We have been researching an area in South East London, for which we have compiled an 18 page report. In short, we think property in this area will grow massively over the next five years. Crossrail is coming into the area in December this year, which will put Canary Wharf within 11 minutes and Bond Street within 25 minutes.
The town we are looking at is a sleeping place. Having visited there several times, it seems that the place is completely oblivious to the impact the Crossrail will have on property prices.
Sure they know Crossrail is coming, and prices are set to increase, but it seems completely out of their radar as to the actual impact this will have; as they have never experienced it. There is another big point to take note of. The area we are looking at is the last borough in London where the average property price is below £300,000. This is an important criteria
for signalling growth, as this price point puts properties within reach of first time buyers. The average income of the first time buyer is said to be £25k. Therefore, a couple can qualify for a mortgage of £250k. Combined with a deposit, this means properties below £300k are within the range of affordability. This is the last of 33 boroughs in London, where the property prices are at this level. All other areas which were below this threshold have experienced tremendous growth.
When we look at this sector, we are not dealing with investor speculation. We are dealing with a fundamental need for shelter.
If we examine the supply of housing, in 2007 the Labour government set a target for 240,000 homes to be built a year by 2016. We are nowhere near this target. It is bizarre to note, that for decades after World War Two, the UK used to build more than 300,000 new homes a year. Over a decade ago, the Barker Review of Housing Supply noted that about 250,000 homes needed to be built every year to prevent spiralling house prices and a shortage of affordable homes.
This target has been consistently missed, the closest the UK got was in 2006-07 when 219,000 homes were built.
The consequences are said to have been rocketing prices in London, the South East and some other parts of the country.
This assumption, however, is highly questionable. Prices have gone up due to a more fundamental reason. The issuance of fiat currency, where money has been printed without restriction or any backing, and released into the economy either through debt based instruments or equity. This is the real reason why house prices have been rising on average at unreasonable levels.
It’s clear the supply is severely constrained, and even if it wasn’t, it’s highly doubtful and dubious that property prices would be in the realm of affordability for the average buyer. This is why areas like the one we have been researching are going to be very lucrative in the coming years. They deal with a need at the bottom of the pyramid. This area just happens to be a recipient of one of the largest infrastructure investments the government has ever made.
Get in touch if you would like to find out more.
Detachment and Success
When my talents are deployed with a complete sense of purpose towards a goal, then the chances of success are high. I remember once needing to raise over £40m and I had days left to complete the transaction. The consequences of failing were financially, and reputationally, ruinous. Somehow, I was able to be entirely focussed and goal oriented, but not emotionally attached to the result. This enabled me to manage my stress levels well and operate at a higher level of effectiveness. The funds were raised.
Attachment occurs when the person invests emotion into a particular outcome that s/he will greatly lament if failure ensues. It engenders fear for an outcome that has not yet occurred. Attachment skews our vision. It impairs our judgement. It undermines our ability to communicate and to connect with those with whom we are working. It hampers our objectivity. It is also the cause of our suffering. It is the enemy of success.
I experience the sweet spot of maximum performance and minimum stress when my goal and direction are clear but I am not attached. When I remain detached, but determined, I have the ability to see all the choices available, and my ability to discriminate and decide is more refined, less constrained and more powerful.
Detachment is a competitive advantage.
Abraham Goldberg
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Agony Agent Is Here To Help!
Q: My tenant has only been paying half the rent of what is due, for the last three months. What should I do?
A: First, I would need to know if there is a reason behind the change in payments. More common than not, this type of situation falls into two categories, personal circumstances and property issues.
If this falls into property issues, you need to ask yourself if there is something broken or not working in the property that might be affecting their day to day living. This could be the reason, but even if this is the case then they are not allowed to not pay the rent. They can only withhold this until the issue if fixed, and once fixed they will have to make the payments up to date.
There are a set of rules that a tenant must follow, if they decide to do this. They rarely get this procedure correct.
If this rental payment issue is down to personal reasons, for example, loss of job, then it is best to act fast and serve your tenant notice to leave the property, either by a Section 21, or a Section 8 if they then roll on two months arrears.
I would suggest that you give me a call at the office to discuss this further, and see how we can offer you some free independent help.
Richard Bond
