With the New Year just around the corner we wanted to give you our take on how to approach property investment in 2020 and beyond. The past 12 months have been pretty uncertain with all of the speculation over Brexit.
The gloom and doom merchants have jumped on the Brexit bandwagon suggesting that property investment is dead or that the returns are not worth the risk. Neither of these things are true of course.
But all of this uncertainty and pessimism has resulted in a lot of UK property investors being concerned about making investments. Some have been waiting for decisions on Brexit. Others are just generally nervous. Some investors just got on with it and got involved in projects with high returns.
It is Natural to be concerned but…
With all of the negativity and uncertainty that has been swirling around in 2019 we totally understand that you may be concerned about your future investments. Even we have been a little worried at times.
But if you spend too much time over thinking everything then this is going to overwhelm you and will prevent you from making a clear decision when you are looking at different property investment opportunities. It can lead you to doubt your own ability in the market even if you have many years of experience.
We know a number of property investors that have refused to get involved in opportunities because of all of the uncertainty. These individuals saw investment opportunities that we believed were not that risky, as very risky. All of the negative headlines in the property market swayed these people.
On the flip side a small number of UK property investors, including ourselves, did very well in 2019. They were able to find opportunities with great returns that others could not find. These investors used a number of different ways to uncover really golden opportunities. They ignored the uncertainty and pessimism and made a killing.
So what can you do if you are feeling nervous about UK property investment going into 2020?
Focus on Reality and ignore the Hype
You need to be a savvy property investor in 2020. This means that you can see your way through all of the hype and concentrate on the facts about the market and any opportunities that come your way. Experts in the property market are not always right with their predictions – in fact some of them have been way off in the past.
We recommend that you take a long term view. Make a commitment to improve your education in the New Year so that you are able to find those golden opportunities more easily. Follow the best practices of other savvy investors that make successful investments regardless of what is going on around them.
At CGP we do not believe that Brexit will dramatically affect the UK property market as much as others think it will especially if you take a long term view. History tells us that the market is usually pretty resilient and there are opportunities whatever the market is doing.
Diversify your Investments
If you have a number of properties in your portfolio and you have a long term strategy then any dips in the short term will have minimal impact. We do not recommend that you look for short term gains all of the time. If this has been your strategy to date then we suggest you rethink it.
We want you to have a positive outlook when it comes to property investment in 2020. Believe that there are good opportunities available and go and find them. From all of us at CGP we wish you a happy, healthy and prosperous 2020.