Recently I attended a high-profile Investor Show, which I go to in order to meet industry figures, property friends and to network. When I have time, I am also interested to hear how other companies present their wares. Listening to a number of presentations, a theme began to emerge, either because they were reflected in the content of the presentations themselves, or as an inadvertent consequence of the presentations.
Want a deal?
As human beings we are attracted by good deals and want them to work in our favour. In the property world this can tend to distort behaviour.
Take the issue of 3% stamp duty surcharge for investors in the UK. Over the last few years some of the less experienced investors may have felt compelled to make some unwise investment choices. For example, in the rush to beat the Stamp Duty surcharge being levied in the UK on properties bought in addition to the residential home, some investors behaved rashly, seeking buying short-cuts to beat the April 2016 deadline. This tax change deadline meant some property buyers started to use channels they may not have been experienced at using, e.g. auctions and got carried away, overpaying by considerably more than the stamp duty surcharge of 3%. This resulted in some investors buying unwisely, spurred on by short-term gain, which distorted their long term value judgement. More experienced property traders have then been able to profit from this, by snapping up these properties at discounted prices from desperate sellers unable to make their numbers work, or who could see more creative ways to make some of these property deals stack up.
In the same way, alternative investments are being offered on the market currently. These aren’t for everyone, they suit a certain type of investor, comfortable with a certain risk, but who also need to qualify as having a certain level of assets or income under their belt in order to be able to digest that level of risk. Yet there are sellers who are promoting these products to the general property public, an unqualified group. These are usually unregulated investments but being sold in a regulated environment and there are rules and protocols. This may be paving the way for more rash-decision making.
Property Investors wanting to buy ethically
There is more likely to be a successful outcome for those investors among you, who can think clearly, weigh up risk alongside your personal circumstances and stay grounded in your decision-making. It is about knowing your investing criteria, code and ethics. There is a role to play for alternatives, or other high-yielding investments, alongside traditional buy-to-lets. They each occupy different parts of the market and serve different purposes for investors. Know what you are doing and take on risk in a way that is manageable. Be aware of advisors that may be side-stepping important professional or regulatory issues and as such may have different ethics to yours.
Property Venture® is an award-winning, European investment property company that helps Expats and off shore workers invest in high yielding UK property and property-related investments. We also help UK-based entrepreneurs invest in City buy–to-lets like Berlin in Germany and Krakow in Poland, Managed Leaseback in France, Spanish property.
On the Advisory Board and a Member of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. Take a look at what our clients say
Featured or Mentioned in: The Sunday Times, The Times, The Daily Telegraph, Sunday Express, Daily Express, The Mail on Sunday, Daily Mail, The Independent on Sunday, The Independent, Evening Standard-Homes & Property, Homes Magazine, Property Wire, International Estate Agent Today, Property Overseas Today, Overseas Property Professional, HSBC Liquid Magazine, easyJet Magazine, London Homes & Property, A Place in the Sun, Buy AssociationTags: Alternative investing, Buy to let, investment property, Risk & Reward