Even though many people are happy to stick with property investment strategies they have used in years gone by, there is a need to constantly expand your knowledge and your experience. Investment strategies which worked 20 years ago may not work as well today and indeed many of them may have been replaced by more modern investment ideals. So, how should you expand your knowledge of property investment strategies while maintaining a focus on what you know?
Listen to the markets
You can pay thousands of pounds for investment advice, you can read the latest books but where would you find the most up-to-date information and investment signals? Well, if you listen to the property markets around the world they will tell you what is happening and how to benefit- really?
Investment markets are information exchanges
The very basics of investment mean that for every buyer there has to be a seller and vice versa – wealth is not created simply transferred. We have all heard the sayings from investment gurus who have made a living off their investment strategies. So where do they gain their experience and their knowledge?
The simple fact is that local and worldwide property markets are in their most basic form simply information exchanges. These are arenas where buyers will chase prices higher, where sellers will hold on for the best price and where trends and fund movements are very visible. We are not suggesting you should always chase the latest trend, the latest investment strategy but you will gain immense knowledge from learning how to read the markets and information which comes directly from investors.
The trend is your friend
The trend is your friend is a popular saying from those who invest in the stock market and monitor individual stock prices. In many ways stock markets are information exchanges in their purist form because they react within seconds to news, assumptions and rumours. The property market is slightly different because it takes longer to buy and sell properties and very often trends will take a little longer to emerge. However, you can learn a lot by watching the latest trends, when they peak, when they trough because these patterns will repeat themselves time and time again.
The property market perhaps more than many other investment arenas is one where hotspots can emerge and then once profits have been taken they tend to consolidate at lower levels. We saw this with the Dubai property market which went from strength to strength, prior to the US mortgage crash, collapsed, then slowly but surely clawed its way back to where it had been. Even though many investors ditched Dubai when the market turned it is a very different animal today than it was at the turn of the century.
There is nothing wrong in sticking with investment strategies you are more familiar with but if you want to make a good long-term return you should look at moving with the times. Some of the modern day investment strategies are hybrids of other strategies from years gone by with a twist. There are new ways to raise finance, there are ways to hedge your bets and there are ways to maximise your returns. Knowledge is power in the investment arena and the more knowledge the more power and more chance of a successful long-term investment career.