Covid-19 & The Present Opportunity

May 12, 2020

So is the pandemic effecting property? It would be wrong to say that the pandemic has had no effect on the property market as it's evident every single sector has been hit no matter how big or small. However one key thing that remains strong in a pandemic is that people need food and shelter. 

Many portfolio landlords are now more than ever realising the strong income generated from rental property as between 80% - 85% of their rental income is still being received in a time when the majority of the UK is experiencing a substantial cut in their monthly income. 

 

 

We have been watching many webinars and the key theme seems to be many people hoped to have planned better for the pandemic. Yet so many of us are still just 1 paycheck away from disaster.

With the Serviced Accommodation market hit the hardest a diverse portfolio and a mixture of Buy To lets, HMO's & developments is key to surviving any recession or pandemic as all will be effected in their own way.

 

 

 

Landlords Looking to Sell?

With rundown Buy to lets or landlords fed up with Section 24, Brexit or Rental Voids.

This will lead to a over supply of houses which results in a slight decrease in prices achieved - "Savills Group" have forecasted a dip of circa 5% but with a growth of 15% over the following 5 years
Anyone in the market for the long term will achieve a great return.

Our take is "a simple refurb projects will be difficult during these times as the returns are too low and margins too small" 
.
We are standing firm that larger projects with bigger margins can still work.  
See below a deal closed just last week for a long term Investor from a landlord eager to sell. 

4 bed HMO (Article 4) 
PP: £180,000
Refurb: £90,000
Fee's & Stamp: £9,000
GDV: £420,000
Income Per Annum from rent: £40,000 (Once converted to 6 bed)
.

Interested in knowing how to obtain a great Article 4 HMO deal for 6 Beds around £220k revalued at £420k plus needing refurb drop us a message.

 

 

 

 

 

 

 

 

 

 

 

 

 

Renters looking for cheaper shared Accommodations
With renters looking to have bills included in their rent HMO remains a great opportunity to get into.
.
Here are a few current Article 4 HMO's sold on the open market across The Midlands pre Covid-19.  With hMO destined for the strategy to be stable post a recession due to the yield based income and valuation
.
Montpelier Road, Nottingham - £430,000
Dunkirk, Nottingham - £420,000
Arnesby Road, Nottingham - £450,000
Loughborough £400,000

Interested in knowing how to obtain a great Article 4 HMO deal for 6 Beds at circa £200k needing refurb drop us a message.

 

 

Future Recession Preparation

Science has shown us every 10 years there is a major worldwide pandemic that happens
.
How will we prepare for the next one that arises?

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