16th May, 2013 BACK TO ALL PODCASTS

This week we’re putting our usual puppies and rainbows into storage and turning our attention to property disasters. You’re not going to get through your investing career without something doing wrong, but how can you decrease the odds, and what should you do when something does knock you off track?

From speaking to new investors, we identified the five most commonly dreaded catastrophes – and one that left us uncharacteristically speechless…

1. What if I can’t rent my property?. No tenants means no rent, so it’s a concern worth having. We remind you to focus on the fundamentals when buying to make sure demand is strong, then know what action to take if no-one wants to make your investment their home.

2. What if property prices fall? If you’re investing sensibly this is at worst a non-issue, and at best an opportunity – we explain why.

3. What if my tenant stops paying rent? Prevention is better than cure – a bad tenant is worse than no tenant – but if you make a bad call, all isn’t lost.

4. What if my tenant trashes my property? The prospect of a big repair bill is a common cause of sleepless nights, so we discuss how to avoid being out of pocket. We mentioned Landlord Referencing as a useful preventative step.

5. What if my property falls apart? A relatively new property that’s still under guarantee might be best if this is a big worry, but there are other ways to mitigate your risk.

6. What if my house gets hit by a comet? Yes, this was one investor’s serious concern, and you’ll have to listen to the show to find out what we advise…

Resource of the week

This week, Rob B recommended Check My File as a free tool to check the credit rating of a potential investment area, and compare it to other locations.

This week’s news

The Daily Express are at it again, predicting that house prices will rise by 30% in two years. We read between the lines to extract what we think is the real good news story.

And following up on Episode 5 on choosing a letting agent, we mentioned that there are now proposals to give formal redress to the victims of shoddy agents.

Mentions and shout-outs

Pete Matthew from The Meaningful Money Podcast got his voice on the show this week, and gave The Property Podcast a big thumbs-up in his episode about asset classes. We’re very excited to be appearing on Pete’s show soon!

We were also delighted to announce that we’ll be featured on the Entrepreneur on Fire podcast in the coming months.

Tell us what you thought of the show!

Have you had any property disasters you want to warn other listeners about?

Did we miss anything out, or was there a part of the show you particularly enjoyed?

Just let us know by leaving a comment below!

If you enjoy The Property Podcast, please leave us a review on iTunes

Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive.

If you’d like to hear your name on the show, leave us a review on iTunes here. Not sure how to do it? This video shows you how to review and subscribe.

Full transcript

Ric:                                         Welcome to the Property Podcast! The home of news and debate about building long term wealth from property investment for beginners and experts alike.

And now for your hosts, they may not be as cool as me, but they do know their property. It is Rob and Rob!

Rob B:                                   Welcome to the Property Podcast Episode 9.

I am Rob Bence and with me as always is Rob, the property geek, Dix.

How are you doing, Rob?

Rob D:                                   I am very well, thank you. I was going to say “ola” but I think I will drop my European version best from now on. I am joining you from Madrid this week.

Rob B:                                   I am sounding more like a boxing commentator every time I start this show. I have to be aware of that. I think it is Ric’s influence. His move tone’s has got me more like that.

Rob D:                                   Well, the debate rages on.

Rob B:                                   So Rob, what do we have coming up this week?

Rob D:                                   Well, this week, we are half emptying our glasses.

We are going to focus on property disasters, talking about truly terrible things that can happen to you in your investing career. You do not always need to worry about that because we are always and going to tell you what to do about them.

If you stick to the end, we are going to share a resource that might just become a vital part of your property research process.

Rob B:                                   That is a great resource and I use it on a weekly basis. I do use most of these resources. Make sure you have a lot of resources and it is free and easy to use.

Rob, as always, we want to pass on our thanks on our podcast reviews on iTunes, the people who have been kind enough to go there. A round of applause to the following people please.

First of all, Kath says, “great content, informative, and quick-pace. Keep up the good work!” Thank you Kath!

Benjamin says, “I am looking for an investment with my heart and cash and this podcast was a solid gold find! Thanks Rob and Rob! I will be following your advice.” Thank you Ben!

Matthew says, “excellent podcast!” Thank you Matthew!

