Welcome to my Property Blog, a “Dumping Ground” for my thoughts surrounding the property market and the challenges faced by both investors and residential property owners.
Many of the articles and the issues discussed have been presented at bespoke property investor events or published on my social media platforms; they are designed to help keep property owners in my investment areas of Plymouth and Reading abreast of the property market and the issues effecting investment strategies and pricing.
Blog 1
Blog 1
Don’t Be A Property Investment Sheep!,,,,,
There’s a lot of what I affectionately call “Noise” out there on social media and contained within email campaigns at the moment regarding property investment training in the “Must Have” strategy for 2020 post lockdown; the vast majority of which is complete rubbish and here’s why!
In truth the property investment market is a highly specialised and complex investment market place where it is far easier to lose money via short term investments than it is to make money. So my advice; don’t trot along to listen to anyone saying this is the “Must Have” strategy for 2020 going into to 2021, because there has never been a one a “One Size Fits All” and “Must Have” investment strategy, let alone now!
If you feel you want to spend money investing in your property investment education, (and if undertaken correctly this will be a tremendous benefit), my advice would be to start with a property investment training provider who qualifies your investment aims and the ability you have, (in terms of time and finances available), to achieve these aims, before they ask you for your money. I would caution about the perils of listening to a property investment training provider who is so shallow and narrow in their approach and level of investment expertise, that they are still foolish enough to be peddling the lie that one property investment strategy fits all. And this is important because as with all our dreams, sometimes the best person to listen to is the person who saves you from yourself and stops you from losing money you can ill afford to lose!
And besides this can’t be right; for example I have received a barrage of emails recently trying to sell me a “Must Have” “Serviced Accommodation Master Class” because it is the “Must Have” property investment strategy for 2020! Now in certain areas of the country and for a certain profile of investor, they may be right, but here’s the thing; in the majority of cases they will be wrong and for most people all they will achieve is to hand over in excess of £1,000 and an awful lot of time and effort to find this out.
So let’s look at why? Pre lockdown the Serviced Accommodation strategy had been a growing investment sector in the years leading up to the lockdown, but what about now? As the “Go – To” property investment strategy for those with little capital of their own I can’t think of a worse place to be right now; the model was always high risk requiring continual high occupancy levels to make it profitable.
Let’s not forget that in the vast majority of cases you as the property investor are effectively leasing the property from the current owner, who will probably be another investor, and that overhead will not be going away. So my first question is how has this overhead been met during the last 4 months, with no business or leisure travel to talk of, and how likely are levels of business travel and/or leisure bookings, to return to pre lockdown levels, especially now that we have all found new and alternative ways of working?
This is my fear with the Serviced Accommodation model and I feel it is madness to expect that model to return to pre-lockdown levels of financial return, so how is this model likely to be looking now, now that those invested in this space are re-running their numbers? My prediction is that this will be the next expose’ in the Sunday broadsheets; the numbers of badly trained property investors who have taken leases out on buildings, in some cases redeveloping them from their original purpose, who can now not fulfil the obligations of their lease agreement with the current owner, so now looking at foreclosure as their only option.
Sadly this scenario is something that is very likely, when their model is competing head on for this reduced level of business with the corporate hotel suppliers in the sector; those who have far deeper pockets to survive the likely “Race To The Bottom” on the room rates required until excess capacity is removed from the market.
Unfortunately it is also very likely that how these arrangements will have been sold to the existing property owner will come under the legal spotlight and for those investing in the model, who didn’t take the correct and “Fit For Purpose” legal advice, in terms of the contract to secure access to the property, the bailiffs could come running right to their doorstep.
So with the model failing due to drops in demand, businesses failing and properties coming back on to the market, how can the Serviced Accommodation model be the “Must Have” property investment strategy for everyone in the near future? And this is before we get into the meaty issue of the demands of legislation due to Covid 19; cleaning, shared facilities etc. and how compliant or not their property may be? In fact many operators in this space, just like hotels and other suppliers of serviced accommodation, may find themselves burdened with heavy costs associated with redesigning properties combined with reduced consumer demand; and let me reassure you all that more money going out combined with less money coming in, is never a good trading landscape to be operating within.
