Should we increase our residential portfolio, but then potentially expose ourselves further to what some see as a potentially faltering recovery in the housing market. Should we look abroad for countries that are not as economically shot to pieces as the UK is. For instance the emerging countries of China, India or old school more prudent countries such as France or Germany.
Potential opportunity
Sure enough as I was pondering my investment strategy but what pops down on my door mat but a letter from a very posh sounding outfit with offices in London inviting me to invest in land.
Now I have no knowledge about this particular firm and they may be a legitimate outfit potentially pedaling very good, sound investments. They have a website and an impressive address, but as many investors have found that does not always account for much.
Beware of the investment 'middle men'
What always concerns me is companies that make money out of selling investments. Middle men such as BMV sourcing agents or before them the buy-to-let investment agents. The problem for me is how can you get good advice from companies and businesses that make money out of selling you investments. Off course they will tell you it's the best investment you will ever make and that as an eager investor will be just the music you want to hear.
Investing in land can be a great long-term investment and land values have certain taken a pounding over the last few years as the value of commercial and residential property has been hit. Force selling by house builders and other property companies has meant that land values have seen dramatic falls, especially in or around city centres as a result of the fall out in speculative buy-to-let apartment building.
Never buy land without planning permission
Never buy land without planning permission unless you know what you are doing because you are likely to end up with something that you can graze sheep on and that is all. We saw at the height of the property boom the scams of companies trying to sell worthless bits of agricultural land as potential development land.
The essence for all landlords and property investors as we approach a new decade is that there will be some great investment opportunities for those who are prepared to do their own sourcing and their own research. In my mind the lessons learnt from the naughties are that you can't depend on anybody, governments, banks, so called institutions and if an investment looks too good to be true it sure as hell is!
So landlords when making your investment plans for the new decade. Make sure you know it's a good investment not 'think you know' before parting with your cash.
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