Podcast Summary
Northern Cities Outpace Southern Cities in Property Growth: Savvy investors have capitalized on the North's significant property growth, with cities like Liverpool seeing 5.7% annual house price growth and a 19% increase in transactions since 2015, while sales in southern England have decreased by 13% since 2015. The main driver is the market reacting to the undervaluation of property in the North.
The property market in the northern cities of the UK has seen significant growth in recent years, outpacing the historically expensive southern cities. This trend, driven by the long-term undervaluation of property in the North, has been predicted and capitalized on by savvy investors. The report from Home Track shows that cities like Liverpool have seen annual house price growth of 5.7% and a 19% increase in transactions since 2015. Conversely, sales in southern England have decreased by 13% since 2015. While there are various factors contributing to this shift, including stamp duty and Brexit, the main driver is the market reacting to the undervaluation of property in the North. Economists may predict continued growth, but following the flow of money and recognizing value in undervalued areas is a simple yet effective strategy for investors. If you're interested in learning more about property investment and meeting like-minded individuals, consider attending a Property Hub meetup in your area. For more resources and information, visit propertyhub.net/meetups.
Learning from Members' Property Journeys: The Property Hub community inspires and educates through real-life member experiences, encouraging action and progress in property investment.
The Property Hub community is committed to providing valuable educational content, both through their podcast and now through their YouTube channel. The community aims to release a video every week, and they're inspired by the real-world experiences and progress of their members. Sarah, a Property Hub member, is a great example of this. She started with two buy-to-lets and last year, began a flipping company in Sheffield. Sarah's first project was a 2-bed flat and a purpose-built apartment that required a complete modernization. After selling that property quickly, she moved on to a bigger project - a 2-bed semi-detached property in a nice area, which she transformed by adding a conservatory and punching into the loft to add a third bedroom. This project is taking longer than her first one, but she's making great progress. The Property Hub team encourages their audience to learn from members' experiences, combine that knowledge with action, and realize that they too can make progress in their property journey. So, if you're interested in property investment and education, make sure to subscribe to the Property Hub YouTube channel and follow their podcast for valuable insights and inspiration.
Managing a project remotely with a trusted partner: Effectively managing a project from a distance requires clear communication, trust, and prior experience with your partner.
Sarah's successful partnership with Simon in a joint venture has allowed her to effectively manage a project from a distance while still maintaining control and trust. During their previous collaboration, Simon was Sarah's project manager. However, they later decided to form a joint venture for a new project, with Sarah handling the financing and larger purchases while Simon served as the builder and main contractor. Their working relationship has been strong, with Sarah trusting Simon's expertise and skills. Although she doesn't need to be physically present as much as before, she still checks in regularly and relies on clear communication and daily updates. This arrangement has saved Sarah time and energy, as well as proven to be an effective way to manage a project remotely. However, it's important to note that partnerships for joint ventures should not be entered into lightly, and prior experience and trust between partners are crucial.
Partnering with a project manager and using online tools for remote property investment: Effective communication, research, and relationship-building enable successful remote property investment through partnerships, online tools, and informed decisions.
Effective communication and preparation are key to successfully investing in property remotely. Sarah, a successful property investor, shares her experience of partnering with a project manager and utilizing online tools to streamline her process. By doing her research and narrowing down potential deals before visiting, Sarah maximizes her time and efficiency. Additionally, she values the importance of building strong relationships with estate agents, turning them into valuable resources rather than obstacles. Overall, Sarah's focused approach and use of technology enable her to make informed decisions and find the best deals, even when not physically present at the location.
Offering a Lowball Price with Reasons: Providing a well-reasoned, lowball offer to a real estate agent can increase chances of acceptance and build a better relationship.
Providing a well-reasoned, lowball offer to a real estate agent, rather than making a lazy, unjustified offer, can increase the chances of the offer being accepted and help build a better relationship with the agent. Sarah's approach involves giving the agent a list of reasons for the low offer and allowing the vendor to respond, potentially leading to a successful deal. This strategy contrasts with throwing out numerous unjustified offers, which may work but can also strain relationships with agents. Additionally, Ian has been busy with successful property developments and plans to expand his portfolio by focusing on lower-cost studio flats, marking his first venture into leasehold properties.
Shifting focus to smaller-scale studio developments: Investing in smaller-scale studio developments offers lower capital requirements, higher yields, and faster cash flow generation compared to larger properties.
Property investor Ian is shifting his strategy to focus on smaller-scale studio developments due to the lower capital requirements and higher yields compared to larger properties. With a rental income of £600 per month and an initial investment of only £25, the studio provides a much more attractive return on investment compared to a 3-bed house with a rental income of £13,100 per month and a required deposit of £80-90,000. Ian's goal is to generate enough cash flow to support the partnership within the next three years, after which they may consider more long-term investments. Despite the challenges in the southeast market, Ian is determined to make it work and is also considering expanding into the northern market for potentially higher yields. This case highlights the importance of adapting one's investment strategy to achieve specific financial goals and maximize returns.
Understanding Your Strengths and Market Knowledge: Successful property investing requires recognizing your strengths, market knowledge, and valuing your time. Staying in your familiar market can offer advantages, while expanding to a new one requires careful consideration.
Successful property investing involves understanding your strengths, market knowledge, and valuing your time. Ian, with his strong network and ability to make connections, recognizes the advantages of staying in his familiar market rather than expanding to a new one where he would have to start from scratch. Steve, on the other hand, has built a solid foundation with his simple buy-to-lets, but acknowledges the importance of being adventurous while also being realistic about his commitments. Both investors prioritize their expertise and time, emphasizing the importance of knowing what works best for you in the property market.
Success in property investment requires research, patience, and a long-term perspective: Through consistent effort, patience, and strategic planning, one can build a successful property investment portfolio over time
Building a successful property investment portfolio requires thorough research, patience, and a long-term perspective. Steve, who has been buying HMOs in North Kent, is a great example of this. He has conducted extensive research, built a network, and has not rushed into investments, realizing that now may not be the best time. His careful approach has paid off, providing him with a solid portfolio and passive income. Moreover, the flexibility to choose when to make property investment a full-time venture adds to the appeal. The key lesson is that consistent effort, coupled with patience and strategic planning, can lead to significant progress over time.
Principles of successful property investment: focus, research, and action: Successful property investors have clear goals, stay focused, do thorough research, and take action to achieve results.
Successful property investors have a clear goal and strategy, stay focused, and do thorough research before taking action. Each investor's journey is unique, and what works for one might not work for another. Some may need to adjust their strategies along the way, while others may find that the grass isn't greener on the other side. Regardless, the fundamental principles of successful property investment remain the same: focus, research, and action. These principles, when executed consistently, will lead to results. Another common theme among the investors featured is the importance of taking action. While education and research are crucial, they are only valuable when applied to real-life deals. Lastly, The Journey podcast reached a significant milestone by becoming the first business podcast in the UK to pass 1,000 reviews. This achievement is a testament to the value and impact the podcast has had on its listeners.
Focus on one goal to increase chances of success: Identify top priority and put all energy into making it a reality, rather than spreading resources thin on multiple goals
Focusing on one goal rather than trying to achieve multiple things at once can increase the chances of success. The quote "you can have anything you want, but not everything you want" emphasizes the importance of prioritizing and narrowing down your goals. It's easy to get distracted by a long list of desires, but the key is to identify what truly matters and create a plan to achieve it. By focusing on one thing, you can put all your energy and resources into making it a reality. So, whether it's related to personal or professional growth, make sure to identify your top priority and go after it with determination. Remember, it's better to accomplish one goal than to fall short of several.
