#21 The B Word - Brexit - What does it mean to Investors and how we can use it to our advantage

In today’s episode, David dares to share his views on the B word. BREXIT. What it means for property investors and how you can use it to your advantage. Discover the reasons behind the property markets booms and busts. The trigger point of downturns and the circumstances of property rises. Tune in today to hear the lessons David has learned through his decades of experience investing in property, in a variety of economic climates. KEY TAKEAWAYS In 1974 was a property crash. House prices were booming and they had to go down. But what was the trigger? David believes it was the rise in oil prices that caused the market to crash. But by 1981 property prices had boomed higher than even the peak before the crash in 74. Yet they were set to crash again, but this time a different trigger. Probably the political economy enforced by the Thatcher government at the time. From 1981 - 1991 the property market soared with prices booming for a decade. Until another economy driven downturn in prices. At this time the UK was in the ERM (the forerunner of the euro) and at the point of leaving, UK interest rates were at 30%. In 1996 the buy-to-let mortgage was born. We could now go out and buy investment properties for roughly £25,000 which today would be worth £100,000 - £130,000. Property prices continued to rise and rise until 2008 when it changed again and there was a turn in the market. Economically the 2008 crash was inevitable. But what triggered it? The point is we don’t necessarily know and ever since the prices have continued to grow steadily until today. To serve our investors we must know the market and we know that the underlying principles of property prices are the same. It will either go up, or go down. Are we investing for cashflow? Or for capital growth? Over the last 10 investors have generally been investing for cashflow. Adding value to properties with strategies such as multi-lets and serviced accommodation. Deal Packaging is the ONLY strategy that works in any economic situation. In a rising market, we add value with multi-lets and serviced accommodation. And in a market that’s falling, we can source BMV deals, and find the right house in a falling market. BEST MOMENTS “There will be a crash in property prices and then a boom. The boom will see prices rise higher than they were when they crashed.” “The average inflation rate during the Thatcher period was 9.9% an unthinkable amount in today’s economy.” “The cycle always moves on, it zigs and zags.” “The property market ebbs and flows, it goes up and it goes down.” “We have been working in a rising marketing for the last 10 years. We do know that property prices will fall, but we don’t know when” “Serviced Accommodation produces multi-let returns on a single-let property.” ABOUT THE HOSTDavid is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004. In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him and he enjoys empowering other landlords by sharing the knowledge he has gained. The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours. CONTACT METHODDavid’s LinkedInDavid’s Facebook