X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Property-a-holics

    Can your mistakes be forgotton in a rising market?

     

    We are all conditioned by the wonders of buying well below market value in the current climate, but what are members thoughts of strategies to adopt in a rapidly rising market?

     

    Is BMV still important in a rising market ?

     

    Will buying at market value turn into a BMV purchase by the fact prices are rising so quickly, so is BMV really relevant?

     

    Will it be difficult to tell what is Market value and what is BMV property in a rising market?

     

    Can your mistakes be forgotten then by buying at market value in a rapidly rising market? Would love to get thoughts on strategies (if any) in a rising market.

    0
    0
    Great question Fernando.  SmileI think your mistakes can be forgotten in a rising market, but you will be reminded of them BIG TIME in a falling market!  They will be like pigeons, and come home to roost!  They may also be like a dog, and bite you on the bot.Anyone can make money in a rising market.  When the market falls, it like that saying along the lines of "When the tide goes out, you find out who has been swimming naked".  The tide is still going out in my opinion. 
    0
    0

    OMG,

     

    Whilst reading your post (which I agree is a great question) I had mentally formed my initial response which was

     

    I think your mistakes can be forgotten in a rising market, but you will be reminded of them BIG TIME in a falling market!

     

    Vanessa beat me to it!  

     

    Buying at the lowest possible cost, ability to add most value and multiple exit strategies are always important and imho should be factored into every deal. Hypothesising on specifics relating to these criteria is extremely difficult.

     

    I know however that you have sent me a message off forum with some specifics and I shall endeavour to reply today.

     

    RobCommercial Management & Property Consultant, Wakefield, West YorkshirePlease visit my website, read the property blog & leave a comment; https://www.walkerfox.co.ukE: rob@walkerfox.co.uk M: 07960 753550 T: @walkerfox S: Walkerfox

     

    0
    0
    I came across this great question while looking for something else.

    It dates from February 2011.

    In view of the fact that we are in a rising market now, I thought it would be interesting to bring this question back into play ....

    Will the rising market bail out zombie landlords?

    Will that old saying "A bad property deal is like a bad haircut - it will grow out in the fullness of time" be proved right again?
    0
    0
    It depends on the mistake. Is it a mistake to 'overpay' and then hold for 100 years?

    What does it mean to overpay? As each transaction is different it is hard to really know what the absolute 'right' price is.

    If someone buys for a price they think is fair, they service any debt that they might employ in the purchase and then they sell for a profit (as defined by their tax return), does it matter?

    Like a bad haircut, it will get better over time. Just avoid too many photos of the haircut and stop looking at what you paid. Focus on the results, not the inputs after it is too late to change the inputs.

    Note: You should learn from your mistakes and improve your average over time.
    0
    0

    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.


    This is a great question and worth thinking about in the current market conditions.

    Does anyone have any other thoughts?
    0
    0
    Property is very forgiving of mistakes over time
    Even if you buy at market value with a 75% LTV mortgage and don`t rent it out you can more or less break even over say a 20 year period
    Test it on your residential.
    It works on mine

    Imagine in addition you actually put a tenant in, add value and buy well.
    It means your investment works for you even better.

    So yes I believe property can be very forgiving of mistakes in all markets not just a rising one as long as you keep it for the long term.

    Acquire property and hold.
    .
    0
    0

    Jonathan Clarke. http://www.buytoletmk.com


    Buy as low as possible however as long as you can cash flow through rising interest rate rises property will pay you back and more..it's just a matter of time the challenge is when and as we get older time becomes more valuable . I would have a mix of higher yielding properties and some probably a third of middle level houses which will have better growth but lower yields the nature of the beast or challenge...don't wait to buy property buy property and wait..Well known saying but so true I would just add as long as you can pay for it in lha dss houses allow 6 months mortgage payments just in case as sometimes it takes time to sort back payments best to have a plan than non at all
    Kim
    0
    0