JoJaffa publishing...

However, for a Property Wire 'opportunity' - we need to go one step further.

For a Property Wire service to succeed we must convince our potential subscribers that we can supply them inside information that they can not get anywhere else. In addition, we need to direct them to very specific actions that they can take right now, and that we believe will deliver property profits.

... Hence each Property Wire will contain either:

a) a BUY recommendation

b) an AVOID recommendation

c) a BUY with CONDITIONS recommendation (and a statement of those conditions)

The question for you as the author, is ultimately, would you buy this deal? And if so, which property would you buy? River facing? Or the cheaper ones? Would you hang out for a river view at a 'non-view' price? One bed flats below the stamp duty price?

Did you speak to a local letting agent and get them to 'knock it'? Or did you find that they thought it was a really good development?

Okay, so how do we make the choice between a), b) and c)?

Ideally, on a launch wire - which we'll give away free to every subscriber - we want to have a BUY recommendation. However, if it is not possible to get a BUY recommendation, then a BUY with CONDITIONS would work too.

Depending on your region, you may find that most developments are either BUY or BUY with CONDITIONS - but we need to explain those conditions to our readers - such as;

Distressed sale discounts:

a) buying near or at the Year / End

b) buying in Dec/ Jan - always a good plan! (but start negotiations now so that you have time to walk away from their 'final' offer)

The basic principle should be that anything which is Cash Positive would count as an out right BUY!

What is a Cash positive deals?

When the deal is cash positive! ie. Assuming a 20% deposit, and making a decision about potential void periods and rents, the income meets the costs of running the property and the finance. You should be able to use the BTL spreadsheet to work out the price to pay (at a given finance rate - say 4.25%)

Lastly - what we need to agree on a strategy for investing in your region. For instance for London our view is essentially this:

a) London is a global capital - Silicon valley firms (on the way up again) see London as the first place to set up an overseas office

b) Everyone outside of Northern Europe sees London as the 'cool' place to go. After all, you get to learn English (and you can't do that in Paris).

c) Despite many Brits desperate to leave UK, there are thousands of people who want to move to London. My new neighbour's 25 year old son (a pharmacist) is about to move to London - his view? Cool place, learn English, Money is good (come from Valencia). So, now with the Euro up and the cost of London property down, it can't be a bad place to be, can it?

So, long term - take a strongly (and with good reason) bullish view on London property.

The buying strategy for now? Either cash positive or distressed/ discount sales.

We know that developers are having problems shifting their stock - that's why they tell us 'over 50% sold' and they won't give dates for phase II.

That means that our readers should

a) get a really cheeky offer on the table (maybe 25% off)

b) keep it there until they come back and are willing to sell.

What should govern accepting a compromise deal? The cash positive measure. If the deal is cash positive, then it's a deal! Especially if your loan is fixed rate over the medium term.

This strategy needs to be adapted to your region, depending on the point in the property investment cycle.