“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”
Winston S. Churchill
Motivation Monday - Richard's Insight
I guess if you were anything like me, you may have woken up to quite a shock on Friday morning after the UK referendum result confirmed a vote to leave the EU. I think even many leave campaigners and voters may have been shocked, despite their opinion and stance. The bookmakers were certainly caught out this time, which is unusual.
So, we may all agree that we are in shock, or at least surprised by this result then.
Since then, I have seen lots of talk from politicians within the UK, Europe and the rest of the world about the consequences and what people want to do now and whether the UK will suffer or prosper as a result. I have seen social media go into a frenzy with people on both sides of the campaign getting stuck in as well.
Whether we will invoke Article 50, sooner, later or not at all is still a question to be fully answered. So, as professional property investors, what should be our position?
My response - be optimistic and look for the opportunities.
There will be lots of confusion. There will be people claiming the sky will fall in. There will be people rushing to escape what they think will be a terrible place. There will be ostriches burying their heads in the sand. There will be uncertainty, fear and doubt. There will be volatility in 'the markets', especially the forex and stock markets. But equally, there will also be opportunities.
Let's get ourselves ready then...protect the downside, whilst maximising the upside.
Be an optimist and look for those opportunities. How may they present themselves you may ask; here are some ways I can imagine:
- Reduced buyers and lower transaction levels as average Joe Public and Ann the Amateur Investor sits it out.
- More motivated sellers as some panic and try to escape sooner than later.
- Undervalued assets becoming available to buy, particularly when the inherent rental yields bear up.
- Relatively unchanged national fundamentals in the housing market underpinning demand for housing (both to buy and to rent) with a structural a shortage of supply.
- Some short-term micro market price falls, such as London.
- Opportunities to acquire property using creative contract and financing techniques, such as vendor finance and options
Those ready to seize these opportunities will be those able to move quickly, see the wood for the trees, have several exit options available, being creative in their deal structuring and most of all...be optimistic, without being reckless.
Yes, it will be difficult for the next few weeks, months and even a couple of years...but it will also present a great opportunity for those ready, willing and able to move against the tide.
Be brave, be deliberate and be optimistic 🙂