House of Horrors

I went to view what loked like a "big monster" of a house on Friday. It turned out to be far smaller than it looked in the advert. The interior had sustained significant damage and it looked grotty and in need of significant re-fitting. As I looked out of a window, an airplane descended so low, and so loudly, I could see its undercarriage! It was very close to an airport. I made my excuses and left. If the price was lower, I could live with the airplanes, but my gut instinct told me the overall asking price should have been lower. Far from being a big friendly monster, the house was a horror.

I began to analyse the viability of flats and discovered that I could get an 8% return before tax, on some of these. Flats are less expensive than houses so the return is greater. As long as the leasehold is over 100 years, I'm interested. Flats are not freehold, which puts  a few people off, but you have to live within your means and buy what you can afford. The same principle should apply to investing. I checked Rightmove and found a decent looking 2 bedroom flat with parking for £115k. Rental should be in excess of £700. It looks like a new build flat, yet seems clean and effective. New builds have a bad reputation compared to older buildings, yet people still buy them, as it is all that many people can afford! As long as the price is right, a bad deal can easily become a good deal.

I remember when Mr Piper was telling me of his rise to multi-millionairedom. He said that  he was originally trying to buy his first properties in another area entirely, but when that deal fell through, he compromised and purchased properties in the high street where I first met him. He then expanded from there. He compromised on his original plan, and had to change tactics, but he kept on going. His success in property proves that if someone wants to be successful, no matter where they are or what happens to them, they will find a way to achieve their goal.

The property market has seen a few falls in value, but the problem is that its hard to get lending from banks.  In every type of market, no matter how difficult it seems, there is always an opportunity to make money. The Richest Man in Babylon says "Where determination is, the way can be found".