Internationally acclaimed property expert and Wealth Dragons Co-Founder Vincent Wong looks at why property is a sound investment in any market and shares his views on why investing in bricks and mortar will always be as SAFE AS HOUSES.
Browsing through one of the daily British red tops recently, three different headlines screamed out different messages. Right on the same page, the first article told readers that millions (of Brits) are on the brink of a home crisis; the second reported that Summer 2014 led to a house market price bounce, and the third suggested that suspending Stamp Duty will boost the housing market.
Conflicting information like this inevitably confuses the public. And when we, Joe Public, are confused, we tend towards that tried and tested strategy: sitting on our collective hands. As a professional property investor who has invested in many properties during economic highs and lows alike, I know that, with the right education and knowledge to hand, we can all invest in property. I have taught thousands of people the world over these very same skills and strategies. It isn’t rocket science, but it helps to have some guidelines. Here are a few top tips to get you started:
S Starting point – First off, consider your investment and training options. While you won’t become a property millionaire overnight, do your homework and find the right training or training programmes for you
A Action – Don’t just sit still once you have attended an initial seminar or read a few books – consistently push forward
F Funding – Understand your credit scoring and understand how the system works and also that sometimes you don’t need any ‘money’ to secure a legal property deal
E Education – Education is key within this process. Do not simply rely on Google searches and then think you can go out and make a million. Many of the professionals you meet along can help you avoid the situations you should avoid based on their own experience.
A Advice – Make sure you have a good lawyer and accountant on board to help you set up and close deals – a lawyer can also help you create a solid business structure. They’re absolutely essential when it comes time to deal with Inheritance Tax and all matters linked to legacy and gifting in relation to your family.
S Strategy – With your education and knowledge, what investment strategy is right for you? Lease Options? HMO? BTL? Commercial? Where are you going to invest? Are you looking for monthly positive cash flow, or can you wait some years to recoup your initial outlay?
H Homework – Doing your homework is 100% key to securing any property deal. Make sure you research different geographical areas, current sales and rental information and where any future development is taking place (urban regeneration for example).
O Other People – ensure you have the right power team around you in relation to your property investment business. Through your professional training, you will network with and meet many like-minded people who can help you on your way. There is no ‘I’ in property.
U U-turns – Don’t be afraid of U-turns. Investing the professional way means that there is also flexibility tailored into your strategies and deal to allow for market dips and dunks. Flexibility means knowing when to grit your teeth and weather the storm and when to run for cover.
S Stock market – It is a well-known fact that some of the greatest millionaires are borne out of a recession. Do not be fearful of macro backdrops (either Bull or Bear) or interest rate hikes – there is always a solution when you learn how to invest from industry experts
E Evaluate – Regularly evaluate your portfolio and consider what is working or no longer performing – don’t allow emotional attachment to property to cloud your vision
S Smile – Enjoy what you do. If you love what you do, this comes across and people will want to be a part of your success!
If you look at any of the world’s most successful business moguls such as Donald Trump or Warren Buffett, they couldn’t have achieved such wealth relying on interest in the bank alone: property portfolios are key to maximising business assets. And while some experts believe that a property will double in value over seven years, all that matters is that you start somewhere and do it right. It is only through intelligent and strategic planning that your investments will truly be as SAFE AS HOUSES.