The age old question but the answer is the same.. NO! They are different, they have different rules that govern the game, they have different growth patterns, yields, market forces affecting them, regulation, and so many other things. Apples and Oranges if you like.
The real questions comes down to one simple question, although for most people they will not know how to answer it initially. But why are people saying Hotel Rooms all of a sudden and should we really take them seriously?
Hey, guys. Property Search… Think Gladfish. I’m Brett Alegre-Wood, and this is Property Rant.
So, today, is buy to let better than hotel rooms, or is hotel rooms better than buy to let? It’s a question that a lot of people are jumping on now. And certainly for us, we’ve just introduced selling hotel rooms, so people are going, “Hold on. Is buy to let not good anymore and that’s why you’re introducing it?” Absolutely not.
They are different. And this is the thing. I’ve always said you can make money a thousand different ways in property, whether it’d be hotel rooms, whether it’d be HMOs, whether it’d be renovation, whatever it is, as long as you know this one thing. And that is, you need to know the rules that apply to the game. So buy to let has certain rules. Hotel rooms have another. One isn’t better than the other. They are different.
Now, certainly, if you are adopting a specific strategy at a specific time in the market, then yes, one may perform better than the other for that particular strategy. But to make a broad-based, “This is better than that,” is rubbish. Absolute rubbish. And don’t believe it.
Normally, when you’re hearing this sort of stuff, it’s because somebody is motivated by the commission they earn from promoting that over that. And that’s what it comes down to. So you need to know what their motives are. And when you understand their motives, then you can strip out the sales hype and BS and actually really look at what it is that you need and what you want, and what investment will give that to you. And when you find that investment, fantastic.
So, we’re offering both investments. And for me, there’s no conflict there. There’s not a case of saying, “This is better than that,” or, “That’s better than this.” It’s a case of saying, “What are you looking to achieve? What are your goals? What’s the current market doing, and what are the rules that apply to that game? And now we can choose which one is better for you in this moment, at this time, with those goals and with this market.” And when you look at all that, and when you break it down to be as simple as that, and it is, we just make it a lot more complex because we’re humans and we tend to do that.
But the reality is when you break it down to that simplicity, then neither is better than the other, but yet sometimes, one strategy is better than the other for you in this particular market. And that’s the key there to understand. And when you understand that, you start to step up to becoming a numbers investor, not an emotional investor. And really, that’s where we want to get you to. So here’s to being a numbers investor.
Have a great day. Live with passion