2021 is for Cash Flow Strategies!

 2020 has been a really tough year for a lot of people.

Many people lost their jobs, lost businesses, and lost income.

We all hope that 2021 will be better – but do we know for sure?

Covid crisis is still continuing. We are in recession and even more people will lose their jobs and income.

 

Building up an extra income stream is now emergency, rather than contingency.

 

In property investing, one way of categorising various strategies is Cash flow vs Capital strategies.

I have written a blog post on this before. If you want to reread this article, you can find it here.

What I want to say today is that – if you are new to property investing, it might be a good idea to start with Cash Flow Strategies in 2021 as oppose to Capital Strategies.

 

Financial security

-        Having an extra income stream will give you more financial security in times of crisis, for every property investor, new or experienced. However if you have limited experience, having sufficient cash flow coming in every month gives you a solid foundation. On that, you can incorporate capital strategies to give ‘boost’ of income.

Uncertain times and market

-        There is a lot of uncertainty in the property prices in 2021 due to Covid, Brexit after effect, and recession. Capital strategies typically involve some sort of value addition, which typically takes time. And time creates more uncertainty in uncertain times. If property prices start to fall, and you are caught in the middle of a value addition (development) project, the longer you wait the more the end valuation will decrease, and the less your profit margin.

Experience and risk

-        Most people are scared of making investment decisions. And you should be cautious to protect yourself. As a new property investor, there is a lot that you don’t know that you don’t know. So it makes sense to start with simpler more established strategies. These strategies tend to be more cash flow focused, such as But to let, Rent to rent, etc. Even more advanced cash flow strategies such as HMO and Lease Options, can be easier than really advanced capital strategies, with much less risk involved.

 

I hope that helps!

Emma

 

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session.