Why oh Why do we do Property Investment?

Why?

“He who has a why to live for can bear almost any how.” Friedrich Nietzsche

Why do you do what you do?

Why? is a potent question. This seemingly innocuous combination of three letters has the potential to cause havoc or an unnerving degree of anguish when addressing a sensitive subject.

Do you ever stop to think about why you …

… do the job you do?

… live where you do?

… drive that particular car?

… go to that particular holiday destination?

I don’t know about you, but sometimes I have to pause and revisit the reasons for my daily actions. Otherwise, the risk is that I fall into habits of activity, the original purpose for which may be long gone.

Why Property?

Going back many years, when The Other Half and I started investing in property, we simply bought what worked for us at the time – a holiday home, a pied-a-terre in London – and were lucky to ride the crest of an increasing house price wave. The over-riding reason was … fun! It added value to our corporate-centric lives.

Since those heady days back in the late 1980’s we’ve had plenty of ups and downs in property and life, acquiring a few rentals along the way. Years later, we eventually realised that property had come to form the backbone of our income, sustaining us through a multitude of moves, job changes, life and business challenges and too many hair-brained schemes.

When we started, the income factor was not important, but that has changed. Now, property is our business and the rental portfolio our primary source of income. If we don’t “do” property, we don’t eat. Quite an incentive to make it work, don’t you think? (Oh ok, I’m exaggerating just a little – but we wouldn’t be able to go to nice restaurants!)

What’s Your Why?

Chances are, in reading this you are either considering or already investing in property yourself. 

Why? What is your over-riding purpose? What is the ultimate reason for which you are purchasing property and renting it out, that will keep you going through the days when tenants can’t or won’t pay the rent, when they do a bunk and leave a mess, when you lose out on a deal that you’ve been working on for weeks or more? What is worth the time and hassle involved in renovating or flipping, or (gasp) the risk of losing money?

Some people invest in property because they love it – they relish getting down and dirty with the physical bricks and mortar, or thrive on the thrill of cutting the deal. For others, investing is a means to an end. There might be almost as many motives as there are readers, but examples for the latter group could include:

•          Not enough pension for the lifestyle you want during retirement
•          Being able to give up a hated job
•          Having a more flexible lifestyle
•          Helping your children get a foot on the property ladder
•          Securing your family’s future
•          Getting a decent return on your money.

I’m sure you can think of plenty more, but what does it for someone else may not do it for you. Your reason must resonate at an emotional level. I may want a decent return on my money, but that in itself is not enough to stir me to get off my rear end and build a property portfolio just to be able to see higher ROI percentage figures on the spreadsheet. Being independent and having enough freedom to pick and choose what I do and when I do it, is.

Let’s be honest. There might well be times you wish you had never started. So what is it that will get you through that and break through the pain barrier to the long term reward? You may not like going to the gym, but you do it for the gratification of good health and an enviable physique in the long term.

As Nietzsche says, it’s the why that will get you through the how’s. To find your why, ask yourself:

Why am I investing in property?

When you have an answer to that, ask:

What does that get for me?

Repeat the above question until you get to a word or phrase that resonates emotionally, a little mental “Ah!” of satisfaction and recognition that says “yes, that’s it, that’s why I’m doing it.”

Check in with yourself every year or so to make sure that reason is still valid. Circumstances change, attitudes change and it’s ok to uncover a different outcome with a different why.

Key point: to invest in property successfully, uncover the deep-down emotional reason why it is important to you.

Helpful books:

The 7 Habits of Highly Effective People, Stephen Covey

Awaken the Giant Within, Anthony Robbins

Jayne Owen
Writer: Your Property Network magazine
Investor: Mozaique Property, South & West Wales ( @jayneowen)
Editor: The Property Bookshop (@Property_Books)
Personal and Professional Leadership Coach

Keep Your Knowledge Up To Date

“An investment in knowledge pays the best interest.” Benjamin Franklin

Have you noticed that the property investing landscape doesn’t stay the same for too long? Market fluctuations, lending criteria, regulation and budget changes all have a major impact on the day-to-day business of property investing. Any changes might usher in new methods of operation, or result in new opportunities or acquisition strategies.

How do we keep up with it all?

One of the challenges, I believe, of 21^st century living is how to manage the volume of information that comes at us every day. This is not specific to property of course, but the e-revolution of the past 20-30 years has transformed the way information is distributed. As well as newspapers, industry magazines and books, we now also have email newsletters, online forums, industry specialist sites, RSS newsfeeds, blogs … the list can go on and on.

Then we suffer from information overload.

As investors and landlords it is our responsibility to make sure that we know what the current regulations are, and keep an eye on anything that might affect the value of our properties and rental yields. Over-reliance on one strategy could be heavily affected by a change in policy. While it might make sense to specialise in one particular property investment sector, it is important to keep scanning that landscape for signs of change at the same time.