Franz says, “it is very useful and very engaging. I love that you do not preach to your audience, but collectively, you bring the podcast to an objective light. Property investment clearly is not a one-size-fits-all approach. I find the resource of the week particularly useful. Keep up the great work!” Thank you very much Franz!

Finally, what a review this is. This is from Nemesis888. Nemesis says, “I wish that this podcast had been available when I started property eight years ago. In my experience, things can go wrong rapidly and expensively wrong. If you listen to the wrong advice and blindly venture to the property market, thinking you are Brandon or Sugar. Thanks Rob and Rob! You are too late for me because I have already gone from hero to zero but your sound advice will assure the next group of investments to start in a much firmer foundation thank I did.”

Wow! That was some review. I spoke to Rob before the show and Nemesis, if you are listening, we would love to create a show around your experience so people can learn from your mistakes and you can help few people to proper investing and hopefully this episode will be a start that and would help a lot of people avoid few mistakes.

We were quite blown away by that review. Right, we were Rob?

Rob D:                                   We were. We are always worth being reminded that property can go very wrong if you listen to the wrong people. I would say that property disproportionately attracts people who can say that you are on a wrong direction but I suppose anything where lost of money’s slushing around attracts people who might have the best intentions.

We were very sorry to hear that you have been bitten by something like that and not have the best experience.

The more of those stories we can showcase, we can make more people aware of the importance of doing your research and make sure your approach is sensible. Property is fantastic if your approach is the right way.

Rob B:                                   So Nemesis, if you are listening, please get in touch. We would love to hear from you. Even if it is in a recording, or through email. Whatever is the easiest, you can get in touch. We would love to hear from you.

Rob D:                                   Well, let us move on then. Let us talk about the news for this week. We have a couple of great pieces Rob, don’t we?

Rob B:                                   Massive pieces of news. Entrepreneur on Fire.

In the recent podcast, I mentioned that I was listening in the garden to Entrepreneur on Fire and a couple of interviews there. Now, for those who do not know, it is a massive podcast. They get quarter a million listeners every single month. We mentioned on twitter that John Dumas, the presenter, we mentioned him on our episode and then he got in touch. Didn’t he, Rob?

Rob D:                                   He did, which is just amazing. Everything that we are mentioning is coming true at the moment. He got in touch with us who is amazing and we are both going to appearing separately on Entrepreneur on Fire in the next couple of months. We will be each telling our own story in property and out of property. That is absolutely fantastic for us.

Rob B:                                   We cannot wait and we are really excited about that. Now, it is a few months away because the [0:04:31] of Entrepreneurs, they have lined up a substantial and it is a big podcast. When it comes around, we will certainly let you know. We are probably looking at July or August when that happens. But we will definitely let you know when that comes about.

We have also heard from Pete Matthew. Pete, who runs the Meaningful Money podcast, which is a great podcast, we mentioned in Episode 4 was kind enough to leave us this recording.

Pete                        :             Hi Rob and Rob! This is Pete Matthew from Meaningful Money and the Meaningful Money podcast. Just wanted to say a quick thank you for the mention on Property podcast, the great review that you gave me, and also for taking the time to leave a review on iTunes as well. It really is massively appreciated and it got me thinking actually that I would love to have one or both of you on Meaningful Money podcast because you have inspired me to do a session on Property Investing. I will drop you an email perhaps as well and it will be great to perhaps talk to you on a dialogue and it will be great if you guys will be willing to do that. Thank you again very much. I really appreciate it. More power to you and all the very best for the Property Podcast and it sounds to me that it is going great from strength to strength. Cheers!

Rob D:                                   Wow! That is very generous of you, Pete! Thank you very much. We would love to join you. Wouldn’t we Rob?

Rob B:                                   We would. Again, I was really excited to be on it because it is a podcast that I really admire. I really got turned to it when Rob mentioned in back in episode four as the resource of the week. I thought of listening and I have never thought about using a financial adviser before. I thought I could arrogantly do it all by myself. But listening to Pete have made me realized what an important role having a financial adviser can play in your investing career. I really like the way he gives you great information. He gives you [0:06:07] advice and if we can go there and share what we have to say with his audience, it is going to be great!

Rob D:                                   We will be certainly taking up Pete’s offer. We will let you know when our recording goes out. He recently released episode 10 and he gave us a very kind mention there as well. So make sure you pick up that recording, we will play it on our show and we look forward to those upcoming interviews and podcasts.