For what it’s worth, and there are positives – after all Covid 19 has been a great leveller so I would listen to as many so called “Gurus” and property investment trainers as you can, all opinions are valid but remember 2 things; no one has a crystal ball and can predict the future and that even a broken clock is right twice a day!
If it were me, I would only move from opinions to handing over my money, if the individual involved was honest and admitted that they have absolutely no idea what is coming, so therefore what the “Must Have” investment strategy is likely to be! They are not more capable than all the governments of the world, seasoned investment professionals and the highly educated scientific communities, all of whom admit they have no idea of what the outcome will be either.
Remember that everything everyone has achieved up to the lock down counts for nothing in the future. We have all had many successes in our lives, some more than others, but it does not mean that anyone knows where we are heading, and this is why the property training landscape can be a dangerous place for those with too much time, some money and experiencing a little desperation.
In my opinion the people to speak to are those who say that they have no idea, but that for them the best strategy will be this,(?). However, they would have to be honest and say why, and to qualify their thinking, and this involves two very important thought processes!
The first part is the property investment strategy itself and the area within which they will be deploying this property investment strategy. Contrary to many myths, all property investment strategies are not viable in all areas of the coiuntry; an in depth understanding of the location and the property demand is pivotal in the success of any property investment strategy. I would also want anyone I am giving my money to, to “Have Skin In The Game” themselves and be investing! Before you handover your money ask them, are they investing in this strategy or not? If they are ask for proof; if they are not then ask yourself why? In most cases it will be because they are rolling out past successes and trying to convince you that it will still be a viable investment strategy!
The second part of this process is the harsh qualification process of your property investment aims and the ability you have to deliver on them. This is a particularly sore subject with me, having been witness to the tactics deployed by some of the largest property investment training companies in order to fleece people of their money! And I don’t say “Fleece” lightly; I have seen rooms full of people pumped up and fleeced by these companies, of money they can ill afford to spend and on strategies that just won’t work for them.
It can’t be long before this is exposed by the press and regulators come to the sector, but in the meantime be warned and remember the following at all times.
• Not all property investment strategies work everywhere!
• Property Investment is a highly skilled job and a highly competitive market place!
• Successful property investment is a full time job!
• As with all professions, not everyone is capable of succeeding; it is not for everyone and the majority do not succeed in the long term!
• All property investment strategies require access to capital.
• Successful property investment professionals require access to the right investment opportunities; this is another highly skilled business in itself!
So in finishing, my advice; start with your aims in mind and reverse engineer the process from there to take account of what you want to achieve, the time you have and the finances you have available. In truth, there is potential for any property investment strategy to work somewhere, provided you have the time, finances and marketing expertise to succeed; and I say marketing expertise because just like everyone else running a business, it doesn’t matter what business you run, first and foremost you are running marketing business and if you don’t have the expertise to run and deliver this first, in order to generate property investment opportunities you require, then sadly you are going to fail.
So should you come across a property investment training company that is investing, not just training, i.e. just re-heating the past, and is prepared to sit with you to qualify your investment aims and the ability you have to succeed, that would be where I would be advising you to spend your money; as yet I have not found one!
However, if you would like to arrange a no obligation exploratory conversation regarding the issues raised in this article, or you are a landlord or property investor and would like to understand more about our bespoke strategies designed to help you to dispose and exit from your investment properties in a financially sound and tax efficient manner, then please do not hesitate to contact me directly via my Facebook page or via LinkedIn, (if we are 1st Connections), or via a connection request worded as follows; “I Would Like To Discuss Your Services And Property Solutions For Landlords And Property Investors” or “I Would Like To Discuss Your Views On Property Investment Training” if we are not already 1st Connections.
I look forward to hearing from you.
Andrew Banning.
Blog 2
Blog 2
WHAT NEXT FOR PRIVATE LANDLORDS?
As we await the worlds return to normal after the restrictions imposed during the lockdown, this will no doubt be an anxious time for many private landlords.
As much as it is prudent to acknowledge that the profitability of differing property strategies varies hugely due to geography and the incumbent socio-economic demographic, I think it is fair to say that many private landlords will see both, day to day and short to medium term profits come under attack.
The main reason for this, and I speak as a property investor and property professional myself, is the uncertainty brought on by the government's handling of the issue. Now the last thing I want to do is get immersed in the decision making process, but whether we like it or not, the lockdown and the restrictions associated with it will, I predict, have a seismic effect on some property investment models, and not all of it will be positive.