Keeping up to date with change is essential, but what options are available to you if you want to avoid drowning in the deluge of information?

Professional associations. Joining an organisation such as the NLA or RLA is probably a no-brainer if you are a residential landlord. The information is reliable and most associations communicate regularly with members by email, post or both, and send out a regular publication of industry news.

Professional network. By this, I mean your network of professional contacts – brokers, surveyors, solicitors, accountants and so on, as well as organised network meetings. Updates can be conveyed via meetings, email newsletters, blogs or even webinars. Organised networking meetings may also deliver updates that affect the market.

Online property forums. The right forum can be a good source of knowledge provided you have the time and inclination to search for what you want. Beware though – they can be addictive and you could end up wasting many hours. Depending on how you value your time, it might be cheaper in the long run to pay for the information or advice you need.

Industry magazines. There are a lot of consumer property magazines around, though precious few specifically for investors. As a writer for Your Property Network, I must declare an interest here! It is not the only one on the market, and most investor magazines will keep readers abreast of changes.

Books. Being a book-lover, it is no surprise that I advocate books as a good source of information! For timely updates and changes though, you are better off with a professional association, your own network, magazines or forums. Books are a good place to start when you want to learn about something new or are seeking inspiration.

Courses. More expensive, very focused and generally a means of developing your knowledge of a particular subject, rather than keeping you up to date. Most landlords will benefit from a course that introduces them to the regulations and responsibilities of letting residential property, though whether to become an Accredited Landlord remains the individual’s choice at present. That may change, so watch that space. Numerous companies and individuals offer courses on property strategies and wealth development – choose your course and provider with care. Decide what subject you want to learn about first, then research providers carefully. Get recommendations from previous delegates.

Mastermind groups and courses. Often a high cost, these are more suitable either for ‘serious’ or experienced investors who want to develop themselves and their business, or for people who want to turn professional.

Key point: find the information medium that works best for you and avoid getting distracted by all the rest.

Jayne Owen
Editor: The Property Bookshop (@Property_Books)
Writer: Your Property Network magazine
Investor: Mozaique Property, South & West Wales
Personal and Professional Leadership Coach

What has happened to good old-fashioned customer service?

Here at Midas we pride ourselves on offering good old-fashioned customer service and allow our clients to take all the time they need to make a quality decision. Too often we meet people who have been pressured into making decisions about buying a property and also we are surprised to hear how little after-care is given to the client after a purchase is made. We're also disgusted that some companies apply pressure to clients in a "presentation format" to buy seminars or DVDs for exorbitant prices. It was said by a well-known property guru who offers a year long course of seminars for £17,000 that 80% of his students don't do anything AFTER his weekend courses. We totally understand why this happens. It's because the student is left to fend for themselves and doesn't have the courage or experience to follow through with any deals they find. Once they have bought the property then the management is a lottery without the right advice. So, we aim to provide the total service where nothing is left to chance, and the customer can relax knowing that all bases are covered, and that we'll help you reach your destination as smoothly and as efficiently as possible. Our Commitment to Excellent Service To book a no obligation appointment with us, please just get in touch today on 0117 9117590 or email info@midasestates.com Wishing you every success. Robin Robin Campbell (Director @ Midas) ....helping people profit from property and design a life of choice 0117 9117590 | 077 6660 6662 | Website | robin.campbell@midasestates.com Watch our Online Property School >

