We had an overwhelming response from my last email and I want to thank everyone who took the time to get in touch with their feedback and in particular those who emailed me with their self stated “confessions” for why they haven’t yet taken any action in building their UK portfolio. I applaud your honesty.

Something that once again struck me is how many of you wanted to know when would be the right time to buy. So when is the best time to buy property? Over the years I have been asked this question again and again. I’ve been asked this when the market was galloping at breakneck speed with 15% increase in prices a year. I’ve been asked this when the market was flat and throughout last years “house price crash”. Yet my answer has never changed.

The best time to buy property is 10 years ago; the second best time is NOW. Today, right this moment as you read this sentence.

And yes – I will concede that such a bold statement could be interpreted as pure boiler-room sales talk. So let me explain…

First off I’m a long term investor which in my vocabulary simply means I look to hold my property for more than 10 years – maybe even forever.

I invest in UK properties because I think in ten years time they will be worth a lot more money than they are today. It really is no more complicated than that.

I also know that along the way, none, and I mean none, of my investments will go up in value in a straight line. In fact they will be all over the place, falling one month and climbing the next.

But as a long term investor I hardly pay any attention to short term capital gains as long as it keeps providing me with a monthly income.

Here’s a quick example: I bought a 2 bed flat in central London at the end of 2006 for 325k. According to a local estate agent the property was worth around 314k at the start of the year. So on paper I have made an 11k loss on my investment. But here’s the kicker – I’m willing to bet anything that as 2016 rolls to a close, that very same property will be worth in excess of 500k.

So my point is this – does the fact that there is a “loss” of 11k on paper in the short term really matter?

Of course not. Short-term is an issue of emotions (heart) and not fundamentals (head). So while it may not feel very nice having a property worth less than i paid for it, unless i sell at the reduced price it really make little difference to me.

You will always find a reason of why now is not the best time to buy. Your friends, family and those inclined to always offer “free advice” will be able to list a bunch quoting the latest newspaper headlines as justification. But those who succeed in this property game are those that can overcome this procrastination and buy.

Because the moment you say that NOW is not the right time to buy, you are actually saying that either, you don’t know what you are doing and therefore you need help or, you are saying that you suffer from analysis paralysis and need a kick up the backside to get going.

Either way you require expert assistance or further education. Luckily we can help with both so click here now and get in touch.

Wishing you health, wealth and happiness,

Mike Smuts
Property investor and MD of Smuts & Taylor.