Understanding the monthly statistics

A local city newspaper recently reported that property prices had raised by 10% over the preceding 12 months. This seems quite impressive, but in some ways the manner that it was reported in the paper was a little misleading. Not by what was said, but for what was left unexplained. Almost hidden in the article is the word 'median'. For people who don't know, 'median' is a statistical term that means the middle value in a data set. For example, in the data set being [21,22,23,24,25,26,27,28,29] the median would be 25.

In property, the median house prices are used instead of the average (or mean) house price because the average price can be adversely manipulated by unusually high or low prices. The median price is a much flatter trend since it is not skewed by value, just the number of sales in any given period. The generally acceptable practice of taking the median house price and then extrapolating it across all properties (ie. from high priced inner city properties to the lower end) is a statistical mistake. It is only appropriate to apply the median house price movement to a property that was similar to the median property as defined in the previous analysis.

So what does this show? Well, be very careful about making assumptions that all property has increased by 10%. It is perfectly possible that property at the upper and lower end of the market moved by a completely different percentage. What this also shows is that it is quite possible that certain property types or certain areas increased by a greater percentage. So by running a little research it is feasible to buy into an area that can experience an even greater percentage increase.

The key point therefore is that analysis based on median data cannot be accurately used across all elements of the property market but it can be used to derive more information about likely future opportunities.


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Become a leader not a chaser

We recently had a stand at the Property Investor Show in London and of all the hundreds of people that I met I soon came to realise that there are two very distinct types of property investor, the leader and the chaser. Let me explain:

The leader is someone who has a structured plan. They know where they want to be and they have a clear idea of how they are going to get there. They have built up a high level of research, they have spoken to experts, they have studied the trends not over the last few years but over decades, they have monitored political and economic cycles, and they have built an in depth understanding of the market and how best to use it. These people will be the next generation of millionaires, not just in portfolio value but in real money, true millionaires.

The chaser is someone who doesn't really know the market at all. They read and believe all the scare stories. They hear of emerging markets after the leaders have already invested there, and believe they have some form of inside information. They have no plan except to get rich quick yet have no idea of how they will achieve it. They leap onto any deal that looks 'too good to miss' and end up with burnt fingers. They basically chase the market without knowing what they are doing or where they are going.

I mention this because I was little less than shocked and surprised at the number of people who have totally discounted the UK property market, believing that it has little potential. Instead they are leaping into high risk, potentially dangerous overseas deals without having the faintest idea why, except that they have read it in the paper or their next door neighbour knows someone who says it's a great investment.

Now don't get me wrong, there are many great overseas opportunities and some potentially mind blowing new markets. In fact we deal with some of the better ones ourselves. But the fact is that the UK still offers some of the safest and greatest returns anywhere in the world. You may not make huge returns immediately, but over the long term the UK property market will generate simply stunning profits, and the leaders know this. This game is not about concentrating on short term gains, it's about making serious long term wealth, and this is why those people with a plan continue to buy UK property, whilst others simply chase the market, more often than not arriving too late.

A sensible portfolio will contain a mix of geographically diverse property in a range of styles, and for this reason the UK must form the basis of any sound property portfolio. We are lucky to live in a country that has one of, if not the most stable, predictable, high growth property markets anywhere in the world. That is why so many overseas investors choose to purchase here. So do your research, look at the last 50 years of UK property trends and think to yourself, is this a cake that I want a slice of?


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"Nothing is as real as a dream. The world can change around you, but your dream will not. Responsibilities need not erase it. Duties need not obscure it. Because the dream is within you, no one can take it away." - Tom Clancy, Top Selling Author

"A dream is just a dream. A goal is a dream with a plan and a deadline." - Harvey Mackay, Author



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Today is yesterday's tomorrow
by Jim Rohn

The problem with waiting until tomorrow is that when it finally arrives, it is called today. Today is yesterday's tomorrow. The question is what did we do with its opportunity? All too often we will waste tomorrow as we wasted yesterday, and as we are wasting today. All that could have been accomplished can easily elude us, despite our intentions, until we inevitably discover that the things that might have been have slipped from our embrace a single, unused day at a time.

