Myths about Property Investing
There are myths about property investing. In this short blog post…I will mention some of them.
- Investing in property is very complicated
Not in my opinion….follow proven models. Learn overtime. Under leverage…Over try. Realize you will make mistakes but that is ok…keep them small in the beginning. Invest in what you know and understand.
2. Property investing is RISKY.
To some degree this is correct if one runs to fast….over leverages and has not built up a power team. By following sound principles one can neutralize property investment risk. You make your money by buying right and buying great cash flows. Ie we focus on Professional HMOs just for this reason. Professional HMOs especially in our area of Manchester and Salford offer high cash flow. However you need to move fast. With our properties we must be able to complete quickly, buy for cash and refurbish quickly to a high standard. I have seen buyers dilly dally and can not make a decision. Someone else invariably steps up and buys. Even if you think you over paid, the longer you hold property, the more forgiving it gets. Prices historically go up. The problem rises when you over leverage. There will always be voids however low leverage keeps you in the game.
3. The property Market if Over Priced
Yes to some degree and yes people do overpay ( especially now in Manchester and Salford). However there are always personal issues that force people to sell property.
- Relocation
- Divorce
- Death
- Debt
- Marriage
- Family issues…
We have found this to be the reasons we are able still to find some good deals in Manchester for our Professional HMOs…Not as easy…but we do find. One of my colleagues lives on his computer and loves searching for deals. Plus we work with many estate agents and we are their first call.
Bottom line is do not buy into the property myths. You need to just start. Going to courses is the beginning…However for too many it stops there. Buy a small deal and learn.
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