Although different from region to region, government policy has changed consumer behaviour and will eventually drive many hitherto successful businesses into bankruptcy, causing big increases in unemployment.
Now as much as you could argue that some of these businesses were “Zombie Businesses” and due to fail in the near future anyway, not all the businesses likely to fail fall into this category; and the likely amount of business failures in such a short space of time, (and before the world of commerce has created the new jobs to replace those to be lost), will mean that a big rise in the numbers of unemployed will be unavoidable.
And this misery will soon hit those private landlords with tenants in buy to let investments who lose their jobs, and with changes to legislation making the eviction of non-paying tenants more difficult, any prolonged period of non-payment of rent is likely to take down many of the buy to let investments already struggling to remain profitable prior to the lockdown; whether due to changes in taxation and/or non-viable levels of return.
But there is a further unknown, that of how business and leisure travel have been changed by the lockdown, especially business travel. Now that we have all found other more cost and time effective ways of working, leveraging technology rather than racing round the country for meetings, just how shaky does the whole Serviced Accommodation model look now, especially in the larger conurbations?
Serviced Accommodation had been the investment model of choice for those with little capital of their own to invest so, of course, it has therefore been pushed to the extreme by all the shady " Hose You Down" property investment training companies over the last 2-3 years. In reality I can think of no more over supplied portfolio of investment property post lockdown, than those properties that have been redeveloped for the Serviced Accommodation sector.
Not all can find the money to redevelop properties and the aligned strategy again for any new and upcoming demand, so for landlords in this sector, and whose property investment models need professional business travellers or students to remain profitable, the future could be pretty challenging
Adding to these challenges is the continual lack of competent professional advice and investors looking to acquire their properties. I have written many times about the challenges property investors face when looking to dispose of theirs investment properties, most recently in my article; The Majority Of Estate Agents Can’t Help Landlords!
Luckily private landlords looking for advice on, or exit strategies from their current investment property or properties have someone to call; someone looking to acquire investment properties for themselves and who can provide the solutions provided to meet your financial return, taxation and property disposal aims.
I am not an estate agent, (whose services model can't help private landlords or property investors), I am a property investment and management professional specialising in the management of property assets and the highly specialised disposal and sales solutions required by private landlords, including;
1. Guaranteed rental and property management agreements for up to 5 years; providing guaranteed returns and complete piece of mind.
2. Access to investors looking to acquire property; the serious property professionals and those who don't look to purchase via traditional estate agents.
3. Immediate commitments to purchase.
4. The creative strategies required to meet the disposal and sales ambitions of landlords, property investors and residential property owners, in this challenging and likely soon to be falling property market.
My property solutions consultations are free to landlords, property investors or residential property owners needing to sell their property immediately and/or who need to build a creative investment or disposal solution to meet their immediate property investment requirements in both a profitable and tax efficient manner.
To arrange a no obligation exploratory consultation call to explore how I can assist landlords, property investors and residential property owners dispose and exit from their investment and/or existing properties in a financially sound and tax efficient manner, please do not hesitate to contact me directly via email at andrewb@abps@gmail.com, my Facebook Page or via LinkedIn, (if we are 1st Connections), or via a connection request worded as follows; “ I Would Like To Know More About Your Services For Residential Home Owners, Landlords And Property Investors!” if we are not already 1st Connections.
I look forward to hearing from you.
Andrew Banning.
Blog 3
Blog 3
The Majority Of Estate Agents Can’t Help Landlords!,,,,,,,,
Now let me put some context into my statement; of course on some levels they can, especially when it comes to tenant finding and property management services during a tenancy period, but this is only a small proportion of the services a landlord will require access to during the period of ownership in their investment property.
Don't get me wrong, good estate agents provide some excellent levels of service throughout the UK, I use them myself, but the truth is that the property market has evolved into a very specialised and complex trading landscape and the vast majority of estate agents have not invested in their own education, the education required in order to keep abreast of the evolution taking place in the property market, and therefore the services required by landlords and property investors.
So let’s look at why traditional estate agency services don't supply what a professional landlord requires? Well just like every business an estate agency is a just “Tool” and just like any other “Tool,” they have to be the right “Tool” for the job, and this is why the vast majority of estate agents don't provide the options and services required by landlords and property investors looking to sell or purchase their investment properties.
