Donald Trump once said: “Well, real estate is always good, as far as I’m concerned.”
Most people would agree that property investment in the long term is a good investment. The reasons are plain to see, a proven track record, income from day one, you can leverage, etc. If this is the case then why is it only a small minority of people actually takes action and invests? Why do only some people choose to prosper from property investment?
Well for most people what is stopping them is FEAR. FEAR is False Expectations Appearing Real or as one of my mentors used to say, False Education Appearing Real.
People fail to take action as they either play out negative scenarios in their head or they have not had the correct education and have been influenced by someone who has scared them or put doubt in their mind.
Professionals who have had long term involvement in property investment are well aware of the most common fears holding people back from becoming an investor. Here they are – do any of them resonate with you?
What if I don’t get tenants?
This is a commonly voiced concern. It’s understandable that if you are new to property investment, but it’s easily avoidable. Explore the area; make sure all the boxes are ticked. Does the area have good transport links, good employment levels, shops, schools, entertainment and leisure etc? You also need to establish what the going rent is. If you are diligent then you have nothing to fear.
When we look at investment properties with our clients we supply a Total Report which covers all the above points and more. Where we really take the stress away though is with our guarantees. We state that if we can’t find you a tenant within 60 days we actually end up paying you.
I don’t like debt.
What you need to understand is the difference between good debt and bad debt. It’s simple – good debt makes you rich while bad debt makes you poor. Good debt puts money into your pocket while bad debt takes it out. Examples of bad debt include credit cards and car payments. A common good debt is a mortgage on a property investment. Good debt can make you wealthy!
Imagine if you invested in a property but you don’t have all the money to pay for it yet. In order to buy the property, you take out a mortgage and let it to a tenant. If the mortgage is £400 a month, and your tenant pays £600 a month, then you get £200 in your pocket (before costs). Even though you’re technically in debt, you are actually making money from it. So debt is good as long as you do your research.
Property values might go down
Yes they might and they sometimes do but this is all part of the property cycle. As long as you invest in property for the long term you will do well. If you are trying to make quick money from property investment then you do stand a risk of losing money but those who invest for the long term reap the rewards. Property investment is not a get rich quick scheme but you can get rich slowly with the right professional advice and support.
I don’t know what to do
You turn to Rescue my Pension. Whenever trying something new you don’t have all the answers straight away, but you can learn. It’s like baking a cake, if you have a recipe it becomes a lot easier. There are no secrets to property investing. Our Asset Managers are only a phone call away and are happy to pass on advice.
It’s human nature to be scared of something that could change your life, and property investment could change your life for the better. The process can be made easier by speaking with people who are investors already and have already made the mistakes for you.
Don’t waste time, request a call back to speak with one of our Asset Managers who can answer all your questions and help towards taking that first step.