Property Investing Positively Portrayed
The media’s portrayal of property investing waxes and wanes at different times of the year, sometimes instilling fear and at other times showing more optimism. Currently, today’s news agendas are ripe with positivity for BTL (Buy To Let) as an investment vehicle for both landlords and tenants. If you compare today’s news agendas with those of, let’s say, six months or even six years ago, the sentiment was generally very different. Such polarized views can be dangerous for the less experienced property investor and here are five reasons why.
1) An investor who does not have a great deal of experience is more likely to buy into what they read, see or hear in the media. Because they don’t have the hard facts and experience to base their professional opinion on, they are more likely to have a knee-jerk reaction upon which they base investment decisions. This is rarely the best strategy.
2) A savvy investor knows that property investing is a sound and solid vehicle for investment within ANY macroeconomic or microeconomic environment. If you know what you are doing and why, there are always opportunities to make money within the property sector (regardless of interest rates or capped lending announcements). Solutions are always available to motivated buyers and sellers, as long as you understand which strategies to use so that the solution is a “win-win” for both parties.
3) Statistics show that property prices double approximately every seven years. Many would-be investors assume they can’t get themselves on the property ladder because they lack the necessary deposit. Thus good rental properties, especially within urban environments, will always be in demand. This is good for the landlord and there are also benefits for good tenants because they will get the pick of the crop when it comes to rental properties.
4) Demand will always outweigh supply, especially in urban areas where space is limited. Young aspirational workers will always want to be as close to city centres as possible because commuting is expensive and time-consuming. In these areas, landlords can charge premium rents, and tenants know that they can get properties of high quality if they are prepared to pay for them.
5) Because being a good landlord and/or also a good tenant is great PR in general and will serve each party well in the long term. Tenants with great references get more choice of homes. Landlords who are reliable and flexible are likely to have fewer void periods (i.e. periods when a property is without a tenant and the landlord without rental income).
It doesn’t matter what the media tells you. Investing in property is a business, it is not a fashion or fad. Being both consistent and flexible will ensure that you make the most of opportunities in any market.
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