Top Adding - Real Estate

‘Summer of love’
Apparently fashion goes in 20 years cycles. If true, this means that we should all be attired in fluorescent coloured clothing and flowery ‘dayglo’. For those old or indeed young

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

enough to remember - 1987 was the ‘rave’ inspired ‘Summer of Love’.

Economic cycles
Just like fashion, economics tends to follow cycles. It occurred to me that maybe economics and more specificall

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

y housing economics is mirroring this fashion cycle and that we are at a similar point to where we were in the late 1980’s.

Twenty years ago the housing market had experienced a period of rapid inflatio

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

n from the early 1980’s and affordability was becoming stretched. In fact according to the CML affordability was at the lowest point in 1990 when interest payments as a percentage of median income were

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

a massive 26.5%.

Today following a series of interest rate rises using the same measure, it is still only in the high teens. However, there is no doubt over the last few months it is increasingly diffi

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ult for landlords, including me to finance their mortgage payments out of their rent.

This reminded me of what a struggle it was when I first became a landlord almost 20 years ago. Now just like then th

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

e media is full of stories about an imminent crash following the dramatic house price rises.

How realistic are these claims?

Why it’s different this time?
The boom in house prices 20 years ago was

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

followed by a dramatic bust in the early 90’s with thousand of owners being cast into negative equity, often for many years. I spent eight years with a property waiting for it to recover its’ value.

A

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

re we facing the same scenario almost 20 years on?

No I don’t think so. The difference now compared to then can be summed up by a little word; ‘stability’. Twenty years ago following on from a dramati

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

c economic boom after the depression of the early 1980’s; an economic crash and rising unemployment sent shock waves through the housing market which caused one of only 3 falls in the housing market sin

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

e the war.

The main reason why I don’t see things repeating themselves this time is that the economy is still robust, company profits are at record levels and unemployment low. There are no signs of the

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

conditions to cause a dramatic fall. Whilst this remains the case it is hard to see such a ‘shake out’ of the market. Much more likely is the widely vaunted ‘soft landing’ as growth rates slow. This

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

view leads me to think about the future direction of my portfolio.

Property as a ‘cash cow’
Ever since starting my portfolio I have stuck by an approach that has attempted to leave as little money

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

in my investments as possible. Instead preferring to extract the capital to use else where. When I first started, this was a prerequisite as limited capital resources meant the only way of purchasing a

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

property was to push things to the limit.

No longer do I need to do this. In looking at my portfolio I have realised that I should no longer bank on using property as a ‘geared play’ on a rising marke

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

. This is where you borrow money to buy an asset which grows in value and thereby gives you a much higher return on your initial investment capital (your deposit).

I am now looking to use my property i

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

nvestments as ‘cash cows’. This is using the regular income generated from rent to pay down the debt, so giving me ultimately a debt free asset.

This was how ‘old school’ property investing was done, w

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ell before interest only financing was even thought of. It has advantages. It reduces my exposure to rising interest rates and should secure my future capital barring a sudden collapse in capital value

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

s which I have already said is unlikely.

Therefore whilst we may end up with the fashions of 20 years ago, we should with any luck avoid the excesses of its’ housing market. Think of employing ‘old sch

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ool’ property investing techniques as a way of securing your long-term financial security. To my mind, the desire for this never goes out of fashion.

HAWKEYE – a unique perspective on property investin

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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We're only a few fields away from coming to our conclusion of this medical billing series on the GU0 record, one of the most complex records of electronic billing. In this installment we pick up with field number 66.

It is truly amazing when you are the Founder of a Company how many times you are approached by Venture Capitalists who have funded your competition and wish to buy your company. They wish to use such an acquisition to grow their market share without earning it. Indeed such a strategy is worthy of mention and yet these Venture Capitalists are often arrogant and assume everything is for sale.

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