This week on Ask Rob & Rob, Mike...
Asks Rob & Rob – Should I never sell a property?
This week we're lucky enough to be joined by Pete Matthew from the Meaningful Money podcast, who talks us through how to set up your personal finances for property investment.
Having Pete on the show allowed us to cover some topics that we've not devoted enough attention to in the past, including:
If you need more Pete in your life – and frankly, who doesn't – make sure you're subscribed to Meaningful Money
Thank you to Matt Chan for pointing us towards Mubert – a site that generates sounds designed to help you concentrate.
We've covered similar in the past, but it's always worth checking out another – and if you're going to be looking into insurance policies and bank account comparison tables, you'll need all the help you can get...
The northern powerhouse powers on – as Theresa May confirms that it's not going to be scrapped along with the chancellor who coined it!
Buzzword or not, investing and looking at policy to rebalance the economy geographically makes nothing but sense – and is good news for anyone with investments anywhere near the areas that are set to benefit.
The first Thursday of the month is almost upon us, which can only mean one thing: MEETUPS!
Again there are more than 30 across the country – and if you're in London, you can attend the launch of our brand new Waterloo meetup.
View the full list and book your place here
What other steps have you taken to secure your personal finances?
Any other questions you'd like Pete to answer for us?
We’d love to know, so join the discussion in The Property Hub!
Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air.
If you’d like to hear your name on the show, leave us a review on iTunes here.
Not sure how to leave a review? This video shows you how to review and subscribe on iTunes.
This week on Ask Rob & Rob, Mike...
Asks Rob & Rob – When it comes to refinancing, should I consider a longer term deal to avoid fees?
Rob D & B agree that this is all about the numbers, but it can be tricky to work out. Get your mortgage advisor to do the calculations and work out what is best for you. Remortgaging can be an expensive business and even if the costs are not being paid out immediately, they are definitely still very real costs.
Rob D asks his broker to give him all the figures including any associated fees, just to be 100% sure that he chooses the best deal when re-financing.
Last week we talked about the whole property buying process, all the way up to completion. This week, we're looking at the easy-to-overlook steps you need to take in order to prepare your property to let.
They include:
Then it's time to either start marketing yourself, or hand it over to an agent. We've got you covered there too...
This week on Ask Rob & Rob, Andy...
Asks Rob & Rob – What checks should you make when buying remotely?
This is somewhat of a specialist subject for The Robs, as they both invest this way, and run companies which help people to invest with a completely hands-off method.
This is an important question and Rob B starts by saying you need to be very clear in what you want from the people you work with. Give them really clear guidelines so people know exactly what is an investment you would consider, and what you wouldn't touch in a million years. This will help preserve your working relationships and save you all a lot of time and avoid frustration. Give as much detail as possible.
Rob D agrees with the advice given but also says to clarify all information given - even if it's coming from a trusted partner. Get images, check market information, and do your research. This will give you complete clarity on your investment, and you wont feel like you really need to be there on the ground. This method is not for everyone, but for us it works really well.
Getting an offer accepted on a property is always a great moment – but this week we see that rather than being the finish line, it's actually just the firing of the starter's pistol.
The process of doing the legals and getting your mortgage arranged can be a lengthy and arduous one, and it's your job to take control of all the people involved and keep things ticking along. In this episode we go step-by-step through everything you'll encounter, and provide tips for how to boost your chances of coming through unscathed.
We discuss:
And in case it's all a bit much to take in, we've got a resource of the week to help...
Rob B issues a note of caution - beware those who tell you there is a way to do this that means you pay a little more now to get started as an investor. The truth is there is no real shortcut, and you probably should pay your debts off first. It's frustrating, and tempting to want to find a quicker alternative, but not the best move. Avoid the people making the big claims and the courses that say otherwise are a waste of money.