So news of the week! Rob, we have got all good news.

Rob B:                                   Once again, we’re this on the Daily Express. We have to be careful about this.

Rob D:                                   We are probably on the most extreme side of optimism when it comes to property but they do have a good headline. Daily Express apparently Rob, I see 30% property rises in two years!

Rob B:                                   I am personally going to rush out and buy everything I can find this week because in two years, I will be guaranteed to get an extra 30% on it which is brilliant. Who would have thought that with just a vague piece of legislation, that has not even been properly outlined yet, could cause this huge boom.

Rob D:                                   I say that by the end of this podcast, go and buy a property and enjoy your rewards. It is a little big sceptical. 30% in two years, it is not going to happen. I would love it to happen because I will be a lot wealthier but I cannot see it happening.

The reason why we brought this news piece to you is not to mock you but really just to highlight how many good new stories are coming out about Property Investment. It gained momentum since the podcast begun strangely enough. I do believe that we are now going to see property prices going up over the next few years and I am confident enough to say that. The reason why is confidence is a massive part of it and if it means it keeps telling people of what properties are going to go up, it becomes a self-fulfilling prophecy. It is more likely to happen. I do think property prices would rise over the next two years. I am foolish enough to say that but about the 30%? No way near. But a raise is a raise, I will take it.

Rob B:                                   Rightly or wrongly is up to you but it does feel that the media and the government are doing their utmost to talk market back to a state back of activity. As an investor, I would say that it is going to be good news for us. The reason here is it feels like that the only people that actually been selling are those who have to sell very quickly. This theoretical means that there are lots of bargains around but it also means that anyone not desperate is just sitting out and there not that much to pick from. From an investor’s point of view, it means if there is more activity in the market, more people are buying and selling and it means it is easier to get comparable evaluations that you try to get. It will be easy to pull off but to sell using your technique and hopefully with sellers coming back in the market in a really realistic state of mind, it means we will have more deals to pick from.

I do not know what will happen to prices but it does feel like everyone’s trying to talk the activity back. As an investor, it is great news.

Rob D:                                   We cannot argue with that.

Rob B:                                   The other piece of these that I wanted to mention briefly is that we were talking a few weeks ago about how to choose a leasing agent. One of our big complaints was that leasing agents are unregulated. It is a totally unregulated sector. Anyone can set up as well and that it still the case, yet there are some new legislation proposed that will bring some form of regulation to the leasing agent. Essentially, it seems to be the case that anyone can still set up as a leasing agent and it will be like a sort of formal address if you get treated shortly by one. It is still a little bit vague but it is not something that we are going in to great detail and will put on notes linking into a new story about that so you can read more about the latest development with leasing agents.

Rob D:                                   Let us move on then to our topic of the week which is property disasters. It was motivated actually by an iTunes review we have got from a listener who said that he wanted to hear from us more about the negative side of Property Investment as we heard from Nemesis. There are negative stories out there.

We want to be responsive to what you want to hear so we wanted to cover it. If there is anything else that you want us to cover, do leave us a comment or drop us review and let us know.

We try very much in the show to be balanced. We never suggest for a moment that investment is easy money or risk-free or anything like that. We are just naturally optimistic and enthusiastic about property because we love to set there and we are fascinated by it. But also because even if we know that there are all these setbacks that we are going to talk about and you will inevitably hear one or two of them along the way at some point, property is a phenomenal investment for the long term. But, were going to focus on some of those setbacks and most importantly, we are going to tell you what to do about them.

Some of the things you can do proactively to reduce the chances of some of them happening and some of them when the worst happens, you know what to do about it so you will not be putting least sleep over it.

Let us get on the first one there, Rob.

Rob B:                                   The first one is a big one. You hear from a lot of people who you speak [0:10:40].

Rob D:                                   A lot of newbie investors who come to me, not all of them, but a lot of the concerns have these common themes to them all.

One of the big ones is what happened to if I cannot rent out my property? There are two ways to look at this. One if you cannot rent out the property you are planning to buy and what happens if you cannot rent out the property you already bought.

So let us look at the first scenario. If I wanted to buy a property, how can I increase my chances of making sure that the property will get [0:11:10]? Well, the big one is research. Want you want to do is to look at your area that you are targeting. In the previous episodes we have talked about fundamentals, shop, schools, transport links, major employment, and major investments. All those things, they are all applicable in an area. If so, you will instantly know how to improve your chances. You also look at the amount of rent that you are hoping to attract. Be realistic and call up the [0:11:33] agents like we have talked about in the past. Mystery shops the possible tenant and the landlord to get both sides of the story. Find out the realistic market rent in that property so when you put in your figures together, you know one, the area which will have a good number of tenants, because of all the fundamentals, and two, the amount you projected realistic. If you do those two things then, when you collect the property, if you have a good letting agent, and you have gone by research, on the previous podcast on how to find a letting agent. If you have not listened to that go back and listen to it. If you apply those principles then the letting agents, the area being a strong area, the rent being a realistic market, and all those combined will then make sure that you have a very good chance of lending out your property. So that is the first note.

The second scenario is what happens when your tenant leaves and you cannot rent it out again. If you have done stage one that we have talked about, well that is unlikely, but it could happen so it is down to one or two reasons. One, you have a [0:12:34] agent or two, your rent is too high. We would do first is first of all to [0:12:39] your current letting agent. If after a few weeks it is not rent, then reduce the price. Then after a couple more weeks, if there is still no interest in the property, this is not going anywhere, bring in an additional agent. You need to get rid of your unnecessary or original one but bring in an additional one because it is nearly always down to those two facts. Now the third one, it could be your property is in poor condition but hopefully your honesty in yourself should recognize that you need a new paint, or a new carpet needed, but do well in the property. It normally the letting agent that would do the pricing, hopefully when you identified that the property is not at fault.

There are all the things that you can do to prevent or stop your property in being left out. If you go ahead and do all those things that I have mentioned, then that risk, that downfall, that disaster is far less likely to happen.

Rob B:                                   If you have property you already own and you cannot find anyone to rent it, I would take that as feedback. Like you say, it has to do with the condition or to do with the rent. Tenants are not silly. If you are going to charge over the odds, there are something which is just not in prime condition, take and know about it and yours is going to be the last to be picked. I have seen this happened in areas where demand has fallen for some areas and the good properties and the realistic properties are all fine but it is the one right in the bottom in where the landlords have been neglecting tenants and letting it take long for years and years. Suddenly they find that it is empty but that is just feedback and it means that you will do something about it and hopefully say that you are doing things properly in the first place and that is not going to happen. But in general, it is feedback and because the population is not getting any smaller, new homes are being built at any great rate and there is always going to be a strong demand for property. If you do things correctly, you should always be able to find a tenant and that would rent on it.

Rob D:                                   Agree. The nest disaster that could happen is property prices falling.

I would say that this is really not a disaster at all. It is our best opportunity and it was something that you could happily ignore or you are doing this seriously.

Rob B:                                   Property prices will fall at some point. It is as if you are looking at a twenty to thirty year investment horizon and at some point during that twenty or thirty years, prices will fall and it does not matter. The only matter if you need to sell or remortgage at that time. The key to prepare for this is to make sure that you do not put yourself in the position where you have to sell at any point. That means having a decent amount of equity in your property, not using a hundred percent mortgage when you can this days, but do not take your mortgage too high. Making sure you gain your figures right so make sure you get a good monthly profit so that means you can cope if interest rates go up or if your cost goes up, it means you make less profit rather pushing you in to a position wherein you have to subsidise the property. Keeping money aside for voids and unexpected bills, if you do that, then in process for, then you never have to sell and you can just write out. For the long term, at the very least, the price of your asset will go up and line with inflation. If the price of your property is gradually going up over the time, your debt is you have the mortgage, is staying static. So effectively, your debt is being inflated away. So of the long term, it is really nothing to worry about at all. You just have to see it. You can even say that if property prices fall, then great! You can just write out your own properties and you can take your opportunity to pick another one on cheap while prices are down. So that of all the disasters, I would say that if you set up properly at the first place, it is really not a disaster at all. It is actually an opportunity as I advice.

Rob D:                                   Your only lose in the property is if you are force to sell. That is the key and point there.

