New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About 2 weeks ago 95
Where property people often go wrong is they focus on the strategy first: R2R, deal packaging, SA, HMO, lease options etc.
Too often I hear people say “I’m going to focus on serviced accommodation” or “Rent 2 Rent”
I recently presented why you should focus on the market 1st!
What’s going on in your market? Who’s selling, who’s buying? Why are they buying? How are they buying? Where are they buying? What segment is you market dominated by market? Why could this change? What legislation has been introduced, what effect will this have on the next 12-36 months? What legislation could come in? Who’s renting? Why are they renting? How much are they paying? What’s being built for that market? What part of the micro market in in growth? What part isn’t catered for? Etc etc etc
There are many more.
Focusing on the market, and some/most/all of the above enables you to identify what/when/where to buy with a clear view on who/when/how you can exit.
Focusing on the ‘market’ allows you to plan for the long term, and maximise the opportunity in the short term.
Focusing on what you can control, and using what you can’t, to shift your direction/offering keeps you ahead.
Too often people confuse what they are buying, how much they are buying and how much they are spending with success.
Success is the end result! The result when the tenant is in paying the rent which exceeded your forecast. Success is selling above expectation time and time again.
Ever herd the saying “turnover is vanity, profit is sanity and cash is king?”
Money being spent and “I’ve bought xyz” is vanity!
What’s King, is the results! The cash at the end!
Add this into the focus on strategy instead of the market and you could have a problem.
At our networking event, many people who have paid to go onto a course talk to me about “only focusing on R2R!” Or “I’m going to do SA!”
The truth is, most don’t consider this.
As many of you know we’ve played, shifted and flexed within the student market for years and I am still learning.
We’ve started to move into developing properties, in specific locations which allows us to sell to a supported market. These locations allow us to also shift if an “uncontrollable” happens. Our location allows us to play to multiple markets for both selling and renting.
The market and understanding of the market mitigates a level of risk.
The strategy or ‘tool’ comes next.
Learning how to use each tool, means when the right opportunity comes up in the right market, you are able to move forward with a greater chance of SUCCESS!
The budget didn’t really give too much for property world and what it will do still isn’t a 100% clear.
However, the instant impact was of course the removal of stamp duty to First Time Buyers for properties under £300k
The first thing I did this morning was contact our designer for our new build boards, to put this onto the marketing.
First Time Buyers, with Help to Buy already have a relatively low cost to purchase and the stamp duty has made it that little bit more accessible.
Know your market and what can impact it for the good and the bad.
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