This course is not like a reality TV show about painting and decorating, what kitchen to buy or jumping up and down in order to be "motivated." It is about property economics, how an understanding of the key issues can make you a successful property investor and how to avoid many of the pitfalls and losses experienced by others.

Economics is at the root of any investment decision. Property, stock markets, commodity markets; all markets are driven by economic fundamentals. You must have a grasp of them to succeed. Although the concepts may sound daunting, our course presents them in a straightforward, easy-to-understand format.

How many investors are currently being caught out by the recent interest rate rises in the UK? Unfortunately, far too many. Some have become "forced sellers" and face financial losses, becoming the very opportunities that you should seek. An understanding of economics would have forewarned them and prompted them to fix their cost base in late 2002 at historic lows in interest rates.

How many investors are investing overseas in markets that they do not understand and where there is no clearly defined exit strategy? How many of them will we be reading about in 18 months time? An understanding of some key economic indicators will help you find the next hotspot.

Assessing the economic issues influencing the property market and looking at simple economic and financial tools can help us choose how best to allocate our 'scarce resources.' You must assess the following:

Property Prices
How prices are determined and what factors affect the supply and demand equation in national and regional property markets.

Top Down Investing
How does economics channel us into a particular market, sector, region or country? How can this help us to discover where to invest (the future "hot spots") and - just as importantly - where not to invest and why?

Interest Rates
Why do they rise and fall? How can we predict a change in trend and what should we do to minimise our cost base?

Inflation
What is inflation? How is it caused? What is its relationship to interest rates (and hence a large element of our cost base)?

Exchange rates
What to look for overseas for growth and diversification in your portfolio. Why is EU membership for some countries propelling the property market? What are the risks?  What effect does a move in the exchange rate have?

Opportunity Cost (of Capital)
Is the investment viable when compared to alternatives? Does "yield" tell me all I need to know?

During the fundamentals course you will be taught MBA-level techniques and tools – skills at the forefront of professional property investment appraisals. You will leave the course with a "checklist" that any property investment must pass in order for it to be viable. 

Education is ongoing and we provide regular Sharkwatch Community meetings where you will have the opportunity to further develop your understanding and use of these fundamental concepts.

For a more in-depth discussion of how the property market and economics are related, please click here to view Dominic Farrell's article Economics in Property Investment

This website is also a resource we are developing for on-going education, market analysis and reports.

Further Property Economics pages on the bewarethesharks.com website: