- I buy properties that appeal to owner occupiers, as (over the long term) owner occupiers make up the bulk of property purchasers and push up the value of certain types of property.
- I buy a property below its intrinsic value – that’s why I avoid new and off the plan properties, which come at a premium price.
- In an area that has a long history of strong capital growth and that will continue to outperform the averages because of the demographics in the area. This will be an area where more owner occupiers will want to live because of lifestyle choices and one where the locals will be prepared to, and can afford to, pay a premium price to live because they have higher disposable income.
- I look for a property with a twist – something unique, or special, or different or scarce about the property (you’re not likely to get that in a high rise tower), and finally
- A property where we can manufacture capital growth through refurbishment, renovations or redevelopment.
By following this 5 Stranded Strategic Approach, I minimise the risks and maximise the upside.
Each strand represents a way of making money from property and combining all five is a powerful way of putting the odds in our favour.
If one strand lets us down, I have three or four others supporting our property’s performance.
Michael Yardney is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy.