Manage episode 291060709 series 2342556
The COVID-19 has been the perfect example of why you should diversify your investment and property portfolio. If you haven’t already done so, join Mark as he discusses why you need to diversify your portfolio and how. Discover the importance of having multiple income streams, how no two recessions are ever the same and why having different tenant types can help save you from losing everything.
- It is really important to focus and be specific about your investments. Become a specialist in a couple of areas but as time goes on, as you begin to make money and master different strategies you will need to protect your wealth. To do this, you will want to diversify into different areas, spreading your capital ensuring you have multiple income streams.
- By having mortgages and real assets such as properties or equities like hares in businesses, as inflation rises so will their value. This is a good hedge to diversity risk and to reduce the risk of inflation eating your capital away.
- The Coronavirus pandemic has been the perfect example of why you should diversify. As time has gone on, it has become clear that serviced accommodation in certain areas of the country has suffered greatly. This does not always mean that serviced accommodation will never come back. The next time there is a recession, another industry will be hit. This is why you should always make sure you diversify your assets.
- The key is to have different tenant types. Different tenures that may or may not be affected by current world events such as the pandemic, Brexit or the recession. In the future, a new ‘shock to the system’ will come along which you cannot foresee and different industries and property types will be affected. If you have invested in a few different properties and businesses then you are likely to be okay.
- If multiple big things happen to you and your business at any one time, then there happens to be a recession and you are not diversified, then it may end up killing your business and you may go bust. We want to avoid that at all cost.
“Become the best at just a few small things.”
“I always like a minimum of four income streams.”
“Is this going to go on into the future? No..”
“We have had a deep recession and we are in one now.”
ABOUT THE HOST
Mark has bought, sold or has managed around 1,000 property units for himself, Rob, his family and his investors since 2003. He is a system and spreadsheet geek and has developed a complex, confidential deal analyser system of buying residential, commercial and multi-let properties.
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