We’re going to take a look at your property investor persona in this article. Usually, you would look at a buyer persona from the point of view of marketing. You would look at the people who buy from you and identify their traits, habits, and a number of other things that help you to develop your plans to attract them. In this article, we’re going to take a look at property investor personas. That might seem a bit backward, but consider what you could do as a property investor with knowledge about yourself, your behaviours, attitude to risk, and so on when it comes to developing your business. So we won’t be looking at customer persona, we’ll be looking at your persona and the things that drive you.
When you develop most personas you would include some demographic data like age and gender. We have included some of this data. Some of our personas, however, may not have defined age ranges, for example, so we have not included them. Similarly for gender. There are more male than female property investors in the UK, and significant numbers of couples investing jointly.
Including your Property Investment Persona in your Portfolio Review
In our blog “5 Good Reasons to Review your Property Portfolio” we looked at the business aspects of your property portfolio, and the importance of regular reviews. Take a look back at that review in the context of your Property investor Persona. Does it change the way that you think about aspects of that review?
And considering yourself in your property investment success doesn’t end there. DiSC Profiling is designed to increase your understanding of yourself, how you react to situations, your motivators, and problem-solving skills. more information about DiSC profiling from our sister company Identity Resource
Why does a Property Investor Persona matter to my Buy to let Properties?
It matters a lot. Like any business, success or failure depends upon the people in the business, their skills, personality traits, and ability to deliver. That’s no different from your property portfolio. And your property portfolio is a business like any other. You own assets, you make sales, you make a profit (or loss), and you pay tax. Understanding yourself, your drivers, skills and motivators will help you to develop a business strategy that is realistic, and that you can deliver.
Property Investor Personas
We’ve identified five property investor personas. There are similarities between them and differences too. And as your business develops, you may move between them. It stands to reason that you will develop new skills and motivations right?
The First-Time Property Investor Persona
There are three points of entry here. Next generation investors who are in their twenties or early thirties. They are looking to begin an investment portfolio as an option to raise funds to buy a home, or possibly travel. At this point, they are “me-centric” so looking for a supplementary income for themselves. They will be somewhat gung-ho about investing, and willing to take some risks to begin their portfolio.
They might not have a clear long-term goal and little business knowledge. They may also use the internet as their primary source of advice rather than investing in professional advice.
The second possibility is the wealth builder. They are older, up to around 60 years old, and are looking to build a portfolio to generate a medium-term income and long-term investment portfolio. These are people who have a low threshold for risk and are prepared for the long game. They are seeking stable investments and are prepared to take advice from professionals on how to get started.
The third group is the retiree investor. These are people over 60 who are looking to make property investments to generate a supplementary income. They will be clear on what they have to spend and look for investments that are stable and low risk. They will take advice and carefully consider options, and steps to take and be keen to get it right first time.
The Accidental Landlord Persona
This persona will have come by their property investment almost by mistake. They may have inherited a property and decided to convert it to a buy-to-let, or inherited money and invested it in a property. Or they may have had a good idea one day. They are unlikely to have ambitions to grow their property portfolio. They will probably be happy with one property and are unlikely to develop that property as a portfolio.
They are also more likely to make mistakes based on a lack of knowledge of their responsibilities and are less likely to take the time to find out what those responsibilities are. They probably operate on a “just in time” basis by being reactive to situations rather than proactive. This persona is likely to consider only the rental income in the short term and is more likely to sell without considering long-term opportunities for their property.
The Established Property Investor Persona
The established property investor persona is exactly what you might think. They have been running the property portfolio for some time. It is well established, stable, and meeting its objectives. That is reflected in the personality of the investor. Someone who is steady considers options and has a low threshold for risk. Whilst their portfolio is stable and they are successful, they will never really rock the boat, or take any real risks to grow their portfolio. They are likely to invest in additional properties, but only when the returns and level of risk are clear, and can be forecast accurately.
Their motivation is more likely to be long term and they are building and maintaining their portfolio as a retirement income, or to raise funds for university or school for their children.
The Expert Property Investor Persona
No surprises with this one. The expert property investor has a multi-property portfolio. They are experienced and have spent time learning and honing their skills. They have built a network of skilled experts around them, and are aware of what they know, and more importantly, don’t know. They will have clear values and goals. They could be motivated by a will to raise funds for their children’s education, for retirement, or to generate their main income. They will assess risk and understand it, so will be prepared to take a higher level of risk if they believe that the return is worth that risk.
They will make mistakes but will learn from them. This persona is likely to take professional advice and invest in the future of their business with a view to growth rather than maintenance.
The Entrepreneurial Property Investor Persona
This persona will be a risk taker. They will be prepared to gamble to win big. And sometimes they do, but they also lose big when they get it wrong. They are more adventurous and are prepared to take greater risks for greater return. They are likely to be male, below 40 years old. They will have built a network of expert advisors around them, but they may not always listen to their advice.
They will be experienced, and have a growing portfolio. But they lack the steady experience of the expert property investor. They can be a loose cannon, and unpredictable. They will be looking at rental and capital yields.
These are our top property investment persona examples. there could be others. Where do you fit in? if you can see yourself in any of them, drop us a line. We can help you to understand yourself and your property portfolio by using our DiSC profiling and progressive cash flow forecasting techniques. That will give you a picture of you and your business that will help you to develop realistic business goals and strategic thinking that you need to become the property investor that your ambition is driving you to be.
So what is the next step for you as a property investor? More information here