BREXIT! What we Need to Know as Deal Packagers

‘There is going to be a boom and there is going to be a bust what’s going to come next, we don’t know’ This episode is about property and Brexit, Is it making an impact on the market? and if it is making an impact, what is that impact?  going forward what difference will it make? As deal packagers and property investors we are affected by what’s going on in the world David has researched what the current situation is and what the people who work in the property space think are the most likely possibilities depending on the outcome of Brexit. Listen in and find out what the drivers for house prices are and why we are always between a boom or a bust in the economy.   KEY TAKEAWAYS What drives house prices? Interest rates - these are at historic lows currently. Housing demand – currently this is high. Wage growth against the cost of houses - Historically in the UK it has been increasingly difficult to buy. House supply -  there are not enough houses and the population is growing. The key to house price growth is growth in the economy. Something is going to be the cause of the next property crisis or the next property boom. The accepted possibilities If we come out in an orderly fashion with a deal – the uncertainty will disappear and more properties will come to market. Confidence will be restored and there may be a boom. Staying in the EU could have the same outcome as the result is the restoring of certainty. If we come out with a no-deal – there will be a shock which will possibly result in a small fall in property prices. Within 2 -3 years with agreements in place things will move forward and the confidence gained will result in a return to the norm. Resolution is the key; uncertainty causes the most negative impact on the property market. In any event, the property market will turn at some point, there will be a crash and there will be a boom. Is it going to be Brexit or something else that affects the economy and in turn house prices?   BEST MOMENTS ‘The concern across the rest of the world is very small economic growth’ ‘Real wages are growing slowly which makes house affordability better in the North of England. In London and the South East affordability is a problem’ I’m hearing about significant down valuations compared to 2 years ago’   VALUABLE RESOURCES  Property Sourcing Profits Podcast https://www.progressiveproperty.co.uk/ https://unlimited-success.co.uk/ https://www.facebook.com/groups/progressivepropertycommunity/   ABOUT THE HOST David 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 METHOD https://www.linkedin.com/in/david-siegler-7b126316/ https://www.facebook.com/DavidSieglerInvestments/