New Year, New Goals: Setting Investment Milestones for 2023

2023 is set to be a year of recovery and opportunities. As we step into the New Year, setting realistic and achievable investment milestones is crucial for investors, especially in the dynamic realm of real estate. Here’s a guide to help you set, work towards, and achieve your investment milestones in 2023.

1. Setting a Return TargetAiming for a specific return on investment is a prudent start. It’s suggested that real estate investors set a goal of a 10% increase in returns from the previous year. For instance, if you earned $50,000 in 2022, aspire to generate $55,000 in 2023¹.
2. Diversification
   Diversification can be a hedge against risk. Expanding into emerging markets or investing in different types of real estate (residential, commercial, industrial) can provide a buffer against market volatility. Institutional investments in real estate rose by 27% YoY during Jan-Sep 2023, indicating a robust interest in diversification².
3. Tax Planning
   Effective tax planning can save significant amounts of money in the long run. Estimating your tax liability based on your income, capital gains, and deductions, and setting aside a portion of your earnings to cover this liability is a smart move. Employing a seasoned CPA for professional advice is also recommended¹.
4. Networking
   Building a strong network can open doors to new opportunities. Engage with real estate professionals, attend industry events, and participate in online forums to broaden your network and learn about emerging trends and investment opportunities¹.
5. Educational Investmentt
   Investing in your education by reading books, attending workshops, and following reputable real estate investment blogs and podcasts can equip you with the knowledge to make informed investment decisions. This includes staying updated with the latest government policies affecting real estate and business, as well as technological innovations in real estate¹.
6. Delegate More Tasks
   Real estate investing involves numerous tasks. Delegating some of these tasks, possibly by hiring a Virtual Assistant, allows you to focus on core investment activities, thereby enhancing your productivity and investment outcomes¹.
7. Reassessing Your Investment Goals
   As the real estate market evolves, it’s essential to reassess your investment goals. This may include adjusting your investment strategy to align with changing market conditions or personal circumstances¹.
8. Technological Adoption
   Incorporating modern technologies like AI, blockchain, or property management software can streamline operations, enhance decision-making, and provide a competitive edge.
9. Green Investments
   With a growing emphasis on sustainability, investing in green buildings or adopting eco-friendly practices in property management can not only contribute to environmental conservation but also appeal to a broader range of tenants and buyers.
10. Expert Consultation
    Engaging with industry experts for insights and advice can provide a well-rounded perspective, aiding in better decision-making.