Each of us must pause frequently to remind ourselves that the clock is ticking. The same clock that began to tick from the moment we drew our first breath will also someday cease.

Time is the great equalizer of all mankind. It has taken away the best and the worst of us without regard for either. Time offers opportunity but demands a sense of urgency.

When the game of life is finally over, there is no second chance to correct our errors. The clock that is ticking away the moments of our lives does not care about winners and losers. It does not care about who succeeds or who fails. It does not care about excuses, fairness or equality. The only essential issue is how we played the game.

Regardless of a person's current age, there is a sense of urgency that should drive them into action now - this very moment. We should be constantly aware of the value of each and every moment of our lives - moments that seem so insignificant that their loss often goes unnoticed.

We still have all the time we need. We still have lots of chances - lots of opportunities - lots of years to show what we can do. For most of us, there will be a tomorrow, a next week, a next month, and a next year. But unless we develop a sense of urgency, those brief windows of time will be sadly wasted, as were the weeks and months and years before them. There isn't an endless supply!

So as you think of your dreams and goals of your future tomorrow, begin today to take those very important first steps to making them all come to life.


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"There's no scarcity of opportunity to make a living at what you love. There is only a scarcity of resolve to make it happen." - Wayne Dyer, Author

"We are told that talent creates its own opportunities. But it sometimes seems that intense desire creates not only its own opportunities, but its own talents." - Eric Hoffer 1902-1983, Author and Philosopher

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Meet a fellow Property for Life investor
Franco O'Donnell

"I have found it easier obtaining 4 buy to let mortgages through Property for Life than buying a car from a main dealer! The process of acquiring investment property through these guys could not be simpler."

Meet Frank and Della O'Donnell. This time last year Frank, a sales manager based in Surrey was relying on his pension to secure him a comfortable retirement. When he realised this was not going to happen he decided to adopt his own strategy to provide for his family's future. He knew that property with its proven track record of appreciation would offer him the best return on investment but was unsure how to go about putting this fact into reality.

Frank first came across Property for Life back in August 2005, after speaking with one of the consultants about the process he felt it was too good to be true, and held off. Ironically it wasn't until he attended another company's seminar he decided to put his faith in Property for Life.

"I have been on a learning curve. Scared that the offers by Property for Life were too good to be true I went along with a friend and paid out £2,500 to another property investment company and had my fingers burnt. They simply reiterated what the guys at PFL had said to me for free! Although I had to pay out the money I am glad I did as it calmed my nerves and gave me confidence, without this I might never have invested. I then attended Property for Life's free academy. I never know a free lunch existed until this day. I met the team and David talked through the process with such clarity I knew I had found the right company for me."

One of the reasons Frank hadn't invested in property before was because he thought you needed a lot of money to invest. After looking over the structure of the investment opportunities on our website he realised this was not the case. He has since used the buying power and strategy adopted by Property for Life to achieve equity of £78,877 in his 4 properties. This he has gained from investing just over £11,000, something he still finds hard to believe. "It is a hard concept to get your head round, your whole life you are advised to save, buy a house and pay off the mortgage, but in just over 6 months I have acquired instant equity of nearly £80,000 from my discounted purchases. This is something which would have taken years to achieve the conventional route."

Frank originally set himself a target of acquiring five properties by the end of 2006, something he thought would test him. Having completed on four in the last 6 months he is well on his way to achieving his goal.

"Property for Life is currently my sole provider of investment property, I would not wish to use anyone else, the team are really friendly and helpful, all the deals offered are genuine and I have recommended the guys to many other would-be investors"

Frank is just one of many clients who put their trust in Property for Life time and time again to help them build a strong property portfolio. A selection of our many case studies is available on our website www.propertyforlife.com – go and take a look!

Would you like to join them and take advantage of the exciting and rewarding world of property investment? Are you a little apprehensive or unsure whether property investment is for you? Do you require help and guidance? Then you need to take advantage of our FREE academy programme. Take a look at www.propertyforlife.com/whyinvest/education.html for more information.


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What's new?

On the 21st of September we made our second half yearly contribution to the Great Ormond Street Hospital Children's Charity (GOSHCC). Since we increased our contribution to £50 per property sold our overall contribution has increased significantly, with the total for the last six months totalling £6,350. GOSHCC is a very worthy charity and we are pleased to offer them our continued support.

Laura Getliffe, marketing assistant at Property for Life
presents a cheque to Clare Cowley of GOSHCC.

What's available?

We currently have the following investment opportunities.

UK property
Carlton Court, St. Stephens Avenue, Bristol
Marco Island, Huntingdon Street, Nottingham
Abernethy Court, Horwich, Bolton, Lancashire
Alexandra House, St Georges Quarter, Leicester

Overseas property
France
Domaine de Manon, Provence
Hotel des Deux Domaines, La Plagne
Les Crets, Meribel, French Alps
Chalets du Forum, Courchevel, French Alps
Le Britania, French Alps
La, Closerie, Normandy
Val de Loire Resort, Loire Valley, France
Parc aux Airelles, French Alps
Jasses de Camargue, Southern France
Residence des Arts, Paris
Residence les Ecourts, French Alps

Spain
Lar – Playetas, Orepesa del mar, Castellon, Spain
Campoamor, Orihuela Costa, Alicante, Spain
Terrazas, Costa del Sol, Spain
Terrazas de la Torre, Murcia, Costa Calida, Spain
Mar Menor 2, Mar Menor, Costa Calida, Spain
Roda Golf & Beach Resort, Roda, San Havier, Murcia, Spain
Corvera Golf & Country Club, Corvera, Murcia, Spain
Lar – Estepota, Dona Lucia, Marbella, Spain
Dona Julia, Costa Del Sol, Spain

Caribbean & Florida
Florida land packages
Blue spring reserve, Lake county, Florida

Brazil
Lagoah Do Coelho Resort, Brazil

Please go to www.propertyforlife.com/property/ for full details and look out for more great opportunities coming soon!

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Upcoming events

Over the coming months we will be running a number of property investment academy sessions as part of our ongoing academy programme. If you would like to attend a property academy session please call Laura on 01252 737575 or email laura@propertyforlife.com stating which session you would like to attend and how many places you require.

Academy Dates

October 14th – The Montague Hotel, Central London

November 4th - The Montague Hotel, Central London

November 18th – The Cobham Hilton, Cobham, Surrey

December 9th - The Cheshunt Marriott Hotel, Near Enfield

For further information regarding the Property Investor Academy Programme please follow the link www.propertyforlife.com/whyinvest/education.html


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Recent events

The Property Investor Show attracted thousands of interested people to London's Excel exhibition centre during the weekend of the 22nd – 24th of September. Once again Property for Life had a highly visible presence at the exhibition with our striking exhibition stand. In addition our MD David Austin presented to a packed theatre on each day as part of the exhibitions seminar programme.

Do you fancy a spending spree at one of the UK's leading department stores?

The new look Property for Life referral programme can offer you just that.

All you need to do is tell an interested friend about Property for Life and you could soon have a minimum of £250 in gift vouchers to spend in any John Lewis or Waitrose store.

Quite simply, for each person introduced by you who then purchases a property through us you will receive a cool £250 in John Lewis gift vouchers. If they purchase more than one property you will receive £250 in gift vouchers for each property they purchase. You could soon be well on your way to that spending spree.

Remember, the more people you introduce the more chance you have of grabbing at least £250. So why not tell your friends and family about Property for Life? Make sure they register on-line at http://www.propertyforlife.com/register. When registering it is important that they select the recommendation option in the 'How did you hear about us' section of the form and include your name in the 'other' box.

Please note that the referral programme is on a per property not a per person basis. Please see http://www.propertyforlife.com/services/referalprogramme.html for further information.


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