Investing In Uncertain Times.. Covid / Ukraine…
Published by Jacob Field on 3 May 2022This is about providing a buffer.
A rainy day fund.
The types of properties that we buy, 350 to 450 to 480 is our current sort of target zone sort of 400 – 480 possibly as of today, this is a sweet spot that’s very affordable.
If we were to have world war three, all of these things going on, guess what?
You’ve bought well, you’ve done a renovation, you’ve value added, you’ve lowered the maintenance, you’ve increased your yield, lowered the vacancy rates, increased the rent, you’ve now got a wider tenant pool interested in this property.
When things occur, covid, Ukraine..
..people might stop buying and they might move to the rental side of the market.
We’ve got stock there where they need it.
We’ve got a recession proof type of asset.
Very affordable.
So even if there was to be a world war three type scenario, we have a property that is very set up to perform in these environments.
You might not have the growth, but you’ve made money three other ways.
You’ve been paid to hold that asset because you have more people coming from the buy side to focus on renting properties and then your rents hold through uncertain times.
So this is about buying types of assets that really do give us that baseline, that foundation.
Things might occur that are not according to plan, but then we have that foundation and when they really do start firing again, it does well and truly catches up.