The economic doom circling the global news channels is starting to feel a touch worrying.My left eye has developed a twitch and I've started to suck my thumb at night, like a big baby!
The reason is we just can't predict how bad things are going to get, nobody knows, and the economic lies that governments and banks have told us already may only be the start of it. We are talking BS, distraction and cover ups at the very top of global government, we don't know the truth yet. ( I love the drama of conspiracy theorists, don't you? )
Personally I'm not looking to increase my personal financial risk, uncertainty scares me, and I've been battening down the hatches, so to speak, over the past few years. I've done okay and I just don't want to end up losing it all.
I know many landlords have continued to invest, and good luck to them. With decent rent increases and low mortgage rates I can see the financial argument for it. But, I'm still nervous about gearing up any further.
I remember talking with a letting agent when I had bought one of my first rental properties. He thought that I was daft buying the house, saying that he predicted that prices were about to slump again.
It transpired that the guy had lost a £3 million pound property portfolio ten years earlier and was as highly strung as a rabbit in a field full of stoats when it came to property investment. My property subsequently tripled in value over the following years thanks to what turned out to be one of the UKs biggest ever property booms. However that's not to mock my letting agents extreme fear, it stemmed from an very real and painful personal experience and not from some illogical nervous condition, he had been badly hurt when economic conditions had moved suddenly against him.
In many respects I am starting to understand his caution. Personally my nervous twitches reflect the fact that property investors still haven't felt any real pain yet, unlike my poor letting agent.
I know we've seen a drop in capital values in some areas, but the ridiculously low interest rates have kept off any real injuries and rent increases have actually made things work out quite nicely for most landlords.
I have a sense that this won't last forever, so for now I will continue to sit in my burrow. like a scared little bunny.
For those landlords who continue to run around the field don't be surprised if a hawk doesn't swoop down and eat you up. Live today as if it is your last.
Bright eyes....................
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Thanks for echoing my thoughts entirely. Property values would need to fall a lot further before I feel any pain, and even then it's Only if I am forced to sell which is not likely with the present low interest and high rents - Long may the income continue! As for increasing both my portfolio and gearing I would simply be falling back into the hands of the banks with their kneejerk reactions and 5-minute policies.
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