I'm still happy buying vanilla to be honest. I don't mind making tiny profit/break even from it. I'll not regret cheap stock now when the rent hikes are huge right now. If you have the funds to cover the shortfall. It's worth it.
You are struggling to break even with regular residential atm if you only have 25% equity in the property. You need a 6% yield atleast just to break even as you need to budget atleast 25% of your rent for running costs. Once I got my flat refurbished I’m having a go at serviced accommodation for contractors see if it works.
Very slick presentation thank you. I manage HMOs as an agent; they certainly are a lot of legwork. One aspect that gets overlooked is the upkeep on wear and tear in the communal areas. In a single let you have a clear period to redecorate between tenancies if you chose to, with the potential of some of this being paid for by the deposit if justified. In my HMOs I have had people coming in and out of various bedrooms for 10 years plus. Their inventories are only for their bedrooms as I wouldn't be able to prove who did what in the communal spaces, and they obviously get a lot of use..
Forgive me if I misunderstood, but isn't flipping and renovating the same thing? You said with flipping it's difficult to see a profit but renovating is still profitable. Perhaps you meant renovating in order to rent, or maybe flipping means adding a lick of paint and new flooring. Would you be kind enough to clarify the difference?
Nice video Rob very informative. I have been listening all your podcasts and have not missed one yet. Over the years there seems to be a trend, I purchased your books and find all your work interesting. My 7 year old just started playing the the Monopoly card and board games and I can’t wait to get him into the real life thing. It’s definitely “life changing”; one investment idea, I would think a top trump property card game (a property in Manchester, a property in London, Newcastle, Leeds etc…) would be a cool idea and I think you guys could pull something like that off, or what do you think? 😂 I would certainly by it! Keep up the good work, Merry Christmas and a Happy New Year to all of you at Property Hub!
That actually sounds really fun, and I'd much prefer playing that with my son than the Marvel superheroes version for the millionth time! I don't see us doing it, but if you do I'd be a buyer :)
I believe there are purpose-built blocks being quietly sold off-market because the economics don't work as they once did. But I don't know enough to have a firm opinion
1:53 There is one know trainer keeps banging on about these Lease Options. I've been doing this for a while and never met anyone up for a lease option. Allows the owner to move on? How? Unless they have spare cash to not need the money to move on. Most people these days would be wise to the fact if it went up £50k or more after 7 years, they could pull out. Arrrrggggg!!!
Yeah theoretically possible and generates the odd case study to sell courses on the back of. In practice though, it seems to me most people would do better to dedicate the same amount of time to another method of generating the capital needed to invest in property the "boring" way
Are students finding it easy to find accommodation in your area? I know of investors who are renting out mould and mice infested flats to students who can't find a better alternative?
In the few areas I have direct knowledge of, student living conditions are high - but like everything it'll vary by location and even within a location there will be exceptions
I'm buying a block of flats to let out now. Your video has reassured me that I am doing the right thing. Thank you
I'm still happy buying vanilla to be honest. I don't mind making tiny profit/break even from it. I'll not regret cheap stock now when the rent hikes are huge right now. If you have the funds to cover the shortfall. It's worth it.
Same - if mortgage rates are close to a peak and rents keep increasing (which both seem likely), your numbers will improve every year
You are struggling to break even with regular residential atm if you only have 25% equity in the property. You need a 6% yield atleast just to break even as you need to budget atleast 25% of your rent for running costs.
Once I got my flat refurbished I’m having a go at serviced accommodation for contractors see if it works.
Correct - lots of deals that did stack don't anymore, but rising rents are helping to push the yield up. Good luck with your serviced accommodation!
Nice to see Rob is doing his best to reply to comments 🎉
Hey rob thanks for the video I’ve just sold my first lease option deal so I really would disagree that it’s not working in 2024!!
Very slick presentation thank you. I manage HMOs as an agent; they certainly are a lot of legwork. One aspect that gets overlooked is the upkeep on wear and tear in the communal areas. In a single let you have a clear period to redecorate between tenancies if you chose to, with the potential of some of this being paid for by the deposit if justified. In my HMOs I have had people coming in and out of various bedrooms for 10 years plus. Their inventories are only for their bedrooms as I wouldn't be able to prove who did what in the communal spaces, and they obviously get a lot of use..
Forgive me if I misunderstood, but isn't flipping and renovating the same thing? You said with flipping it's difficult to see a profit but renovating is still profitable. Perhaps you meant renovating in order to rent, or maybe flipping means adding a lick of paint and new flooring. Would you be kind enough to clarify the difference?
Hey Rob, still think studio flats are a worthwhile investment, given they generate a higher yield?? Great vid btw!
Nice video Rob very informative. I have been listening all your podcasts and have not missed one yet. Over the years there seems to be a trend, I purchased your books and find all your work interesting. My 7 year old just started playing the the Monopoly card and board games and I can’t wait to get him into the real life thing. It’s definitely “life changing”; one investment idea, I would think a top trump property card game (a property in Manchester, a property in London, Newcastle, Leeds etc…) would be a cool idea and I think you guys could pull something like that off, or what do you think? 😂 I would certainly by it! Keep up the good work, Merry Christmas and a Happy New Year to all of you at Property Hub!
That actually sounds really fun, and I'd much prefer playing that with my son than the Marvel superheroes version for the millionth time!
I don't see us doing it, but if you do I'd be a buyer :)
Don’t you think the purpose built student accommodation with comparative high rents are struggling due to economic tightening across the uk 🇬🇧?
I believe there are purpose-built blocks being quietly sold off-market because the economics don't work as they once did. But I don't know enough to have a firm opinion
1:53 There is one know trainer keeps banging on about these Lease Options. I've been doing this for a while and never met anyone up for a lease option. Allows the owner to move on? How? Unless they have spare cash to not need the money to move on. Most people these days would be wise to the fact if it went up £50k or more after 7 years, they could pull out. Arrrrggggg!!!
Yeah theoretically possible and generates the odd case study to sell courses on the back of. In practice though, it seems to me most people would do better to dedicate the same amount of time to another method of generating the capital needed to invest in property the "boring" way
Buying land cheap and getting planning will work.
Yep if you can pull it off, for sure
Are students finding it easy to find accommodation in your area? I know of investors who are renting out mould and mice infested flats to students who can't find a better alternative?
In the few areas I have direct knowledge of, student living conditions are high - but like everything it'll vary by location and even within a location there will be exceptions
Damn