Protecting Your Net Worth Via Property
Last night we went out to dinner with a very interesting couple. The husband was 76 years and wife was half of his age. This gentleman was extremely successful. He worked in the commodity sector through out the world as well as held vast property holdings. Commercial to residential you name it…he owned it. We were discussing the current economic climate and challenges. His thoughts echoed mine. TOO MUCH DEBT through out the world. He did not trust the banks nor even funds. For those of you that are not aware the EU is trying to pass legislation giving up on depositor protections.
This is not a joke. Banks used to be a place that your money was safe. Remember Northern Rock? Bottom line, I asked him what he is doing from all of his years of experience. Simple…Own residential properties with low leverage bank finance. He felt his money was safer in bricks than banks. I could not agree more. Actually we have started buying in Liverpool and hopefully soon Newcastle. We are buying at prices 40-50% less than 2008 peaks…..high rental demands as we tested with gumtree dummy adds and looking to get 50-60% LTV mortgages.
At some points, interest rates will rise…Economic conditions can deteriorate. Last year I was in Argentina. I learned the people that survived and maintained the same level of wealth were property owners. Do your homework….get prepared….Study and learn to protect your family.
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