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13%+ Return on Investments

Here is Part 2 of my mini series about investing in real estate right now.

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.


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