The Big Fat Property Lie

I watched a programme on TV last night called "My Big Fat Property Fortune". I don't watch a lot of TV but this programme caught my eye, it was supposed to be how these incredible people had made their fortune from property. WHAT A DISAPPOINTMENT.

What the show consisted of was a bunch of people that had made their money from property mainly through luck and good fortune rather than their business acumen. There were a few exceptions to this, must notably, a husband and wife team whom I have seen a couple of times before, they own over 700 properties that are worth in excess of 170 million. There is no disputing that this couple are worth a fortune and that they continue to rake in a fortune from property.

The problem I have with this show and others like it is that it is not realistic and truthful. Let me explain myself. Yes, there is no doubt that this couple have made an absolute fortune years ago, mainly by the sound of it by buying new and off plan properties. However what is not taken into consideration is the changing housing market.If this couple started today and did exactly the same thing all over again, the results would not be the same, in fact they would probably end of being bankrupt quicker than you can say "Jack Rabbit." It was a different market when they started investing and so many novice investors (or hopefuls) will have watched that programme and thought yes that is how I am going to do it.

The key with making money from property is knowing your market. Knowing whether it is the right time to buy off plans or to buy old houses etc. You have to give the property market and it's current condition due consideration and respect, many would be investors and developers get into financial difficulty because they haven't taken this into consideration. Exactly the same money is still out there to be made, you just have to adjust your strategy to make sure you are making it in the safest and most profitable way possible.

Carlton Johnson

http://www.UKPropertysuccess.com

Is your house really an ASSET?

Would you class your home as good debt? Well, countless people might, but the reality is, it isn’t. Good debt is normally only found when you have invested in an asset. What is an asset, you say? Well, there are several definitions depending on who you speak to, but I think the following sentence epitomises it well: it is something that appreciates in value and/or can provide you with passive income, that pays for itself, and doesn’t need you constantly putting money into it.

So, what is good debt?

Good debt is debt that you have incurred by purchasing an asset that appreciates in value and/or can provide you with passive income that pays for itself, and doesn’t need you constantly putting money into it.

In this vein, your house could not be classed as an asset, because you live there and you have to pay the mortgage yourself through other means i.e. through working at your job for a wage to pay the mortgage or through the money you get from other assets. And even if you have paid off the mortgage, you would still have things to pay on the house, such as utility bills, council tax, repairs etc. So you will always need to have some income from some other means in order to finance the upkeep on your home.
Food for thought?
However, maybe you could class it has a sleeping asset ready to be realised whenever you choose to cash it in or remortgage? Well, maybe.

Invaluable Free website for property investors

There are a few key changes within the law that are coming into effect this year. One you don’t want to forget about if you are a property investor are the changes to Tenancy deposits, which comes into effect today (April 6th). If you haven’t already got it in your favorites on your computer then it might be useful to put the web address below there now, as it has many useful update as regards to property and it contains all the info – or links to all the info – you need to know as regards to tenancy deposit.

http://www.communities.gov.uk

For more info on all aspects of property investing you can go to my website at:

http://www.ukpropertysuccess.com/

Regards Carlton

(Author UK Property Success)