A simple fact: nothing in life is risk free.
But some things are less risky than others, whether that be on an absolute measure or a relative measure.
Some things have risks which are easy to understand.
Some have risks which can be straightforward to mitigate.
Some things are so risky we should leave well alone.
Some things have some risk, but are still attractive.
I could go on and on, but I won’t.
The point I want to make is that by some measures Buy to Let is not the lowest risk asset available.
But on many measures the benefits of ownership far outweigh any possible risks.
Obviously, this is not financial advice, just my opinion.
Having said all of that, sadly I see two equal and opposite, and both wrong, attitudes to risk, especially when it comes to new would-be buy to let investors (and even some old hands are guilty of one or the other too).
The first is to think there is so much risk that they can’t do it. Usually this is fed by the media, friends in the pub, well meaning but mis-informed family members etc. The result is fear, and the cause is often ignorant generalisations and inappropriate negative hype.
The second is to assume there is no, or very little risk, and to steam on in without doing any research, or even thinking about what they want to achieve, what the best way of achieving that is, or which property best fits with their needs and wants.
This can lead to buying the wrong property in the right way.
Or buying the right property in the wrong way.
Or, most likely, buying the wrong property in the wrong way.
None of these combinations work, and all increase risk to the investor.
Anyway, I’m going off on a bit of a tangent.
In this video I look at some of the risks in owning a buy to let investment property, because we will never get rid of risk altogether, but we can reduce it.
And we can reduce it to a level where I, for one, think the risk is worth taking.
Here’s to Successful Property Investing.
(ex) Chartered Surveyor, author and property investor
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to: