Why I Missed Last Week’s Newsletter

My laptop broke. Simple as that. But it got me thinking: things break.

In property, things will go wrong. So today, here’s a fast, sharp reminder of five key investment principles you cannot afford to gloss over.

1. Risk

Everyone has a different appetite for risk.

Some people will gamble on parking in a one-hour bay. Others will pay for a full three hours to be safe. Neither is wrong, but they reflect very different approaches.

When investing, ignore the big dinner-party stories. Focus on your risk tolerance. How much uncertainty can you handle? What loss level is acceptable to you?

2. Vacancy

Never assume your property will rent instantly or stay rented forever.

Markets shift. Tenants’ needs change. Someone paying premium rent today may leave tomorrow if better deals appear.

Always ask: What if it sits vacant longer than expected?

Look at local patterns, not just today’s market.

3. Rising Costs

Having €500,000 or €1 million to invest sounds like a lot, but costs rise.

Interest rates, taxes, maintenance, and management fees - all increase over time.

Inflation eats into cash.

Ask yourself: What if the market softens? What if unexpected expenses hit? Know how this affects you financially and mentally.

4. Liquidity

Property is not a quick cash-in asset.

You should have at least 3 to 6 months of reserves to cover vacancies, repairs, or surprises. Without that cushion, you risk making poor decisions under pressure.

Run a worst-case stress test. Don’t plan only for the best-case scenario.

5. The Big “What If”

Zoom out:

What if your income drops?

What if you switch careers?

What if family needs shift?

Your lifestyle shapes your investment outcomes. Also consider external “what ifs”: the local economy, infrastructure, the environment.

Use tools and advisors to help you think through scenarios. Just remember - you are the decision-maker.

Takeaways This Week

• Know your risk

• Plan for vacancy

• Account for rising costs

• Maintain liquidity

• Always ask: What if?

I’ll be back next week to cover more.

Stay sharp.

Prefer to watch me talk? Well say no more!