Podcast Summary
Applying for a Job as a Portfolio Manager at RMP: Listeners can apply for a job as a portfolio manager at RMP, building relationships with investors, setting goals, and helping them build a property portfolio. Visit rmpproperty.com/applyhere to apply.
The Property Podcast, hosts Rob B and Rob D, discussed the process of buying a House of Multiple Occupancy (HMO) and announced an opportunity for podcast listeners to apply for a job as a portfolio manager at RMP. Rob revealed that the role involves building long-term relationships with investors, setting clear goals, and helping them build a portfolio. To apply, listeners are encouraged to visit rmpproperty.com/applyhere and fill out a brief form. The hosts also mentioned their previous podcast episode about recruitment and emphasized RMP's focus on hiring amazing people. Additionally, they shared a news story about the Bank of England's Quantitative Easing (QE) and its potential impact on the property market. Overall, the episode offered valuable information on HMO investing and a unique job opportunity.
UK's net worth increases but much of it is tied up in housing: Despite UK's net worth increasing to £8.8 trillion, most of it is in housing and not benefiting the economy or individuals in a practical way
While the UK's net worth has significantly increased over the past few decades, much of this wealth is tied up in housing and isn't doing much to benefit the economy or individuals in a practical way. The Office for National Statistics (ONS) reports that the UK's net worth is currently £8.8 trillion, four times what it was in 1995. However, a large portion of this wealth is in the form of housing, which has seen rapid price increases over the years. This hidden wealth isn't doing much to stimulate the economy or help reduce personal or government debt. Last week, we discussed the concept of measuring what truly matters, and this news story from The Guardian further emphasizes that point. While it may seem like good news that the country's net worth is increasing, it's important to remember that this wealth isn't necessarily being used in a productive way. If you're interested in learning more about this topic, consider attending a Property Hub Meetup Night, which are free and offer valuable insights into the property industry. Additionally, be sure to listen to last week's episode on quantitative easing for a deeper understanding of this issue.
Location is key when buying an HMO: When buying an HMO, consider the specific needs of your target tenant demographic to ensure the location is suitable. Utilize resources like spareroom.co.uk and council-supplied lists to determine demand and avoid compromising on location.
When considering buying a House of Multiple Occupancy (HMO), the location is crucial. HMOs, which are properties rented out by the room, have become increasingly popular due to their potential for higher yields. However, the process of buying an HMO involves additional considerations compared to a single let property. Rob and his team discussed the importance of knowing your market, as different types of tenants require different locations. For students, being near a university is essential, while professionals need access to transport links. The benefits market often gravitates towards town centers due to their walkability. The team recommended using resources like spareroom.co.uk and council-supplied lists of licensed HMOs to determine the demand in a specific area. A word of caution was given against pushing the location too far in pursuit of lower costs. If the location isn't right, filling the property with tenants can be challenging, potentially resulting in a worse investment outcome. The team emphasized that location cannot be compromised when buying an HMO.
Considering HMOs? Be cautious about location: Location plays a crucial role in HMO investment success. Research potential areas, financing options, and local regulations to minimize risks and maximize returns.
Investing in HMOs (Houses in Multiple Occupation) requires careful consideration, especially regarding location. If you cannot keep the property rented and end up with empty rooms, the expense and hassle may result in a yield that's the same or lower than a single let. Additionally, areas with too many HMOs or those subject to Article 4 restrictions, which limit the conversion of single lets to HMOs, can pose challenges. These areas often have high student populations and can significantly change a local community. Before investing, research the location and potential financing options, such as specialist commercial lenders like Shawbrook and Aldimore. Remember, a simple Google search could save you from costly mistakes.
Understanding HMO Mortgages: Lenders have unique criteria for HMO mortgages, requiring experience and advice from a broker to secure the best options based on property type, personal situation, and available rates. First-time landlords may have additional requirements. HMO value depends on income and bricks and mortar, and specific licensing requirements can vary by council.
