There is no magic bullet for types of properties as well as types of tenants. We try to look at the worst case or when interest rates raise. Strongly stress test your portfolio at some crazy ( maybe not) interest rate of 8%. See what your payments look like….what happens when you have voids…

 

We do Professional HMOs, Social HMOs that are on fixed guaranteed rents, no voids…no management ( yet they are no silver bullet), we do buy to lets and we do blocks of flats with extreme low leverage. Being diversified hopefully survive any property crash or challenge. We only look to borrow at 50% of our cost…which probably comes down to 40% or below of market value.

In 2008 the property market was a disaster. You could stand on your head and not give property away. With social tenants we are being paid regardless of the economy….Tenants on that are on LHA stipends were safer than working tenants during the 2008 crash.  Low leverage and diversification we feel are valid tools.