Following on from yesterday’s 5 items, one of the next biggest mistakes in property is ignoring cash flow. Focusing solely on property appreciation and neglecting the importance of positive cash flow, leading to financial instability or difficulty covering expenses during vacancies or downturns. This caught a lot of people out in the 2008 financial crash (particularly in areas like London where yields are typically already very low). It is also catching out some investors now as BoE Base Rates are rising again to pre-crash norms. Margin is safety. Always buy for cashflow AND capital appreciation. Having a stable cashflow is the only way to do property in a stress-free way – enjoy the journey!

Inadequate Risk Management: failing to implement risk management strategies, such as insurance coverage, contingency planning, asset protection measures or survival funds. This leaves investments vulnerable to unforeseen events or losses.

Overlooking Property Management: underestimating the time, effort, and expertise required for effective property management, leading to tenant issues, vacancies, or neglected properties. Property investment is not – for the most part – passive, despite what alot of property trainers and the media tell you. Being a traditional Landlord is hard work, and you will probably own the asset for far longer than the process you went through to purchase it.

Emotional Decision-Making: allowing emotions to cloud judgment or influence investment decisions, such as succumbing to fear, greed, or FOMO (fear of missing out) leads to impulsive or irrational choices. There will always be another deal – don’t be a motivated buyer.

Lack of Multiple Exit Strategies: investing without clear exit strategies or long-term plans make it challenging to capitalise on opportunities, adapt to changing market conditions or liquidate investments when necessary. You should always have as a minimum 2 plans for any property – ideally 3 or 4.

Married2Property Partners are a property company that aims to do social good through property.