Let's explore why and look at the selling process? Well the first thing to remember is that the majority of private landlords, (approximately 95%), only own one investment property, and the majority of those struggle to remain profitable over the entire period of ownership in their investment, although this another far meatier subject and not any fault of the estate agent.
So most landlords looking to sell their investment properties approach an estate agent, because they know no better, (when it comes to selling their investment property), the majority of which will need to keep the existing tenant in situ to cover their overhead whilst the sales process is under way.
Now this situation drastically reduces their sale and disposal options; they can't sell in these circumstances to a residential buyer because they have a tenant in situ, so if they want to attract residential buyers they must first remove the tenant and prepare the property for sale which can take a long time, and that process will of course mean that they then lose the rental income they need to service their overhead. I call this a “Lose – Lose” situation for the landlord.
So with residential buyers excluded they are just left with investors and the property investment landscape is also a highly complex investment, sales and purchase landscape, now far beyond the grasp of most residential estate agents.
The likelihood of an investor purchasing via an estate agent is very unlikely, why? Well investors tend not to deal with estate agents as they appreciate that their sometimes complex investment offer needs to delivered and discussed direct with the vendor, not via a third party estate agent who has not been trained in the delivery of complex property investment strategies.
So invariably a current landlord with a viable investment proposition misses out and doesn't get the return possible because they are selling to the wrong audience, via the wrong platform.
Think about it logically; you are a landlord and you have a tenant in a property right now, for whom there may be some uncertainty surrounding their ability to pay their rent, yet you want to entice an investor to purchase your property right now, and for a top price? In truth you are very unlikely to get this scenario over the line via a traditional estate agency and you will be left wondering why? And it will all be because you are not speaking to the professionals who can provide the solutions to your aims.
Luckily landlords looking for exit strategies from their current investment property or properties have someone to call; someone looking to acquire investment properties for themselves and who can provide the solutions provided to meet your financial return, taxation and property disposal aims.
To arrange a no obligation exploratory conversation regarding how I can assist landlords and property investors dispose and exit from their investment properties in a financially sound and tax efficient manner, please do not hesitate to contact me directly via my Facebook Page or via LinkedIn, (if we are 1st Connections), or via a connection request worded as follows; “I Would Like To Know More About Your Services For Residential Home Owners, Landlords And Property Investors!” if we are not already 1st Connections.
Blog 4
Blog 4
WHAT NEXT FOR PRIVATE LANDLORDS?
As we await the worlds return to normal after the restrictions imposed during the lockdown, this will no doubt be an anxious time for many private landlords.
As much as it is prudent to acknowledge that the profitability of differing property strategies varies hugely due to geography and the incumbent socio-economic demographic, I think it is fair to say that many private landlords will see both, day to day and short to medium term profits come under attack.
The main reason for this, and I speak as a property investor and property professional myself, is the uncertainty brought on by the government's handling of the issue. Now the last thing I want to do is get immersed in the decision making process, but whether we like it or not, the lockdown and the restrictions associated with it will, I predict, have a seismic effect on some property investment models, and not all of it will be positive.
Although different from region to region, government policy has changed consumer behaviour and will eventually drive many hitherto successful businesses into bankruptcy, causing big increases in unemployment.
Now as much as you could argue that some of these businesses were “Zombie Businesses” and due to fail in the near future anyway, not all the businesses likely to fail fall into this category; and the likely amount of business failures in such a short space of time, (and before the world of commerce has created the new jobs to replace those to be lost), will mean that a big rise in the numbers of unemployed will be unavoidable.
And this misery will soon hit those private landlords with tenants in buy to let investments who lose their jobs, and with changes to legislation making the eviction of non-paying tenants more difficult, any prolonged period of non-payment of rent is likely to take down many of the buy to let investments already struggling to remain profitable prior to the lockdown; whether due to changes in taxation and/or non-viable levels of return.
But there is a further unknown, that of how business and leisure travel have been changed by the lockdown, especially business travel. Now that we have all found other more cost and time effective ways of working, leveraging technology rather than racing round the country for meetings, just how shaky does the whole Serviced Accommodation model look now, especially in the larger conurbations?
