Podcast Summary
Investing in high-quality property: Focus on high-quality properties for long-term growth, despite lower rental yields. Factors like desirable locations, well-built properties, and good tenants contribute to high-quality investments.
Learning from this episode of Ask Rob and Rob is the importance of investing in high-quality property, regardless of the stage of the property cycle. While it may seem counterintuitive to focus on high-quality stocks when rental yields are lower, the long-term capital growth benefits far outweigh the initial sacrifice. Rowena, a long-time listener of the podcast, shared her strategy of buying low-quality property in high-quality areas due to the attractive rental yields. However, Rob emphasized that the hassle and potential for negative capital growth can outweigh the benefits of higher rental yields. So, what does it mean to invest in high-quality property? Rob didn't provide a definitive answer but hinted that it could include factors like desirable locations, well-built properties, and good tenants. The exact criteria may vary, but the key is to focus on properties that have the potential for long-term growth and minimal hassle. Investors should consider the trade-off between short-term rental income and long-term capital growth when making property investment decisions. While it may be tempting to prioritize high rental yields, investing in high-quality property can lead to greater returns over the long term.
Identifying a high-quality rental property goes beyond just top rents: Consider factors like uniqueness and location to identify a quality rental property, prioritize based on individual investor goals and risk tolerance.
Identifying a high-quality rental property involves considering factors beyond just the top rents in a given area. While commanding a top 20% of local rents is an indicator of quality, having a unique property that stands out from the competition can also justify a premium price. This uniqueness could be in the form of a desirable unit within a development or a high-quality development in a popular area with limited options. Ultimately, the approach to identifying a quality rental property depends on individual investor priorities, with some prioritizing hassle-free investments over higher yields and capital growth. It's essential to remember that there's no one-size-fits-all solution, and each investor's strategy may vary based on their unique goals and risk tolerance.
Total return in property: Yields vs. Capital Growth: Focusing solely on rental yields can result in missed opportunities for greater total returns from capital growth. Consider both yields and growth when assessing property investments.
While rental income is important, the real wealth in property comes from capital growth, especially for long-term investors. However, it's essential to consider the total return of a property, which includes both yields and capital growth, when making assessments. For instance, a property with a slightly lower yield but higher capital growth could yield a greater total return over time. A YouTube video titled "Property mistake cost me £22,000" illustrates this concept well, and both Rob and the speaker have made similar mistakes focusing on yields instead of capital growth. Lastly, Jay asked about the use of Evernote and Trello by Rob and Rob, and they confirmed that they still utilize these tools for organizing their property investments.
Transitioning from Evernote and Trello to monday.com and Todoist: The speaker and their colleague have moved on from Evernote and Trello to monday.com and Todoist for better organization and collaboration on projects.
While Evernote and Trello were once beloved productivity tools for the speaker and their colleague, they have since moved on to using monday.com and Todoist. The speaker initially stuck with Evernote due to their long-term commitment, but acknowledged its decline in quality. Trello was also cherished for its quick syncing and visual organization, but the speaker found its syncing speed insufficient at times. The team once used Trello for collaborative projects, but eventually transitioned to monday.com and Todoist. Monday.com is now used for organizing their podcast and YouTube channel, offering a visual and quick way for multiple team members to work on projects. Despite the fond memories, the speakers have found that these new tools better suit their current needs.
Comparing Monday.com and Todoist for managing tasks and projects: Monday.com and Todoist cater to different needs - Monday.com is a comprehensive project management tool for teams, while Todoist is a simple to-do list app for individuals.
Monday.com and Todoist serve distinct purposes in managing tasks and projects, each excelling in their respective domains. Monday.com, described as "Trello supercharged," is an all-in-one project management solution ideal for teams, offering templates and advanced features. On the other hand, Todoist is a dedicated to-do list app, perfect for individual users who want a simple and efficient way to manage their tasks. The speakers shared their experience of upgrading from Trello to Monday.com for team projects and Todoist for personal to-do lists. They praised the free versions of both tools for their functionality and syncing capabilities across platforms. Despite the possibility of using Evernote and Trello together, they were satisfied with their current choices and saw no need to make a significant change. The speakers also discussed their past experiences with Evernote, mentioning that its development seemed to stall, leading to a bloated app with unwanted features and slow performance, ultimately making way for better alternatives.
Every tool has its strengths and weaknesses, but the most important thing is to use what works best for you: Focus on using productivity tools effectively to achieve desired outcomes, not getting too hung up on finding the 'best' tool
While there are various productivity tools available, the best one may not be the same for everyone. The panelists shared their experiences, and while they agreed that Evernote might not be their top pick if they were starting over, they emphasized the importance of using what works for you and focusing on the results. The tools are just enablers, and the real value comes from using them to achieve your goals. So, if you're still getting the desired outcomes with Evernote or any other tool, it's worth continuing to use it. Ultimately, the most important factor is not the tool itself but how effectively you use it to drive your business, investments, or other pursuits forward. As Rob mentioned, the switching costs are real, and it's essential to consider the time and effort required to learn a new system. The panelists encouraged listeners to explore different options, but they also emphasized the importance of staying focused on the outcomes and not getting too hung up on the tools.
