Reasons Not To Invest In Property
I'm definitely pro property investing, but today I'd like to give you 7 reasons why I
personally think you shouldn't invest in property.
Hi there, my name's Tony Law from Your First Four Houses. My channel is all about helping
you get to investment property number 4 as quickly and as painlessly as possible. Now,
I am a big advocate of investing in property. I think we should all be doing it, to be perfectly
honest with you. I recently did a video on the 8 reasons why I personally invest in property
and will continue to do so for the long term I'll put a link in the box to that.
However, I do genuinely believe that there are times when you shouldn't invest in that
next property deal and so I'm going to give you 7 of those reasons now. Before I do, I'm
going to make one thing very clear. These are just my personal views and in giving them
out to you, I've got to say, I know that there are going to be people out there that will
disagree with me on this. If you're one of those people, feel free to comment in the
box below, I would welcome reading those comments.
In position number 7, I personally don't think you should invest in property if you are incapable
of mastering your own finances. That may seem really obvious, but I know lot so of people
that have done so. Learn how to master your own finances first of all. I'll put a link
to another video I did recently that gave you a really great tip on how to do this and
then move forward and invest in property.
I don't personally think you should invest in property if the deal that you're looking
at is entirely dependent on capital growth. Do you know where the market is going over
the next 5 to 10 years? Up, down, remaining stagnant? I don't know. I have a genuine sense
of where I know where it's going, but I don't know for sure. If the deal you're looking
at is dependent on capital growth, I don't think you should buy it.
I don't think you should invest in property if you can't give me the return on the investment
for the deal that you're looking at. Now, this is very different to yield. If you don't
know how to calculate return on investment, you need to learn how to do it because in
my opinion it's the only accurate way that you can compare one deal to another deal.
I don't think you should invest in property if you need your cash to remain liquid. It
is possible to get money out of a deal relatively quickly, but it's not as easy as you might
think. It's not as easy as having it in a bank, naturally.
Along the same lines, I don't think you should invest in property unless you've got some
kind of a cash buffer. At the very least, an emergency line of credit. At the very very
least, I'm talking about a credit card kind of situation. Really, to be frank with you,
I'm really saying you need to have some cash in the bank because you will get problems
when you invest in property. Goodness knows I've had my fair share and you need to have
capital available to you.
In position number 2, I don't think you should invest in property unless you full understand
your investment area. Now, I have made this mistake before. I have bought properties in
an area that I don't understand. Big mistake. You need to understand the area that you're
investing in. At the very least, if it is outside of your area you need somebody that
you trust to go and look at that property. I want to make it absolutely clear. I'm not
talking about an estate agent here. It needs to be someone that you genuinely trust.
Last, but by no means least, in fact most important of all. I don't think you should
invest in property unless you fully and completely understand all aspects of the deal. I really
hope you found that useful. If you did, perhaps you could take a moment to subscribe to my
YouTube channel. I'll put a link in the box below. If you're more of a Facebook kind of
person, please like my Facebook page and that way I can keep you up to date with when the
next video is available to you because all I want to do is give you guys as much positive
content as I possibly can. I'm saying positive content, obviously there's been a bit of negativity
to this one, but I don't want you to make the same kind of mistakes that I've made,
to be perfectly honest.
My name's Tony Law from Your First Four Houses. I really hope that you found this helpful
and interesting and I look forward to catching you next time. Thank you.