Serviced Accommodation had been the investment model of choice for those with little capital of their own to invest so, of course, it has therefore been pushed to the extreme by all the shady " Hose You Down" property investment training companies over the last 2-3 years. In reality I can think of no more over supplied portfolio of investment property post lockdown, than those properties that have been redeveloped for the Serviced Accommodation sector.
Not all can find the money to redevelop properties and the aligned strategy again for any new and upcoming demand, so for landlords in this sector, and whose property investment models need professional business travellers or students to remain profitable, the future could be pretty challenging
Adding to these challenges is the continual lack of competent professional advice and investors looking to acquire their properties. I have written many times about the challenges property investors face when looking to dispose of theirs investment properties, most recently in my article; The Majority Of Estate Agents Can’t Help Landlords!
Luckily private landlords looking for advice on, or exit strategies from their current investment property or properties have someone to call; someone looking to acquire investment properties for themselves and who can provide the solutions provided to meet your financial return, taxation and property disposal aims.
I am not an estate agent, (whose services model can't help private landlords or property investors), I am a property investment and management professional specialising in the management of property assets and the highly specialised disposal and sales solutions required by private landlords, including;
1. Guaranteed rental and property management agreements for up to 5 years; providing guaranteed returns and complete piece of mind.
2. Access to investors looking to acquire property; the serious property professionals and those who don't look to purchase via traditional estate agents.
3. Immediate commitments to purchase.
4. The creative strategies required to meet the disposal and sales ambitions of landlords, property investors and residential property owners, in this challenging and likely soon to be falling property market.
My property solutions consultations are free to landlords, property investors or residential property owners needing to sell their property immediately and/or who need to build a creative investment or disposal solution to meet their immediate property investment requirements in both a profitable and tax efficient manner.
To arrange a no obligation exploratory consultation call to explore how I can assist landlords, property investors and residential property owners dispose and exit from their investment and/or existing properties in a financially sound and tax efficient manner, please do not hesitate to contact me directly via email at andrewb@abps@gmail.com, my Facebook Page or via LinkedIn, (if we are 1st Connections), or via a connection request worded as follows; “ I Would Like To Know More About Your Services For Residential Home Owners, Landlords And Property Investors!” if we are not already 1st Connections.
I look forward to hearing from you.
Andrew Banning.
Blog 5
Blog 5
IS IT MISSION IMPOSSIBLE FOR PRIVATE LANDLORDS?,,,,,
As one of the country’s leading asset acquisition professionals this has been an interesting period of time for asset markets,
especially the housing market, and I predict that the next 6 – 18 months will be a very turbulent and volatile trading environment.
The government’s decision to shut down the economy, (the merits of which I don’t wish to explore here), will have a seismic effect on the values of some assets, not just housing, and not all of it positive.
Now this is not to say that for a few, those who can think creatively in a market with falling prices and who are prepared to take a gamble, that this period of time won’t be lucrative in the long term. However for many Private Landlords this will continue to be a very challenging period because a “Perfect Storm” is forming over many sectors of the property market.
Having already had to navigate the many challenges thrown at property investments recently, many private landlords will be holding loss making problems, not the dream they were sold when they invested; that of passive income and large amounts of capital growth. In fact this dream has remained elusive for the majority of private landlords and property investors.
This is not the article to explore the many reasons why many property investments fail, I have covered many of the reasons effecting profitability in some of my recent articles; The Majority Of Private Landlords Are Losing Money On Their Investment Property! being just one of them, but having worked and invested in asset markets for 30 years it is my belief that house prices will come under negative pressure during quarter 4 of 2020 and going into the first 2 quarters of 2021.
Although there has been an increase in enquiry activity for estate agents in many of our towns and cities since lockdown ended, the funding market is making it nigh on impossible for any chains including a first time buyer requiring high loan to value mortgages, to reach a stage of completion. Combine these difficulties with evolving “Supply and Demand” ratios and the inevitable rises in business failures and unemployment, and I feel for sure that the next 18 months will be a very turbulent time for all asset markets, and housing will be no different.
However it is important to stress that, as with all asset markets, I think there will be differing levels of price performance determined by the profile of property, (therefore the demand), as well as geographical and socio-economic drivers; so I do not subscribe to the mantra that the whole market will fall by a certain percentage amount. Some properties and areas will outperform the overall market decline, some will perform far worse.
