13%+ Return on Investments
Here is Part 2 of my mini series about investing in real estate right
Everywhere we are seeing newsletters crowing that the doom-sayers were
wrong and that the property market is alive and well, and is about to
explode, so now is the time to buy.
Those of you who've read my articles for years will know my reaction. I
have been right year after year and the sellers of property based
newsletters have been wrong year after year. They are still wrong, but
they have a commodity to sell so they are talking their book.
The property market doesn't pick up when the economy is probably
heading for its first ever triple dip recession, and the banks are
heavily involved in toxic loans, and the UK's main trading partners are
up to their necks in a financial quagmire. In short, the economy isn't
about to suddenly burst into glory. That means wages aren't going up
any time soon, so people are not going to have the money to chase house
prices, therefore house prices will sag from here, not rise.
This means that buying for capital appreciation is not a viable option.
You must look carefully at the relationship of rents achievable to cost
of buying. You need a proper business plan, and you need to budget for
at least a 10% return on capital, and also budget for interest rate
rises. They will come. When is not known, but they will rise
eventually. You need to prepare for that eventuality.
There are other ways of making money of course. I am still getting
returns of 13%+ on my portfolio. Details of these schemes are available
to those of you who subscribe to The Big Pension
. Links are
available on most of the Unique Property site pages, but the main
description of what to expect is available here:
Interestingly, this bulletin does cover buying property. There are
deals out there by the hundred. I'm talking about buying freehold
properties with tenants already in place, sometimes ordinary private
individuals, but more often commercial tenants. I dont cover any such
deals that bring in less than 13% (10% plus the level of inflation
rounded up). These deals go to auction, and they are better than
anything you'll find in the average estate agent's office.
If this kind of deal appeals to you then do sign up for The Big Pension
Okay, now I'm talking my book, but my book makes money, and takes on
very small levels of risk.