How to buy inside track property
Real Estate June 28th, 2007
The UK property market is changing and as investors we need to change with it if we're going to stay on the "inside track".
The market cycles. Lending criteria change. Rates change and legislation changes. The whole market evolves and unless we evolve with it we potentially risk using structures that are now frowned upon, or in the worst case, are now illegal.
The UK property market is maturing a lot faster than the Australian market that I was watching carefully in the 90's. Frankly, I'm impressed at the rate of change and I think it's a positive step each time we remove the various loopholes that exist which put investors at risk either because of their own level of education or because they feel that it's OK to bend the rules.
I always say that the spectrum of structures people use on the inside track when purchasing a property runs from the white through the grey and definitely into the black.
The white is how the average uneducated investor buys property. Perfectly legal and perfectly working in everyone's favour, except theirs.
The black is illegal and although we certainly don't want to be here, the unfortunate fact is that some investors do end up here when working with inexperienced, unprofessional or downright unethical property clubs who will promise you a quick access to the inside track to property. :(
It always pays to remember that property clubs are not regulated in any way so they must conduct themselves by their own code of ethics. If you're thinking of dealing with a club that doesn't have them published as prominently as we do, then be sure to ask some serious questions.
The grey is where I like to play. It's where the highly educated investor plays. It is perfectly legal even though most people would proclaim you can't do that!. I assure you its perfectly legal and unlike the white the odds are definitely in your favour.
Read on for my entire article: ...