I have got a property that is in negative equity. Now I bought right at top of the market there. So I do not see the credit cards coming and I would be a lot wealthier if I did. I am not worried, it is just one of the things that are just one of the properties in the portfolio and it is in negative acuity, however, the cash flow is fantastic. It is still an asset and it is still paying me every single month and already the property prices in that area recovered. I actually said that I probably break even more on the mortgage now. Not that I have a worth because it rents really well and I never had a void period in that property and the cash flow that I am making is fantastic. So do I regret buying it? Not at all because it is an asset for long term

Rob B:                                   If it is making you money why resell it anyway?

Rob D:                                   Exactly. That is an asset.

Next, what happens when your tenant stops paying rent? Now in this case, prevention is better than cure. You want to make sure that when you find your tenants, if you are doing the search, you should probably [0:17:08] then, you do the credit checks, you get references, you get a guarantor if needed, you can do all that. If you use a letting agent which I do, you can use the lofting agents to do all those form. I am not necessarily telling you to put all your trust on an agent you do not know. Hopefully if you have listened to our previous podcast on how to find a letting agent, you have found a fantastic letting agent who does not just put anyone on the property to get a quick re-let but they do a fantastic job and they get you a really great quality tenant that comes with all the good references and we good credit rating, comes with a good guarantor if needed, so that you are completely safe if anything goes wrong. If the guarantor is a good guarantor, and your tenant does stop paying, then you should be covered. If only your guarantor is as week as your tenants, then you have to worry.

A lot of that can be prevented either doing background checks yourself or working with a really good letting agent who you know and trust that would carry out all of those in your behalf.

Now it is not enough to say that nothing will ever go wrong if you do all of that but if reduce your risk massively. If your tenant does stop paying, then you need to make sure that your letting agent again, if you are using one, is on the ball and knows all the procedures to solve the problem quickly. Now maybe a genuine reason I think if you stop paying, is that you may need talk with your tenants and find a solution, that way, so both parties or it maybe that you have got a bad tenant who has no intention of ever paying your rent. Hopefully, you have prevented that by what we have just said and in turn instantly if your tenant does have a change of personality, if that happens, then you need to make sure that if your letting agents are involved, that they are on the ball and they know the laws and regulations to getting those tenants out as soon as possible in a lawful way, if you have a letting agent, then you need to make sure you are on top of those laws and regulations as well.

Now, it is a massive topic the laws and regulations of property investment and we will cover that in an individual podcast. But if you are going alone, you need to make sure that you are in the money train when it comes to that kind of thing.

Rob B:                                   Yes you do because evictions and so forth, there is no quick and easy process anyway ad if you get the slightest thing wrong, the whole thing can be thrown out and set you back by another couple of months when you still are not yet getting paid and it is not good. I mean, tenants not paying is not good things. So as much as you possibly can to protect yourself against that from happening, again it feels like a disaster overtime but it would probably will happen despite all your best efforts and if you got any properties in enough property for enough number of years, and you have a bad experience at some point, you just have to do the best that you can and to stop it from happening and if it does happen, deal with it quickly and effectively and legally when it happens.

The other thing that tenants can do to really mess up your plan are not paying the rent, is wrecking your property. Often when the two go together, it is that kind of tenant who does not want to pay does not want to treat your property very nicely either.

Again, prevention is better than cure on this one. You have to put the right tenant in there so all previous problems in there and advice applies. The difference from the previous landlord are a big one on there and that is actually means calling the landlords and having a chat with them other than just making a sort of thing that they can write on a paper. You also attempt to lifestyle reference your tenant and that picks up things that would not appear on a credit check which is clearly about financial matters.

There is a site called landlordreferencing.com in the United Kingdom, we will link that on the show, and there a seller report for $4.99 that covers ID checks, financial records and also where the previous landlords or agents have reported problems with behavioural things like damage, criminal behaviour, or anything like that, than can be really useful because you get tenants who are just bad tenants and they seem very plausible and there is not a thing on their financial records that would make you realize that there is not something bad about them  but if you speak to their previous landlord, they will certainly not give you the details of their previous landlords if they have been messing around, but you can use this system to see if anyone has reported anything that means that you need to be suspicious about them.

