Tag: Risk & Reward

Time-strapped investors: protect yourself against rogue builders

In the current climate it is challenging for you time-strapped investors to protect against the downside of contractors or builders proving unreliable or taking advantage.

So should you just close your eyes and cross your fingers and hope for the best?

Well no. There are things you can do to protect yourself and mitigate the downsides.

So what are they?

An architect’s Professional connection

Building site time-strapped investor danger sign

Apart from all the obvious things like having a detailed and consistent tender pack – which helps get a shortlist of contractors so you have a 2nd choice if the selected contractor plays up. Having a relationship either directly or indirectly, like through an architect is really positive. If the contractor or builder is looking to the next project from the same architect then they will be interested in the positive outcome of the project in hand.


Time-strapped investors check visibility of a Builder’s reputation

A local reputation that matters, more so if there is an online presence. If there is no social media footprint or website, or review site presence, then there is less visible accountability. If there is no means for feedback and review there is less of a conscience.

And a medium to long term outlook on business is important. This means they’ll be interested in the next contract and be more motivated to do decent work for you and behave with decency and integrity. If they are simply jobbing, they may have no real vested interest in the outcome or producing a great result. And when the going gets tough, it is easier for them to walk away.

What are your experiences of finding and working with contractors and builders?

If you want help on your property investment journey then get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

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6 ‘Property Investing during Inflation’ tips

The Covid Pandemic has fuelled inflationary pressures. The tragic war in Ukraine has caused further economic damage. And we are now being warned of impending global food shortages. All of these pressures have contributed to pushing inflation to close to 10% in the UK. This makes it the biggest issue facing Britain* closely followed by economic worries. You investors may want to think about property investing during inflation.

Uk property

How are property prices affected?

There’s doom-mongering about spiralling house prices but much of this focuses on averages. And as we know averages can hide a myriad of micro factors.

Prices are affected by supply and demand fundamentally although other factors come into play:

  • Inflation places upward pressure on interest rates and other home ownership expenses. Higher household costs can increase home repossessions. Over-leveraged property investors also put themselves at risk.
  • The property market can get nervous about an impending economic downturn. This in itself can be self-fulfilling.

Are you facing a UK Property price bubble?

In the 2008 credit crunch, the economy and lack of money for mortgage lending were key to falling demand and prices. Property prices had risen significantly through the availability of ‘easy credit’ in the lead-up to this period.

Nowadays mortgage lending criteria are more rigorous and house prices don’t appear out of kilter.

The December 2021 House Price index** shows UK House Prices growth at 7.4%. Demand is up 49% and supply in minus territory. Some areas like Wales have seen prices increase by double digits. But not all areas are seeing significant property price rises. London is fairly static and Aberdeen has negative growth.** In many regions, real property prices (net prices after inflation) have risen at about the rate of inflation.

Zoopla research shows that 3 bed houses are the most popular property type to January 2022. Strong demand for houses, which tend to be more pricey, may be a contributory factor to higher average house prices.

The mix of housing stock and the demand: supply imbalance, is creating price pressure. But this is in micro-markets and housing type niches. You are not necessarily facing a bubble.

Still we aren’t building enough homes and so house prices look set to continue to rise, even if it is at single digit growth.

Property Investing during Inflation – Six Tips for you

  • Know the ins and outs of your patch and what the type of demand is e.g. is there a dearth of 3 bed properties because of family demand vs 1 beds for commuting professionals
  • Know your ideal buyer or tenant type and what it is they want e.g. is it critical to be within a mile of a main train station? Or to have extra space for a Home Office?
  • Look at specific numbers, for a specific area for a specific property type
  • Know your risk profile and capabilities. If you are risk-averse and new to property it might be unwise to over borrow or over-leverage or overstretch your self.
  • There is always a balance with risk and reward so don’t get swayed by the upside and forget the downsides.
  • Stay on top of things. Check the detail of the numbers and rental income to ensure you are alerted early on if there is a problem so you can tackle it straight away rather than burying your head in the sand.

*Ipsos – May 2022 poll – 32% of Britons cited as top concern.

**Hometrack

If you want help on your property investment journey then get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

My business focuses on helping time-strapped expats and busy professionals who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients and offers a bespoke sourcing and consultancy service.

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What role does ‘gut instinct’ play in property?

When you make decisions you think things through and tend to have a ‘gut instinct’ about whether the decision is right. Sometimes a decision might be based on instinct, rather than what the logic of our brain tell us.

‘Gut instinct’ or intuition accesses accumulated experiences in a synthesised way, so that judgments are formed and action taken without any logical, conscious consideration.

