Why is Property Risky?
The simple answer is because most people buy it the wrong way. They think because they have bought their own home that know how to buy property as an investment and in the process they make some very expensive mistakes. They also limit themselves to what is known in the UK as “Buy to Let”.
In fact most people know only one strategy in property and that is market appreciation. Now don’t get me wrong the first flat I bought in Marchmont Road, Edinburgh in 1973 for £7,500 is now worth well in excess of £400,000, so appreciation is very nice when it happens. It is however not a reliable investment strategy as property will sometimes go down as well as up and if you know when for certain then please let me know!
Property Appreciation should be seen as a bonus to your activities in Property. What you need are strategies that you can use whatever way the market is moving. Apply this rule every time you come to do a deal in property:
Can I make a profit on the way into this deal?
Here is a list of strategies that providing you have worked the numbers properly will satisfy this rule. I have limited it to a dozen to illustrate the point but there are plenty more.