul, 2015.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

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    So just wondering how you guys view/treat your investing/portfolio. Do you see it as a business and your the CEO, ? or a hobby? or anything else?

    For myself, I see it as a business where I am the CEO and I have advisors who 'work for me', ie brokers, property managers, conveyancers, engineers etc. I have 6 month and 12 month benchmarks where I measure ROI and ROE to assess how my business is growing etc.

    Would be interested to see how others view/treat theirs.

    Thanks
     
  2. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Do you have board meetings? Lol, only joking :)
     
  3. Vicki S

    Vicki S Active Member

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    I treat it as another business
     
  4. Sonamic

    Sonamic Well-Known Member

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    A bit of both. A hobby is something fun that you enjoy doing outside of work hours. And a business is a job you own designed to turn a Profit.
     
  5. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    I simply see property investing as - investing.
    My other business provides cash to invest in property.
    There's not comparison between the 2 in my view.
    Building an 8 figure property portfolio was very easy compared to building a good business.
     
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  6. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Like Ace, I view my investment with investor eyes.

    I admit, being frugal as an individual, it took a little time to get comfortable viewing expenditures associated with my investing as "costs of business" but I'm glad I made the mental shift or I wouldn't have an excellent accountant, wouldn't do my due diligence on properties before making offers, wouldn't be willing to fly up to Brisbane every weekend to find my next place etc.
     
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  7. OC1

    OC1 Well-Known Member

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    The people i engage work "with me", not "for me". Much better mindset to have ;)
     
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  8. Be Developer

    Be Developer Property Developer Business Member

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    well said @OC1!
     
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  9. willair

    willair Well-Known Member Premium Member

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    As long as the business is still growing then it's not a problem,it's only when it turns the other way and then that's when you find out it's just another job and your working for the "BANK,.
     
  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Agree Oct, I didn't pay too much attention to the wording. Definitely work side by side to achieve the best outcome.
     
  11. drg86

    drg86 Well-Known Member

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    I treat investing as my other part time job. I do contract work for around 8 months of the year and then use the other 4 for renovating and holiday. I'm a very hands on investor doing near all the renovation work myself so it's a job for me. The hardest part is not seeing a wage come in during that time, but the equity gain is all worth it in the end. :D
     
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  12. MRO

    MRO Well-Known Member

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    I like to think of the IP's/developments as a business. I work 9-5 for someone else to pay the bills and building a 10+ IP portfolio, all self managed, renovated and developed is my business. Aiming for the business to pay me enough to quit other job one day.

    I think the level which many people on this forum operate goes beyond the standard IP investor and moves more into a business model.

    Note - i dont own 10 yet but this is my aim.
     
    Leo2413 likes this.