Most millionaires don’t just rely on one source of income. In fact, I’ve heard that the average millionaire has at least three income streams, with many having five to seven. Why? Because they understand a simple truth—if you depend entirely on one source of income and it stops, you’re in trouble.
But many investors and professionals do exactly that. They rely solely (or mainly) on property. The problem? If that income dries up — due to market downturns, interest rate hikes, or government policy — they’re one step away from financial disaster.
Diversification Within Property is a Great Start
When I started, my first instinct was to diversify within property. Different types of properties: flips, single lets (buy to let), and later on HMOs. That’s all good, and it reduces risk to an extent.
Then I diversified again, to an extent, by recording my knowledge and experience in property, because amazingly to me, it turned out that some people were happy to pay for it! So, I wrote articles for magazines and newsletters (paid of course), self published books, created courses, and did guest slots at live trainings. Again, a nice extra income, but still in property.
But after years in the game, I’ve learned something important: even with multiple property strategies, and non-property, property related income streams (if that makes sense) you’re still exposed to the property market.
And property is cyclical. When it’s up, we feel like geniuses. When it’s down? Well, that’s when people start to panic. And all of those income streams can reduce from a flow to a trickle.
Should You Look Beyond Property?
Don’t misunderstand me. I’m not saying abandon property. Far from it. Property is one of the best wealth-building vehicles out there (as long as you can adapt as the economy, market, tax and legislative environment changes).
But at some point, we should all think about an additional income stream—one that’s not tied to bricks and mortar.
This could be: A side business (preferably one that doesn’t demand too much of your time) Buying an existing business instead of starting from scratch Or even alternative investments like gold, commodities, or carefully chosen crypto
Now, I think I should say, before I go any further, this is just the musings of an old(er) man, so please don’t take any of this as financial advice. This is just for education and
entertainment, so do your own research before you do anything, and certainly don’t listen to me.
It’s about having options. It’s about resilience. Because let’s be honest, none of us can predict the future. We like to think property will always be a great investment, and historically, it has been. And hopefully it will continue to be. But markets shift, policies change, and unforeseen things happen.
Buying Businesses—Like Buying Property?
One of the things I wish I’d known earlier is that it’s possible to buy businesses much like you buy property. Some businesses can be acquired with little upfront capital, similar to creative property financing. Some even generate cash flow from day one, and you can pay the seller from the income the business was generating anyway!
How cool is that?
If the idea of running a business sounds like hard work, remember, it doesn’t have to be hands-on. Some investors buy businesses and put managers in place, much like hiring a managing agent to run a buy to let portfolio.
The Key Takeaway: Hedge Your Bets
I’m not saying go all-in on a new venture tomorrow. But keep an eye out for opportunities. Whether it’s a small side business, buying into an existing company, or alternative investments, having something outside of property can give you peace of mind.
Property is a great basket. But let’s not put all our eggs in it. Just in case.
After all, we all know the next property crash is coming.
We just don’t know when.
Here’s to successful property investing!
Peter
Peter Jones
Ex-Chartered Surveyor, author and property investor. https://thepropertyteacher.co.uk
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my
multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to: thepropertyteacher.co.uk/the-successful-property-investors-strategy-workshop
