Is building expertise helpful for successful property investment?

It is often said you need to know little or nothing about buildings to be successful in property. Indeed we know many with non-property-related backgrounds who are very successful property investors.

To substantiate this theory, albeit with the example of one/two, early stages of our property journey were sometimes interrupted by undue attention to detail originating from our own professional backgrounds, David as an architect and mine in interior design amongst a myriad of other things(!). This could lead us to delay in taking action; a behaviour pattern to which I am unused ... We have since tried to 'train' ourselves to be more business-focused.

Having said that, expertise on which to lean can sometimes be the difference between a project working effectively and being a total disaster. Let me illustrate... 

Relatively recently we were offered a 'new apartment', in a superb location. It is a few years old.

In the owner's mind current circumstances have not modified top rent the apartment commands. Difficulties experienced in finding a tenant, challenges in relation to rent insecurity associated with furlough, redunduncies and increasing unemployment in the professional sector, as well as the lack of foreign postgraduate students etc, did not appear to affect the perspective. Since improvements have been made to 'fit' the property for the short term rental market, expressed views have become more entrenched. In a way, this is a complement!

The apartment is transformed from its former 'dated', unco-ordinated 'look' to a sensitive re-design, taking into account the age of the block. To maintain viability, as much as possible, existing 'building blocks' were re-used. With careful colour and complimentary item use, subtle company branding was introduced, whilst continuing to maintain distinctiveness of the unit.

The above scenario was further complicated by a declared lack of 'need' for maintenance over an extended time period. In development blocks, always built on tight budgets, this is particularly challenging.

Because of its excellent position the apartment would work, provided the agreement covered a sufficiently long period. As David would say, once you have done your interior design 'magic', it will be a winner. My immediate view is requirements would take longer than average; and time is money. An inadequately furnished property always takes longer than an unfurnished building. 

Then came the fun... We were invited to check the inventory. This is where David's professional expertise 'saved the day'. Without his knowledge of 'what leads to what' we would have walked into a complete nightmare...

David and I work in very different ways. When I first saw the apartment, I immediately understood the interior design requirement, equalled more hours than I would normally input. Since beginning property investment, David has trained himself to look first at matters only from a property investment perspective. His natural inclination is to view detail, including underlying structural aspects. Looking at the inventory his detailed bedrock knowledge came to the fore. His ensuing report protected not only ourselves but also the long term investment of the property owner.

As we all know, our strengths are also our weaknesses. It is always most comfortable to operate in ways we have done previously. If our background is IT project management, it may seem our project management skills are easily transferable to property investing. They may be; however they may not give us sufficient detailed knowledge to understand best ways to tackle issues of a structural nature when conundrums appear on site unexpectedly. It may be our builder/tradesman/contractor suggests a solution. His/her reason may be well meant. Equally it could be it is the only solution he/she knows for that issue. This does not necessarily mean it is optimal for the matter on hand. Your situation may benefit from particular specialist knowledge to which your builder/tradesman/contractor has not yet been exposed.

It may be someone with a greater breadth of experience could come up with a better solution for you, that would save both time and money. And don't forget that will not only be site costs it will also be finance costs to finish the job and revenue costs that will not be lost because the project does not over-run. The cumulative sum of all these factors can be significant ...

Equally our background is not in finance. Yours may be; so you may be great at costing the job or raising finance for it. Does that necessarily mean you are best to obtain the most cost effective supplies for your project? Sometimes numbers-orientated folk feel that obtaining the least expensive supplies is key to making the best investment. Is this really the best way to make your 'best investment'?

If your plan is to sell as soon as the project is finished, it may be. By contrast, if your intension is to develop and hold, using inexpensive supplies may result in maintenance issues that occur rapidly; and they may be trickier to fix than had the specification indicated the 'best part' for the job.

Having a project supervised by the most appropriate person may result in a functionally effective specification that is not particularly expensive. It simply results from having the required specialist knowledge.

So I guess a conclusion from this article is we not only need to be aware of our strengths and what they enable us to 'bring to the table', we also need to be cognisant of what our knowledge, expertise and experience also leaves missing.

Collaborating effectively with a diverse group of people, especially internationally/inter-ethnically and intergenerationally, enables us all to learn from one another. We each bring a different perspective.

This may challenge our skills, experience or attitude-based preconceptions, which can be hard. If we are willing to set aside these pre-conceptions, we have opportunity to grow.

Personally from the moment I was born I have been committed to and enjoyed growing; I suspect on the day I die I will still be on this path. It doesn't make life easy.... By contrast it is a rich and fulfilling way to explore this world and the wonderful people with whom God has invited us to share it!

Happy property investing. Here's to your success as you share skills, talents, experience as well as different perspectives with others! And if we can assist in any way, please feel free to ask www.honestrelocation.co.uk. We love to help!

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