Once you have done that and you are as happy as you can be with your tenant, then you have to make sure that you or your letting agent does thorough inventory and that means that you can prove the condition was when they moved in and that means that if there is any damage, malicious or otherwise, you can recover that damage from their deposit by using your evidence and inventory preferably even an inventory with photo, or even a video inventory to make it really easy to make your case and make they pay for. Of course if they are causing any really serious damage that exceeds the amount on their deposit, then not a great amount that you can do, then take them to court which can be expensive and time consuming and they probably do not have the means to pay you anyway if serious damage happened. So that is a real last resort and if that would really happen.

The other thing you can do if there is something that you are really worried about is that you can actually get cover on your insurance for malicious damage by tenants on some landlord insurance policy. It is not something that will be covered on normal home insurance or even basic landlord insurance but there are some options out there that would cover you for as of twenty five thousand’s worth of malicious damage by tenants. So that is something that I do not think most landlords do it. I do not do it but it is something that you could look into if damage is a really big concern and if it will help you sleep better at night and maybe something to think about.

Rob D:                                   Absolutely, Rob! All those points are solid points. I completely agree with everything that you have said then.

The next one, property falls apart. How would you deal with that one?

Rob B:                                   The property falls apart, hopefully again you want to make sure that you protected yourself. If your property falls apart, insurance is the only things you have got there. Hopefully, you are properly insured, you have got this insurance ad everything, and so if it does fall down around in your tenancy, you are probably covered and you will be compensated for that.

The best thing that you can do is to make sure that you do not buy enough property in the first place. The way to do that is to make sure that you get a survey done. Now if you are getting a mortgage, then they are going to insist that you get a survey done but it is a pretty superficial one and it is really only about evaluation and protecting their financial interest.

For proper look of the structure of the property, you want to get hold of something that is called the homebuyer report. It normally cost a few hundred [0:23:33], and it means that a surveyor will come out and take a look and kind of give you a full twenty to thirty page document covering the condition of all major parts of the house, so the roof, from the damp in the walls, the floor, and all that kind of things. It is written so it is deliberately easy to understand, it is not on a legal jargon or anything like that, you can take a look at that and see if there is anything wrong. That, not only gives you piece of mind, but if it means that you do uncover with issues with the property, you can use that as leverage probably to get the price down. Survey is not something that everyone does, but it is possibly a good idea to make sure that you are not buying a real duffer, but if you are worried particularly about this kind of thing, if you are not particularly handy, you do not like the idea of having to do a lot of work, and then buys accordingly. Go for a newer home or something that is recently has been refurnished by someone else.

The biggest profits typically of the properties there you buy as a real recon, do them up and make a profit in return for your hard work, but you do not have to do that. That is just one of the many strategies. If you want to buy something that is in absolutely prime condition and someone else has already done the hard work and you just want to hang on to it, your numbers work and you want to hang on and see the money come in, not worry about maintenance or anything, that is a properly legitimate thing to do as well.

It is just people worry about potential disasters in different ways. Some people are really freaked out about the idea of property falling down; other people are more concern on not being able to less it. So, you can do much on all of them but I say if you are particularly worried about one of them then it is worth buying accordingly so that and you can actually get some sleep.

Rob D:                                   You build us a great example. This is something that can send you then a lot of new builds over a lot of years with structural guarantee. So anything inside the property, either it is mine or would not be covered, may it be structurally the roof or anything like that then you are going to be covered. If that is something that particularly bothers you, then it build up you and maybe right for you or as Rob said, refurnished property has also has its needs of needing you because if it is a new build that is two or three years old, it still has the guarantee of the ten years that I might have seven years left to run. So have a look at those guarantees as well because that can give you a piece of mind if that is something that bothers you.

The last one though Rob, I had no answers for.

This is a true story. I would not name her but it is from a few years back now and how the client went through the typical things, once who cannot get the property let, what happens when the tenants stops paying and who went through and she was fine and after running through a lot, about ten, lost a lot of things that could go wrong, she is one of those people who have seen the glass go half empty and half full, yet in a serious term, what happens when my property gets hit by a comet?

Now, I have to say, that is not something that we have asked before and it took me a while to compose myself to answer that question. However, what I would say is if you are worried about your property getting git by a comet; do not invest in property because if you are that negative, that gloomy and dooming scenario happens then, I do not think that property investment may be for you. So all of the above, we can give you sensible answers, but unfortunately we do not have any special missiles that can stop comets heading your property.

