2022 The Year of Losing Money
What a year so far. Maybe better said what a decade of 2020s with Covid and Ukraine. This year the stock market has gotten whacked. Bonds in the proverbial 60/40 were supposed to protect one’s net worth. That did not work either. Gold was to be a safe haven! That did not work either! Crypto with all the risks also was deemed somewhat of safe haven. That did not work either!
Buy to let investors are getting whacked due to those who were on interest only now are not profitable. People that simply kept money in the bank lost 10% just to inflation.
Been to many dinners and events and most people are like an ostrich with their head in the sand.
Not beating my own drum, however the social housing without leverage has been holding up very strongly. I have been paid consistently every month since 2014 with never a late payment or drama.
We have been selling properties to those smart enough to actualize the realities above mentioned. With social housing, it is not sexy nor something like Tesla or Facebook ( which is down more than 60% this year). Those smart enough realize doing nothing and leaving money in a bank account realize they are losing to inflation as well as only hopefully protected up to 85k. Not a great deal of solace.
I speak to many buyers however they think sellers are giving away properties and that is not happening. One of our smartest buyers is a single mother in Manchester who originally was doing Professional and student HMOs in Salford. However, she entrusted estate agents and she did not receive her anticipated rents and only received back a trashed property. With the 6 social HMOs that she has purchased she is netting…yes netting…no voids..no management…no maintenance unless structural close to 9k a month completely hands off on a 7 plus 3 year lease.
My personal goal is to develop as many of these properties and hold for the long term & compound money. I only sell some in order to purchase more as banks do not like the long 10 year leases.
Don’t let 2023 be another year of losing money!
#property #project #bno #Hongkong #hongkongbusiness #investment #propertyinvestment #UKProperty #ukpropertymarket #Handsoff #manchesterproperty #liverpoolproperty #socialhousing
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