Reasons Experienced Investors Love Putting Their Money into Property

When I say experienced investors, I look at my accountant and others in a position to see who is succeeding and making money.

Our accountant whom we have been with since 1983 ( yes getting old)…He believes real estate is one of the best corners on the market for high returns on investment. His famous line,say, ‘I need a 6 percent yield on my investments to retire, “I don’t know where you’re going to find it these days, except in real estate.” Actually we do much better than this.

Yes you can buy AMZN stock or TSLA…however at the end of the day…The rewards may be huge. But so is the risk. Kind of like going to Vegas and betting it all on black.”

Our philosophy is to grind it out. Buy beaten up disaster houses, bring them back to life as a Professional HMO or Social housing that is on a 5 year guaranteed contract, no voids…no management….The uglier…the smellier….the better.

However, in all reality…property is not without its risks, as witnessed by the housing bubble that contributed to the financial crisis of 2008. We never bought new and wonderful city centre flats or off plan gambling property. Basic old, tired, ugly houses. More so renting to social tenants saved the day when even working tenants lost their jobs and could not pay the rent.

The key is to have a well thought out plan. Understanding of the property market, a plan to generate cash flow, conventional financing, and a reasonable chance of appreciation can significantly diminish the risks facing your real estate investment. Too many ( London investors) look at appreciation as a given. Appreciation is a gift. Look for cash flow. Cash flow keeps you in business. We sell 2 HMOs (both Professional HMOS and Social HMOs) out every 3 properties we source. Again…the word is cash flow….Low leverage…locked in rates…capital repayment…working with the right people…All keys to property success!