So what does this mean for private landlords? Well for those looking to offload loss making investments and/or those looking to exit from some or all of their property investments, it will be a challenging time; further complicated by the fact that getting the right strategic advice will be difficult. The market has evolved far faster than the professionals required to navigate the market have been developed, so many will struggle to find the answers they require, and the advice that is appropriate for their property investment profile, the tenant profile and the geographical location; all of which is paramount.
With most investors now waiting for price reductions and the ability to drive hard bargains, buyers will be thin on the ground, especially those buying under the far more complicated circumstances of when there are tenants in situ.
Luckily private landlords looking for advice on, or exit strategies from their current investment property or properties have someone to call; someone looking to acquire investment properties for themselves and who can provide the solutions provided to meet your financial return, taxation and property disposal aims.
I am not an estate agent, (whose services model can't help private landlords or property investors), I am a property investment and management professional specialising in the management of property assets and the highly specialised disposal and sales solutions required by private landlords, including;
1. Guaranteed rental and property management agreements for up to 5 years; providing guaranteed returns and complete piece of mind.
2. Access to investors looking to acquire property; the serious property professionals and those who don't look to purchase via traditional estate agents.
3. Immediate commitments to purchase.
4. The creative strategies required to meet the disposal and sales ambitions of landlords, property investors and residential property owners, in this challenging and likely soon to be falling property market.
I offer property solutions consultations that are free to landlords, property investors or residential property owners needing to sell their property immediately and/or who need to build a creative investment or disposal solution to meet their immediate property investment requirements in both a profitable and tax efficient manner.
To arrange a no obligation exploratory consultation call to explore how I can assist landlords, property investors and residential property owners dispose and exit from their investment and/or existing properties in a financially sound and tax efficient manner, please do not hesitate to contact me directly via email at andrewb@abps@gmail.com, my Facebook Page or via LinkedIn, (if we are 1st Connections), or via a connection request worded as follows; “I Would Like To Know More About Your Services For Residential Home Owners, Landlords And Property Investors!” if we are not already 1st Connections.
I look forward to hearing from you.
Andrew Banning.
Blog 6
Blog 6
Have Property Sellers Missed The Boat On Price?,,,,,,
Well this article will no doubt divide opinion, depending on your situation, and bearing in mind none of us have a crystal ball, all any one of us can do is make a decision for themselves and then move on from there!
So what do I think? Well I do think those needing to sell at the moment have missed the boat on price and I also think that prices, in the main, will take years, (probably a decade), to return to the pre lock-down levels; and I say in the main because the UK property market is a highly regionalised market, one very sensitive to geographical location, socio-economic demographics and where the profile of property also plays a massive part in pricing. Plus there is the fact that I only invest in 2 areas of the country, Plymouth and Reading, so as a consequence I am only immersed in the drivers affecting property prices in these 2 markets.
This is an important distinction because no one is an expert on the entire UK property market, in the same way as no one is an expert on any entire asset market. Although almost uniquely in living memory, I think a perfect storm is forming over the entire property market in the UK at the moment, where there will be very little shelter from the barrage of negative influences coming to all asset markets during the last quarter of this year and into the first half of 2021, not just the property market.
The problem is that the pricing of any asset, (and property is no different), is driven by sentiment and a critical price performance influencer; “Supply and Demand!” Now “Supply and Demand” is critical in the pricing of all assets and although a very nuanced and complicated ratio, in the main, when there is more product available than there are buyers, (or buyers able to proceed), then prices go into decline.
Many things can effect both sentiment and “Supply and Demand,” but as an asset acquisitions expert for 30 years, I can assure everyone reading this that I have never seen such a storm of negative drivers on prices forming on the horizon, (those that WILL effect sentiment and “Supply and Demand”), including but not restricted to;
• Inevitable increases in business failures.
• Rising levels of unemployment.
• No fiscal stimulus available to the government; everything was thrown at the financial crisis.
• Evolving consumer behaviour.
• Changing and unknown levels of demand.
• Reducing mortgage and debt markets.
• The asset market contagion that is “FEAR!”
