Property Archives - Scott's Thinking

Property Can Make You Wealthy

Posted on April 2, 2022

Prices can make your mind make funny justifications. It’s not prices on their own though. It requires your bias and your emotion. And without thinking, you can end up on the wrong end of the stick.

There are many reasons not to own an investment property. People will share these with you whether you ask or not.

But a property in an area that is reasonably desirable, or is likely to continue to grow, can be an excellent investment.

For example, in the UK, property tends to double in value, on average, every 10 years. So, if you buy a £600,000 property with a £450,000 mortgage (75% loan to value), it should be worth about £1.2 million in 10 years and £2.4 million in 20 years.

Imagine that. One property that you put £150,000 down on as a deposit, could be worth about 4 times it’s current price in 20 years. That would leave you with nearly £2 million in equity.

That’s more than 10x on your money. You may also have received some rent in that time period too. Add that into the mix.

Now imagine that one property helped you buy two more at £800,000 on the 10th anniversary. And they went up similarly. And their mortgages stayed static. You could have about £4 million in total equity after the 20 years. Just three properties could change your life and whole financial circumstance.

Think it through. Or ask. But make it work for you. Because property can make you wealthy.

Action Gratitude Health & Fitness Property

Open Up And Say Ahh

Posted on July 2, 2021

Our corner of the world is getting better. Lockdown and restrictions are lifting and almost gone. We can open up and say ahh.

We did that Thursday night with our monthly property meetup. The first Thursday of each month we organise an opportunity for property investors to join together to meet and chat. It was a lovely evening on Richmond Green. We had donuts to celebrate Canada Day and also Alan’s birthday on the 4th.

It was a great evening outside. We could buy drinks at The Cricketers, where we’ve been holding the meetup for almost 5 years. It was so nice to see many other groups on the Green. Short sleeve shirts and some shorts were common. I did not see any masks. It all started to feel rather familiar.

That was the second consecutive property meetup we’ve held in person. It was a nice change to our Zoom calls. They had their pros and cons, and so do the in person gatherings.

I’ve seen the future and I think you are going to like it. It looks similar to 2019. In the UK we are due to open up fully on the 19th of July. It could be quite exciting. It is only 2.5 weeks away. Most children will be out of school by then or by the end of that week.

Open up and say ahh.

Property Reframe your thoughts Think About It

Property Perspectives

Posted on January 24, 2020

How do you decide what is most accurate? There are so many different views on property. This is mostly because there are so many different people with different experiences. People, generally, will find what they are looking for. If they don’t like renting, or landlords, or banks, they will find ideas and data to back up their perspective. And if a person likes investing, DIY or moving around a lot, they will find data and ideas that will support those perspectives.

However, let’s ignore, for the moment, all of the opinions about property that are being expressed these days, based on the current situation. Remember to take things back 200 or even 500 years ago to get some real perspective. 500 years ago, people used houses as shelter, to protect themselves from the elements.

I would imagine most people, save for the hardened cynics, would agree housing is better now than it was 500 years ago. Electricity, heating systems, indoor plumbing, fresh running water, television and wi-Fi to name just a few modern miracles.

Preferences for owning your own property or renting one, is based on emotion and your desires in your imagined perfect world. But when it comes down to the very basic idea of having shelter from the wind, the rain and the cold, you probably wouldn’t care too much about the mechanism for having access to that property.

Have a look at this video put out by The Economist a couple of days ago. Try to watch it unemotionally. There are quite a few comments and points that could be debated. See if you can challenge your own perspectives and see the other points raised.

Think about the points you have been programmed to agree or disagree with. Think through the alternate view and try to own that view, if just for a minute.