Did you see ITV’s Tonight programme at 8pm on Monday 14th April. I could not believe the high level of scaremongering on a prime time TV programme. Totally bias towards the doom and gloom of the UK property market.
The programme featured several people who’s finances have been damaged by poor investment decisions. But the presenter was deliberately pushing these poor people on how bad they now felt and how this was going to ruin their lives. Talk about car crash TV!
When writing a review it is always important to balance the good with the bad but frankly I ma struggling to find any good points. I suppose the only benefit for us is that the amateur investor who does not know what they are doing will be put off investing now which means there are many more opportunities for those of us who know what we are doing.
A typical example of the doom and gloom was a lady who had a property that she had purchased unseen and surprise surprise, it turned out to be a poor investment. I think the property was supposed to be worth over £100k but the programme showed that it did not sell at auction for even £70k, suggesting that it was not worth that in the current market conditions. Now there are two interesting points here:
1) When the camera panned around to look at the people in the crowd at the auction there were only a hand full of people there so hardly a fair sample of the investors in the UK.
2) Secondly at £70k purchase price with a tenant in place paying £495 per month I would have purchased that property all day long. Even my wife who was watching TV with me and who really is not into property said she thought that looked like a great deal.
I do feel for the people who have been duped by Inside Track. Whilst I am sure that Inside Track has many satisfied customers there is an increasing tide of customers who are not happy, such that Inside Track are no longer running public seminars (until further notice) due to the lack of demand. That’s funny, because we have been even busier than ever with people who want to lean about successful investing from me.
The problem with inside track is that the only really have one strategy which is Off Plan. That was great 4 , 3 or even 2 years ago when the market was going up , but not now as the market has slowed and is now declining. Although I think that for their £6000 one off membership fee, £120 monthly cost, and 3% finders fee Inside Track should have provided a certain level of service to their clients, you can not get away from the fact that the individual investors should always carry out their own due diligence. It annoys me when people abdicate all responsibility for their investments and them blame other when thinks go wrong.
The point is that investing in property can be risky. There are problems. But as long as you are in it for the long term the benefits far outweigh the short term hassle . This is as long as you treat it as long term. Too many people see property as a get rich quick scheme which it is not.
I have said in several previous posts it does not matter if short term prices comes down as long as you can afford the holding costs. It can be disastrous to try and sell property now so don’t sell, hold onto it. If you can not rent it out, drop the rent until you get at least something coming in and always have a safety buffer of cash to make sure you can cover void periods and potential rent increases.
For those prepared investors this will be a fantastic time to buy property.