And FEAR is a contagion in all asset markets because it effects sentiment and reduces further again the number of buyers, thus further driving “Supply and Demand” to favour buyers and to drive down prices. So I predict that everyone looking to sell properties will have some challenges to face, although the profile of the property will dictate the severity of the challenges to be faced, because the profile will be inextricably linked to the demand for certain properties; and demand will set pricing.
So what is this likely to mean for landlords and property investors looking to sell their investment properties, and residential buyers looking to sell their home? Well if you have to sell it is likely to be a chastening experience, one of chasing buyers, and in a market where you are doing the same as everyone else, therefore the ability to sell can only be driven by price.
In truth for those with large amounts of equity in their property and/or those not needing to sell, the only option could be to ride out the storm, as many did during the 12 years that followed the financial crisis. But for those having to sell? Well it will effect landlords and property investors, and residential property owners in different ways, but in brevity;
Landlords and Property Investors.
The problem for the majority of landlords looking to sell investment properties, (especially those with one or a few investment properties), most of whom may not have tried to sell an investment property in the past, is that the residential selling process and the buyers associated with this market, (i.e. the buyers likely to pay the most money), are not available to you. The reasons for which were expanded upon in my previous article; The Majority Of Estate Agents Can’t Help Landlords,which you will find below in my feed. So in reality most will only have the option of selling to another investor and not many investors are buying at the moment.
Most of you will also make the mistake of presenting a property to the market for sale in a tired condition and with tenants in situ. In the majority of cases, if the property was performing well, (in terms of the returns), you probably wouldn’t be selling so any investors will be aware that what you are selling is unlikely to be a genuine “Turn Key Investment!”
Residential Sellers.
Unfortunately the vast majority of chains that you will be involved in will include a first time buyer and this is likely to be where the problems start. Regardless of the price you are offered for your property, if there is a first time buyer in the chain, the chain is likely to collapse; why? Firstly the mortgage market has changed since the lock down and 95% mortgages are now almost impossible to secure; most lenders are now wanting a 15% deposit which represents 3 times the deposit required prior to the lockdown, and very few first time buyers are entering the market this well-funded!
Even if you find a first time buyer with this sizeable deposit you will then have the RICS surveyor for the mortgage company more than likely value down the property, to allow for the 15% average likely reduction in house prices predicted by the Bank of England and a host of financial analysts, further complicating the chain and completion.
In reality most properties involving a first time buyer will probably need investors to buy these properties, in order for chains to complete, those with access to commercial funding structures and arrangements. Unfortunately investors will only be purchasing properties that make money, so the prices offered are unlikely to be close to what the estate agent wanting the instruction indicated; this will leave all those involved with these properties with a difficult decision to make, assuming they can still afford to move on, after these reductions in pricing.
Solution.
For those needing to sell their property quickly luckily there is another way; private landlords, property investors and residential property owners looking for advice on, or immediate sales and exit strategies from their current investment property or residential properties have someone to call; someone looking to acquire properties for themselves and who can provide the solutions provided to meet your financial return, taxation and property disposal aims.
I am not an estate agent, (whose services model can't help private landlords, property investors or residential property owners needing to sell quickly or in challenging circumstances), I am a property investment and management professional specialising in the management of property assets and the highly specialised disposal and sales solutions required by private landlords, property investors and some residential property owners, including;
1. Immediate commitments to purchase.
2. Access to investors looking to acquire property; the serious property professionals and those who don't look to purchase via traditional estate agents.
3. Guaranteed rental and property management agreements for up to 5 years; providing guaranteed returns and complete piece of mind.
4. The creative strategies required to meet the disposal and sales ambitions of landlords, property investors and residential property owners, in this challenging and likely soon to be falling property market.
I offer property solutions consultations that are free to landlords, property investors or residential property owners needing to sell their property immediately and/or who need to build a creative investment or disposal solution to meet their immediate property investment requirements in both a profitable and tax efficient manner.
To arrange a no obligation exploratory consultation call to explore how I can assist landlords, property investors and residential property owners to sell and exit from their investment and/or existing properties in a financially sound and tax efficient manner, please do not hesitate to contact me directly via email at andrewb@abps@gmail.com, my Facebook Page or via LinkedIn, (if we are 1st Connections), or via a connection request worded as follows; “I Would Like To Know More About Your Services For Residential Home Owners, Landlords And Property Investors!” if we are not already 1st Connections.
I look forward to hearing from you.
Andrew Banning.