Rob B:                                   Shield that can reflect any potential incoming celestial object. It is a little bit beyond our limit, as it is probably going to be expensive and real dent in the cash flow. I would not worry too much about that. If your house gets hit by a comet, you have got probably bigger things to worry about on a different scale.

Rob D:                                   I think the message here is that if you over think things, you can always come up with reason for not doing something. You do what you can do prevent all the reasonable things that could go wrong but one is starting to get into black swan scenarios as it sometimes called, and I think it is time to start either giving up on the whole idea of investment or just stop over thinking it and go for it.

Rob B:                                   You made a great point there, Rob. If you want to find a reason not to investment in property, you can find one. There is enough reason out there. With reasons as we said, you can even prevent them, but if you want to find a reason not to invest, there are plenty there for you.

Property investment normally attracts the optimist, the people who want to improve things, and the people who believe that their future is going to be a good one, that tend to be the people to gravitate toward property investment because it could better their lives.

Now, negative doom says that the people who look for the gloom in life, sometimes invests in property but there is less of them, I am pleased to say. This means that it might create jobs great because it can deal with people who are looking to improve their life, not with the doom and gloom and on.

Rob D:                                   It is a good point.

So, this leads us on to the resource of the week. This research and preventive things that we are talking about is what I would like to use for this week for the resource of the week, it is something a website called checkmyfile.com. In particular, they are post code check. Check my file is a private checking facility and you can do personal credit checks on there. The way I use this website is to check local areas and particular post codes. So if we are looking on a new investment, what we will do is we put this on our shifty report, which is our [0:28:52] documents. We will check the local credit rating. It is a great tool because it tells you the national average and it tells you the area like compared to that national average. So have a look, we will put it on the show notes, have a look at your local area and hope it comes out fine. I am sure it would work well. If you look in investment, you can now stop comparing different areas against each other and it is not the only took that you should use and it is not somewhere you based all your judgement on but if you have a low credit rating, then you need to take that into account. It does not mean do not invest but it means that your risk is increased and you need to assess that.

So have a look, its called check my file, and we will put in our show note of course. Go ahead use it, it is completely free and it is a really useful tool that we use in the office all the time.

Rob B:                                   Yes, I think that is a great one. It is not like what I have used before but it is great if you are investing away from an area that you know well or you have a really great opportunity coming up in area that you be familiar with. Some people like to invest close to home and we both invest away from where we live but like you say it is one of the many different things that you can do to get a better picture of the area and outweigh the risk accordingly.

We will feature more of online tools like that in future weeks but it is really nice to have a bit marks for all of you so when you are looking into an area, you just come through without leaving your desk. You can build a nice little picture of what you are looking up.

That is the great resource of the week and I think that wraps up another show. Isn’t it Rob? That is all that we have got to say this week but do let us know what you though of this week’s show if you have had any property disasters and you would like to know what to do about them more. If there are things that we missed of that you think other people should be aware of then go on to the website and leave us a comment on there. You could also get your voice on the show if you want to like what Pete did earlier, leave us your feedback and all your questions in a form of a voice message. You can do both those things by going to our website which is thepropertypodcast.com and if you want to see the shoe notes from this episode, with all the links and things that we referred to, you can see that at thepropertypodcast.com/9.

Rob D:                                   It certainly is. Well Rob, I think that you are nearly at your siesta. I adapt to where you are, and I am following this.  Even though I am sure that everyone is going to keep up with your movements. It has been a great show and we promised next week that we will be a little bit more upbeat and less negative and we hope that everything that we have covered today will show you that property is absolutely fantastic but you just need to make sure that you put a certain percent in things that are certainly in place and risk, to make sure you have far better chance of having a really successful profile.

Well, it has been great. I really enjoyed this week, Rob and I look forward to catching up with you next Thursday.

Rob B:                                   Yes. Next week, we are going to be talking about whether you should buy to let or buy to sell. Different strategies, both can be great independently, things and your goals. I am sure you are obsessed with goals. We will be mentioning a lot and it will be the topic of next week’s show. So please join us then.

Rob D:                                   So guys, we cannot wait to speak with you next Thursday.

Ric:                                         Thank you for listening to the property podcast. Do not forget to check the show notes and join the mailing list at thepropertypodcast.com