Having read Ian Cowie’s share-buying column in the Sunday Times I thought his tips are universally applicable to property investing. So here they are – repurposed for property.
- The virus knows no national borders.
You might want to consider investing across borders or within one country, like the UK. Think London and the North East and how they are at different stages in the crisis.
- Invest in tomorrow not yesterday’s story.
What delivered best headline returns last year, may not now. Think about micro-apartments vs vanilla buy-to-lets. In a crisis, regular sized homes in mainstream towns and cities – with less ‘racey’ headline returns – have arguably won through.
- You don’t get paid until the cheque is cleared.
Bear this in mind when doing due diligence on a property purchase. It might look a great deal, but realistically, is it going to work and pay off.
- Expect the unexpected.
Contingency planning and stress-testing is so important when your property projects span more than the short-term, like investing with developers, or off-plan buying.
- When facts change, investors must be willing to change their minds.
Sometimes it can mean cutting losses or divesting a portfolio of a property that no longer fits your strategy.
- It’s a fantasy that property buyers never make a mistake.
This goes for property buyers and the property industry as a whole. If someone is claiming to be infallible, ‘buyer beware’.
- Aim to be in a property sector that will always be in demand.
Family lodgings are pretty essential. Retail space – however – is unlikely to be in great demand moving forwards
- Be suspicious of statistics, trust facts.
In our heavily-curated, social media world, people can seem what they are not. Using factual sources of information as input to ‘Due Diligence’ is far more useful.
- Property people can do well by doing good.
There have been some tragic cases of investments not working out. Look for those who act in the right way and do what they say they are going to.
- Beware short-termism
We can all get spooked by short term events, but often those who are riding out the storm tend to win the day.
If you would like help with planning ahead, understanding and preparing for these eventualities as an investor then please get in contact.
I work with time-strapped expats and entrepreneurs who don’t have the capacity, local presence or gaps in their know-how to build property portfolios in the right way for them. (Or who are simply stuck with little progress). This means you can carry on your day-to-day lives without spending disproportionate time getting sucked into investing.
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