One of the most useful newsletters that lands in my inbox regularly is Money Week’s Money Morning newsletter.* After reading it I feel more informed about the economy and investing, though not necessarily more upbeat. Much as I enjoy reading the writers’ comments, they are frequently a bear-ish bunch at the moment.
Which is not necessarily a bad thing. A bear-ish outlook can lead to caution.
One of last week’s newsletters – Get ready for a fresh slide in British house prices – discussed a property correction. No surprises there really as there are quite a few press rumblings about corrections in the property market. What was more of a surprise perhaps was that this particular article, despite the title, referred to the property market in London.
UK Property: There is Life Beyond London
I hope it won’t be too much of a shock to learn that there are property investors who live and invest beyond London and who do not rely on the performance of London property.
It is likely that the investors targeted by the Money Morning newsletter are of a higher ilk than myself, with far greater funds to invest at their disposal than I have. That said, it is possible – and there are many property investors in the UK who are proof of this particular pudding – who not only succeed in investing in property, but also in making a living from it without having any recourse to the capital (sorry, couldn’t resist that pun – I am of course referring to the capital city as opposed to the financial variety).
In other words: there is life outside London.
Capital Growth or Cash Flow Strategy?
The other thing to keep in mind is that investment advice and newsletters of this type, when they talk about property, often focus on the potential for capital appreciation. A large number of landlords invest in property for income. Just like shares – some invest for growth, others prefer to look at the yield.
It all depends on your personal strategy.
* The link to the newsletter signup is purely for your convenience. I do not gain in any way if you decide to subscribe.