- Should you wait for a market crash
before buying that next investment property?
(calm music)
Hi, my name's Tony Law, from Your First Four Houses.
And my channel is all about helping your cheap
financial freedom through property.
If this is your first time here, be sure to subscribe
to the channel and click that bell notification icon
so that you don't miss out of any of the free content
I give you each and every week.
So, here's the thing, I don't think anyone knows
for sure what's actually gonna be happening in 2020.
And believe me when I say, I've sat down with some
really quite successful property investors
over a few drinks, and we really tried to talk it through
but I don't think anybody really knows for sure
what's happening in 2020, and specifically whether
there is or isn't gonna be a market crash.
Okay, if you were to really twist my arm
I would probably open up and say,
I think there will probably be
a slight softening in the market.
But honestly, I don't know for sure.
But the important thing is that most,
I don't like to use this phrase, but let's say amateur
investors shall we say, think that there probably
will be some kind of a market crash.
And so, they're waiting.
Buyers are nervous, and you know what
sellers are nervous too.
All of this doom and gloom, in my opinion
is nothing but a good thing for you as a
property investor.
Especially when add it to all the other things
that have been influencing, in a negative way
the property market of late.
You see, the thing is, people still need to sell.
I mean, if you got a property,
that you absolutely must sell,
you need to sell this property.
But no one is buying, what are you gonna do?
And believe me when I say, these people are out there.
I think you should now be looking to buy, right now
because honestly there are incredible deals out there,
believe me when I say this, you've just gotta get out there
and start finding them.
So let me give you some strategic, specific things,
that I think you should be doing right now.
First things first, you've got to make sure
that if at all possible, you have funds ready to go.
So that when you find that incredible deal
you're ready to go, you can jump straight on it.
Become an expert at deal analysis, based on return on the
investment, in my opinion.
It's essential that you recognise that fantastic deal
when you kind of stumble across it, or when it's
given over to you by sourcer,
or when your estate agent friend, who you've been kind of
like, connecting with over the past year
puts it under your nose.
Negotiate hard, this a buyers market, never forget that
this, for you, is a business.
So please go in and negotiate hard, be fair,
never try to do any sort of under handy tactics
like, so drop the price five grand at the last day.
I loathe that, that's disgusting when people do that.
But I do think you should be driving a hard bargain.
Become the go-to face at your local NLA meetings.
National Landlord Association meetings, honestly
are a absolutely fantastic way to connect with existing
property investors where, how can I put this,
they're maybe not positive can-do type meetings
and there were lots and loads around the country.
I used to run one for six years.
They're somewhat more based in reality
and with all the negativity they've been hit with recently
they can be a fantastic way to connect with somebody
who's maybe thinking of getting out of the market.
So NLA meetings should definitely be something
you should be signing up for, and they're all around
the country, and they're great, and you'll learn stuff.
Talking about learning stuff, I've gotta say it,
you should be building your education.
There are so many strategies out there,
that can work really well in a flat,
or declining/softening market and so you should,
in my opinion, be investing in your education.
You don't have to do any of my own stuff,
before you think that that's where this is going.
But I do think you should be building some
property based education.
It will only work well for you moving forwards.
You should be buying bellow market value
or you should be looking to add massive value.
That way, if the market does slump, somewhat,
you've build yourself in a bit of a buffer
because you bought bellow market value,
say 25% bellow market value,
so if the properties market drops less then 25%
you should in theory at least, be in the right kind of place
and again the same goes with adding genuine massive value.
And lastly, please never forget, that your strategy,
in my opinion, should be buy and hold.
For the long term, ideally, with very low gearing.
And I do accept that maybe that low gearing bit
doesn't happen straight away, maybe you need to do
some projects, or deals first of all.
So that you can buy and hold for a long term
with low gearing, but honestly, that's what's worked for me
and I honestly think that strategy
is the best way forward for you.
If you would like a 50 point checklist.
The one's you put step by step, exactly what you need to do
when you find that incredible deal, simply click on the link
here or the subscription box bellow.
I'll be delighted to send it straight out to you.