Why Choose Midas as an Investment Partner

Midas Estates have established relationships with the major players in the development world. Here are just some of our partners who work with us to deliver discounts, and the very best prime location rental properties. Midas Director Ian Clark used to be on ITV's "The Estate Agents" in 1999-2000 which drew in 10.5 million viewers. He is also an ex director of Exeter City FC and owner of Clark & Co Estate Agents in Bristol, which grew to four branches. Ian is the driving force behind Midas Estates and his passion and desire to help everyday people achieve their goals runs throughout the company philosophy. Ian says "we teach people to get their money working for them and show them a way to get their lives back" Mark Regan, MBE, World Cup winning England rugby player, Director Midas Estates "I was very sceptical with property investment because I had made mistakes in the past, and bought property in the wrong areas. When I met Ian Clark in 2008, I needed some time to come to trust the business and fully appreciate what was on offer. "Over time though it became apparent that Midas Estates knew exactly what they were doing, and I have now invested many times. With Ian’s expert advice I am confident that my future is now secure. "It's now a case of my money working for me and not me working for my money. As an ex-professional rugby player I always knew that the time would come when I had to make some investment choices to ensure my earnings were going to keep me in the days beyond my playing career, so it was always important to me to make sure I got the decision right. "It’s now very easy to relax knowing Midas have got my hand and wont let me go and will advise me every step of the way. I have since joined as director and have recommended Midas to other rugby players, and they have never looked back with the investments they have made". Lee Johnson ex Bristol City player, now manager at Oldham, Co-Director Midas Estates "I have been to many property seminars and seen many property investment models, but what struck me about the Midas model was the level of accountability that they offer their clients, making it a commitment to achieving success. A lot of other companies have tended to leave the client without a firm support process. "Ian Clark's research impressed me also, and I know that the properties I have seen have all of the right things going for them – location, growth potential and strong rental. "The long term planning also means that those who just want to trust Midas and get on with their lives can do so with peace of mind and knowing that there is someone there always accountable. I joined Midas as co-director because of the warmth of the team, and the fact that the model works and leaves the client in control with a dedicated team always there to make the plan work. "Some of the younger players at Bristol City come to me for advice and so its good to know that I can refer them to Midas as a trustworthy company who will look after their interests and not rip them off. There are a lot of hard sellers out there who are only too quick to take your money and a professional footballer’s career can be very short, so it's vital that we choose our investments wisely". Janet Watts, Cake Maker from Cheltenham - bought a property in Cornwall and told the Sunday Times all about it. Malcolm Wilson told Phil Spencer's Property and Home Magazine all about his experience with Midas Estates and how it has really taken him to the next level in his investor journey. High Standards with our property research Here are just some of the properties we have sourced in the last two years showing you the standard we are aiming for. We are looking for desirable properties, which offer capital growth, and are in sought after locations. School House Conversion - Wapping Dockside on the harbour in Bristol Pentire Point and Watergate Bay, Newquay coast On the 18th hole - Golf Course Bristol Lemonade Building - Barking White Cube - Lewisham Countrywide Estate Agents with 1200 branches nationwide are now engaged with Midas to partner for 2014 offering additional leverage for our tenant finds but also our sourcing of developments and land deals. Spicer Haart, the UK's second largest estate agent network, signed a partnership agreement with Midas to run Property Investment schools in London for 2014 We hope you are encouraged by our established working relationships with have been forged over many years of hard work, and passing through much due diligence on the part of all of our working partners. We have earned the right to call them partners and together we are able to offer more and more value to our investors. For a free one to one consultation, please get in touch today. Wishing you every success. Robin Robin Campbell (Director @ Midas) ....helping people profit from property and design a life of choice 0117 9117590 | 077 6660 6662 | Website | robin.campbell@midasestates.com Watch our Online Property School >

Getting Your Mindset Right

For those that are just starting out in property investment, there is usually a mental journey they must take before they achieve success. Below are just a few of the things we recognise they must come to terms with along the way. Some of our clients have now made some fantastic life choices thanks to their portfolios. Here are some of the reasons why people started their investment journeys with us. • Move abroad. • Take the summer out to follow your passion. • Travel the world. • Buy your dream home. • Go part time • Sack the boss. • Start your own business. • Grow a pension to retire on. • Leave a legacy. • Work for a charity. 1. Find your reason why It is all too easy to forget why you started out in property investment and become engrossed in the process of buying and staying on top of the investment's progress. If storms come like interest rate rises or boilers failing, thus draining your buffer, it can become a negative force on your intentions for investment. So it's important to be able to recall your reason why, at will, and hold it in the forefront of your mind so as not become overcome. So is it retiring early, being successful, leaving a legacy, getting your life back or getting more choices that motivates you? Then discover your reason - keep it there in front of you and remind yourself when times get tough. 2. Be disciplined You cannot be a property investor without have some basic discipline because the result is directly affected by your ability to stay focused and disciplined. For instance, your book keeping. We assist you with this with our online cloud software enabling you to produce an accurate tax return, which again we assist with. You will have to resist tapping into your buffer when temptations arise because one day your buffer will save you from trouble when the boiler goes or the mortgage rates rise. 3. Have high standards Your property needs to be in good order and will stay rentable and achieve the highest rents if you invest in new fixtures and fittings. Your property portfolio will also one day incur a cost which will knock you back financially without adequate insurance. So, don't cut corners and use the appropriate landlords insurance and accident cover to protect your investment and keep the income regular and consistent and maximised - speak to our lettings manager Andy Dillon for advice on this. 4. Begin with the end in mind Not having a goal is a common mistake made by landlords. Apart from knowing your reason why, you will also need to know how you intend to finish your investment plan. Is it a 10 year plan? Are you going for growth first and yield second? Are you looking to exit with a sale? Or are you going to live off the rent after a certain number of properties? 5. Have faith in the process Property investing sometimes is not for the faint hearted, because over ten years, the growth will be clear to all, but sometimes the market takes a breather and it may cause you concern. We always reassure our investors that their investment is a long term thing. Our founder Ian Clark often says "You don't plant a tomato seed and go outside the next day and expect to see your tomato plant?!"  It's a get rich slowly scheme and will take patience and faith in the process. For a free one to one consultation, please get in touch Wishing you every success. Robin Robin Campbell (Director @ Midas) ....helping people profit from property and design a life of choice 0117 9117590 | 077 6660 6662 | Website | robin.campbell@midasestates.com Watch our Online Property School >