Financing an HMO property comes with additional considerations compared to a single let. Lenders have unique criteria for HMO mortgages, and a good broker can help narrow down the options based on the type of HMO, personal situation, and available rates. For first-time landlords, having experience managing an HMO may be a requirement. The value of an HMO for mortgage purposes can depend on both income and bricks and mortar value. Additionally, HMOs often require licensing with specific conditions, and the requirements can vary by council. It's crucial to seek advice early in the process to avoid complications and delays in securing the right mortgage for your HMO property. For more in-depth information, listen to the HMO Mortgages podcast on Property Geek or visit the Property Hub for additional resources.
Understanding the Costs and Requirements of Running an HMO: Running an HMO involves significant upfront and ongoing costs, including licensing fees, mortgage payments, management fees, letting fees, monthly bills, additional bills, maintenance costs, and void costs. Proper planning and budgeting are crucial for a successful and profitable venture.
Running an HMO (House of Multiple Occupancy) involves numerous licensing requirements and significant ongoing costs, but it can also provide a decent return on investment. To get started with an HMO, you need to understand the local licensing regulations by contacting your local authority. Requirements often include fire safety measures, displaying necessary information, and having a designated property manager. These costs should be accounted for as they can add up. Some of the ongoing costs include mortgage payments, higher than a single let due to the property type and terms; management fees, which can be 12-17% or more unless you manage it yourself; letting fees, which can range from £100 to 2.50 per room let; monthly bills, estimated at £20 per room; additional bills for utilities, Sky, and cleaning; maintenance costs, which should be at least 5% of the rent; and void costs, also 5% of the rent. Despite these costs, there is potential for a return on investment. However, it's important to note that ROI can be tricky to calculate due to varying costs and time investments. Based on calculations and experience, a maximum ROI of 16% can be achieved. In summary, HMOs offer potential returns but come with numerous requirements and costs. Proper research, planning, and budgeting are essential to ensure a successful and profitable venture.
Maximizing Returns with HMOs: Location and Price Matter: Buying an HMO at a low price, maximizing bedrooms, and effective management can lead to higher returns compared to a single let. Research and location are key factors in success.
Buying an HMO (House of Multiple Occupancy) can offer higher returns than a single let, but it's crucial to consider all costs and be realistic about expectations. The key to maximizing returns is buying at a low price, fitting in as many bedrooms as possible without sacrificing quality, and setting it up to maximize rent and occupancy. Research is essential, as the location and purchase price are non-negotiable factors. The right management is also vital, but the most significant profit comes from buying in the right place at the right price. The upcoming magazine issue will delve deeper into HMOs, providing case studies and expert advice.
Appreciating Listeners and Introducing a Useful Resource: Listeners' reviews inspire the hosts and they shared a heartfelt appreciation for their supporters. They introduced mysms.com, an app that lets users send/receive texts on laptops/tablets, making it easier to manage messages and minimize distractions.
The hosts of the Property Hub podcast encourage their listeners to subscribe to their magazine and leave positive reviews. They shared a heartfelt appreciation for their supporters, including a young listener named Joshua who left a glowing review after finding inspiration from the podcast to start investing in property. The hosts also introduced a simple resource of the week: an app called mysms.com, which allows users to send and receive texts on their laptops or tablets, making it easier and faster to respond to messages. The hosts emphasized the importance of minimizing distractions while working, and the use of mysms.com can help achieve that by consolidating messages into one place. The hosts' passion for their podcast and their commitment to providing valuable information to their audience was evident throughout the episode.
Considering turning off notifications for focus: Speakers prioritize focus over constant notifications, upcoming episode on UK property affordability, join next week for informative discussion, find show notes on Property Hub website.
The speakers on The Property Podcast are considering turning off notifications to minimize distractions and focus on their work. They believe that occasionally missing out on messages is better than being constantly distracted. The upcoming episode of the podcast will focus on the affordability of UK property, aiming to provide factual information to help listeners form their own opinions. They encourage listeners to join them next week for this geeky but informative episode. In the meantime, listeners can find show notes and information about meetups on the Property Hub website. Overall, the speakers value their listeners' time and aim to provide factual information to help them make informed decisions about property.
