We're in uncertain times right now with a whole multitude of issues and regulations to hit the property investors pocket - but can you still make money through property?
I've been having a lot of meetings recently with clients who are interested in our hands-free HMO Portfolio Builder product and these questions and others have come up many times.
- is this a good time to get into property investment?
- what do you think will happen to interest rates?
- what about the change in taxation allowances that is coming in?
- do you think lenders will continue lending to property investors and landlords?
- what area is the best place to buy for a property investor?
- what property investment strategy should I do if I don't do HMO's?
- do you think there's going to be another property crash?
and so much more.
The answer I have to these questions are the following:
Choose a Strategy
There are dozens of strategies you can follow. Whilst this is predominantly a HMO educational resource, HMO mentoring and HMO investment site; I am familiar with the numerous other strategies having been involved with and done many of them myself.
In my book "Cracking the Property Code", I describe 45 strategies that you can choose from (and I am sure there are at least a dozen more to be added) but remember; the choosing is the easy part.
If you're the type of property investor that likes to have a slice of every pie, then sure this will be more fun than the guy or gal who solidly plugs away at one HMO, then the next HMO, then the next HMO, then the next HMO.
BUT; that solid property investor with his or her main strategy will recoup the benefits in the long-run. They'll have a more solid asset base, be more grounded in their wisdom and knowledge of their market and strategy and they'll ultimately have much more free time than the "shiny penny" property investor who flits from one strategy to another
STEP ONE: Choose Your Main Strategy
Become An Expert
Picture this: you're in your 6th year of following your chosen strategy. You've built up a portfolio or business which is turning over very nicely. You've had some struggles (anyone telling you that property is easy is normally a salesman who DOES not have your best interests at heart) but you're in a stable solid position.
You're now ready to diversify and to explore a new strategy. This strategy may not work first of all, you may lose some money and you'll certainly gain experience but you're starting this off from a solid footing. You already have a successful and stable business in the strategy you chose to master 6 years ago.
Now picture this. You want to get started. You want to make money quickly. You've seen a course advertising how you can become a millionaire in 1 year. You go on the course, you spend money on the next course that's offered. You go on that and then you see an advert for another thing that's saying you don't need money to invest and you can make £10K a month within 3 months.
You're intrigued and off you pop onto that webinar, hang onto the experts every word and then start to follow what they say. This spiral continues for some good 12-24-36-48 months until one day you decide you've spent thousands on education but you have nothing to show for it.
The lesson here is - become an expert in your chosen strategy. Live it, breathe it, soak up all the knowledge you can, pay for a course or two, hire a mentor if you need to be held accountable (and want to fast-track your progress by 30-50%). But above all - know that because you chose well, your expertise will see you through the good times and the bad times as you sharpen your saw further.
STEP TWO: Become An Expert At Your Chosen Strategy
Live The Long Game
Property investment always works best when the landlord holds onto their property for the longest possible period.
With capital appreciation in the United Kingdom proving to be strong over the last 100 years; for the person who can wait for the prize - the prize becomes even bigger and exceeds all expectations in a way that short-term fixes never can.
Most property investors do end buying a property or two that does not cut the grade. And it's fine to sell these off, recoup whatever losses you made and try again. But always beware the "shiny penny" or the "silver lining" or the "grass is greener" adage - your best interests are always served by forecasting out the future and holding onto the assets you have.
To build an asset base gives you financial security, stability, surety and a grounding that cannot be taken away. There are certain strategies that clearly preclude this but these strategies are generally start-up strategies designed to build your war chest.
To become wealthy through property, you must at some stage - invest in property and then hold it for the longer term - 10, 20, 30 years or more.
STAGE THREE - Build Your Asset Base And Hold On For The Long Game
In future blogs, I will discuss some of the other questions raised by my clients (and any other's raised by this blog) but for now, I'd encourage you to review where you are right now, ensure you are following ONE proven strategy that will build your asset base and work on becoming an expert in this strategy.
We cannot predict the future but we can certainly ride the storms ahead through careful planning and the accumulation of cash-flow positive property investments.
I recommend HMO's as your chosen cash-flow strategy and to gain the very best in knowledge to set you up to succeed, I'd recommend you grab one of our free cheat sheets and start your journey today - invest in HMO's, invest in your future.