Think about when you’ve gone to view a property, you might instantly take a like, or dislike, to it from the outside. It may look old fashioned, ugly and run down from the outside and you may know from past experience that this is a good indicator, that the inside is likely to be in bad shape. So your ‘gut’ or intuition, tells you that, based on previously seeing neglected properties this won’t be for you if you don’t want to do any renovation work.

Yet another investor might be drawn to the ugliest properties, perhaps because based on past experience they can generate the highest yields and cashflow if they are in the right area and serving the right tenant type.  

These situations create an ‘emotional tag’ linked to a previous experience which influences decision-making, more than objectively assessing the pros and cons of a situation. This means that to protect decisions against bias, you first need to know when you can trust your gut feelings, confident that they are drawing on appropriate experiences and emotions.*

So when can you trust your gut during property investing?

We often push ourselves outside our comfort zone to achieve things we haven’t achieved to date. This can sometimes create the same sort of feelings of unease we feel when we are about to make the ‘wrong’ decision.

So how do we tell the difference?

I talk a lot about Due Diligence, in essence doing the research and checking things out before making an investment decision. This can play an important role in helping understand if we are feeling uncomfortable because we are stepping outside our comfort zone or because there is a real cause for concern.

Role of Due Diligence on property investment decision-making

Before you part with any money, or sign any legal contract requiring future payments, then it is key that you carry out appropriate checks not only on your potential investment, but also on anyone you might be investing with and the professionals you might use along the way.

Whether that be visiting the local area and comparing comparable prices, rental returns, taking stock of the infrastructure, transport links, schools and health care or checking out a developer’s or builder’s reputation, as well as all the legalities.

So once you have checked things out and taken an objective view of the investment opportunity you can use this to supplement your subjective ‘gut instinct’ and check if the gut instinct is based on:

  • identical or similar situations and whether you have experienced this feeling sufficiently to know that the gut instinct is sound?
  • whether you learned the ‘right’ lessons in the past or are not remembering the situation accurately
  • over-reliance on someone else’s judgement to form your decision, who will have a different set of experiences and judgments.

There is a place for pushing yourself outside your comfort zone as well as using ‘Gut Instinct’ in property investment. The key is to use due diligence tools and techniques to introduce objectivity to the decision-making process and distinguish whether that gut feel of unease is because you are trying something new or because there is a genuine, logical reason for it.

If you want help on your property investment journey then get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

* Strategic decisions: When can you trust your gut?” published by McKinsey Quarterly in March 2010 based on Nobel laureate Daniel Kahneman and psychologist Gary Klein work

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How to continue UK investing during lockdown?

There is so much uncertainty currently.

The Trump: Biden standoff, not only an unseemly moment for the USA but for Democracy globally.

Surrey Buy-to-let investment property

Due diligence can reduce uncertainty when investing in residential property by spending a significant amount of time researching and doing  analysis before jumping to site visits.

• Can the area deliver your target yields and capital growth aspirations?

•  If it can, is this likely to attract your ideal tenant type?

• And can you afford the type of property you want, whether it be freehold or leasehold, or number of bedrooms?

If you are in rush to beat a deadline, what about the sale status e.g. is there a chain? Has the vendor got other options which means they might be less flexible on price?

All of this before physical site visits, which – for me – are not only to view properties but also to see how professional the estate agent is when conducting the viewing. Are they adhering to best practice Covid guidelines? I tend to use this as a proxy for professionalism. If they’re professional during the sale, they are likely to be professional management agents and serve you well during a lockdown.

If you would like help finding the right buy-to-let properties for you then please get in contact.

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the targeted amount of properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

Compliant members of the PRS scheme and on the Advisory Board 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. This is what our clients say



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Navigating Life as an Expat Investor?

As an Expat you may be an experienced worker whose skills are in demand around the World or in a specialist niche in the Oil, Gas and Energy industry or have started working straight from University and embarked on a career with a multi-national firm. Continue reading Navigating Life as an Expat Investor?

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Make building Britain great again

Apart from welcome big news items like bringing forwards higher personal tax thresholds and more help for the transition to Universal Credit for those on benefit payments, there is mixed news for UK property investors and owners. Continue reading Make building Britain great again

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Property Investors: how to ensure you buy ethically?

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,  Continue reading Property Investors: how to ensure you buy ethically?

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Nottingham, Derby and Birmingham’s residential scene delivers more than homes

I check out the product of developers I work with and it just so happened there was a distinct offer I wanted to explore. This involved travelling to Nottingham, Derby and then on to central Birmingham. So I went to do some due diligence Continue reading Nottingham, Derby and Birmingham’s residential scene delivers more than homes

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Gut Instinct or Grind, when it comes to property investing?

There is so much advocacy these days for doing lots of due diligence prior to investing in property, that it almost squeezes out the notion of gut-instinct. But does it have a role to play? Continue reading Gut Instinct or Grind, when it comes to property investing?

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