There are only two ways to make money in property. One is in the increase in price, where you make the bulk of the money; and the other is on the yield. The general principle is, as you get closer to central London the growth is skewed more on the capital growth side, and as you head up north the growth is not so strong, but you can be assured of a solid yield, often double digits.
This is not set in stone, however, as many areas go through cycles. For example, recently many areas in Birmingham have experienced the highest growth in the UK. Luton has had its spurt of growth due to its proximity to King Cross by rail. This was an area which was voted as the worst borough in the UK, much to the protest of the then Mayor.
We had purchased several properties there, during the pre credit crunch years. This had been driven by the no money down deals we were getting, along with the cash positive income the properties were generating. However, the tenants the properties were attracting left much to be desired. So, we ended up selling the small portfolio we had acquired. In retrospect, perhaps this wasn’t the best decision. However, in property it’s best to keep your gaze firmly on the present terrain and anticipating the future. The number of times I have had investors lamenting on whats ifs is countless.
In short, property investment is like standing half way on a hill. If you look back you will realise how much the market has increased and where you would be if you had invested earlier on. However, there is no point in looking behind, as time travels only forwards. Better to see what opportunities you are currently missing, and where the market is going to go in the future. This is the vision required to make money. Not a retrospective lamentation. Currently, the market is uncertain, people cite Brexit. But, I’m not sure if it has any real impact on the property prices apart from the one in their heads. Don’t get me wrong, I understand, and know of HNIs who have taken a break from doing business in the UK until the negotiations have been concluded. However, I’m unsure how exactly this affects a £500k BTL investment.
One reason quoted, is the demand from the European immigrants will decrease, and therefore, the market for rentals and purchase will decrease. Given the variegated demand for housing I don’t feel there’s much substance to this claim. Regardless of whether real or imagined, we are in an unstable market. Therefore, it’s a good time to invest; assuming the price you come in at is severely discounted from the market value.
We are currently accessing a stream of probate properties, which intrinsically have a discount attached to them. The prices we are getting these at are exceptionally cheap, so do get in touch soon if you are interested.
Consciousness – A Competitive Advantage
For us to compete and succeed in this world, we must find some advantage over our competitors. Being effective in business is so much more than simply under-cutting our competitors. We must add more value. We must offer superior quality and service. It is a demanding world.
This is why some might consider consciousness as the ultimate competitive advantage. It is from our state of consciousness that thoughts emanate. And thoughts lead to action. And actions produce results. Thus, our consciousness shapes our lives.
So, how can we transform our consciousness and maintain that positive state?
The answer lies in meditation. Meditation shifts one’s state of consciousness. It can be used for more energy, for clarity of thought, in order to generate more positive thinking and for broadening one’s vision and perspective. Meditation is also effective in dissipating one’s fears.
Meditation can be likened to Himalayan water cascading down the mountain-scape and washing away the dirt and soil accumulated on the flatlands. In the same way, meditation gives one access to higher, more powerful and purer states of consciousness, which can then permeate one’s consciousness, triggering better more perspicacious thoughts that trigger actions and results that improve one’s life.
This inevitably spills over into being able to transact better in business.
Agony Agent is here to help!
Q: Is lowering the rent, in exchange for tenants decorating, a good idea?
A: A while ago, I let a flat which was in need of a lick of paint. The prospective tenant’s offered to paint the flat for a reduced rent. The landlord agreed, and purchased a neutral coloured paint, according to the tenant’s choice. The landlord lowered the rent by £30 per month.
Advantages for the landlord
• No need to get decorators in to do the work, which would cost a lot more than reducing rent by £30 per month.
• Also, getting decorators in would mean having to keep the property empty for at least another week, which would cost even more money.
Advantages for the tenant
• They’ll save money
• They’ll live in a freshly decorated property
There were a few rules that needed to be agreed:
• Work had to be completed to a high standard. If not, the work would need to be redone at the tenant’s expense (within reason)
• We provided a strict definition of “high quality” and would be inspecting at every step, so there’s no confusion
• There was a set budget
On inspection, it was found that the works had been done to a very high standard. Both landlord and tenant were happy.