If it's a choice of paying off your debts or investing, you need to make a decision based entirely around return. So if your debt costs you 9% a month and you can comfortably pay this, but you can get a property that gives you an 8% return, then it's a no-brainer - pay off your debt. But start by paying down your most expensive debt first, get that paid off as soon as you can, and then maybe you will reach a point where you have some cheaper debt which you can accept whilst investing.
Rob D admits yes, it's not the fun approach but waiting is the right thing to do, but suggests you make a plan now. Work out when you are going to be ready to invest and use that time to get experience and learn, so that when you're financially ready, you are as educated as possible.
So don't feel disappointed that you can't start now, get a plan together and get excited about what you will be able to do in the future.
It's no surprise that we're big believers in the long-term power of property...but we were surprised when the Bank of England's Chief Economist said he'd back property over a pension too.
So in this week's episode we ask if property is really better than a pension. We cover:
It's far from being a whitewash – so take a listen, and see what you think.
This is a commonly asked question - basically 'how good is good enough'. The answer is different for everyone as Rob D points out, as everyone has a different approach and attitude to risk. Rob D does say that neither himself nor Rob B uses net yield as a measure, preferring to favour looking at ROI, this takes into account using a mortgage and tells us after factoring in that mortgage, how hard an investment is working. Rob D bases everything on ROI, occasionally looking at gross yield to compare different properties that have similar costs. Rob D (greedily) aims to get an ROI of 10% and in typical Rob D fashion, hasn't invested in a property that doesn't hit this measure, though definitely doesn't rule this out if the deal had the potential to make great capital growth or add value.
Rob B has relaxed his approach slightly in recent time, having formally worked with a target of 10% as well. He will now accept 8% BUT only if this property needs zero work and is being handed over to Yellow Lettings to get let. That said, he has done deals in excess of 14%, and deals at less than 6% because whilst he does check out this measure, he wont necessarily be put off entirely if the ROI isn't so high IF the deal is right in terms of capital growth.
Rob B adds a note of caution to remind us that ROI isn't all it's sometimes cracked up to be! If it is based on letting at the maximum market value, getting a great deal from your solicitor and the very best mortgage rate in the market then these things may well not happen!
Finally, Rob D suggests you don't compare ROI with other investors too frequently as you don't know what another person has allowed in the way of rent void periods, maintenance costs etc. So don't get too hung up comparing your figures against someone else's, just know that you are happy with them personally.
Depending on who you listen to, it's either the perfect time to invest in property or it's horrendously overvalued and ripe for a crash.
This week, we look at the data behind the claims that UK property is unaffordable – and show how easy it is to cherry-pick one measure to support an agenda. We look at affordability through the lens of:
There are some fascinating stats – as well as some really important insights into how affordability varies across regions, and where value might be found.
This week on Ask Rob & Rob, Charles...
Asks Rob & Rob – What is the snowball effect?
Rob B says that from a capital growth point of view, if you see your portfolio at the top of the hill, as the hill drops down that represents time, by the time your snowball has been pushed down the hill - it is bigger. The point being, if you do more work in the early stages (buying BMV), your 'snowball' will be bigger at the end. The first few properties are incredibly important and you need to make wise decisions.
Rob D adds that when he thinks about the snowball effect, he thinks of compounding rent. For example, if you want to buy a property every year worth around 80K, with a 75% mortgage and cash for the rest, you would need to save 20k+ (with fees) to buy that property which for most people is a very big ask. But once you have your first property and it's making you money, if you don't touch that rent, you need to save less to put the deposit down on your next property - and if you keep doing that, you reach a stage where you can keep buying through rental income alone. Saving for the first two or three properties is sometimes a slog, but it doesn't take too long for your 'snowball' to take effect and make life a lot easier.
ASK YOUR OWN QUESTION TO ROB & ROB!
Don't be shy! All you need to do is leave a message with your name and whatever's on your mind.
Just pick up the phone and call 013 808 00035 (normal UK call rates apply).
Or if you prefer, click here to leave a recording via your computer instead.
The Property Hub Summit is the place to get all your questions personally answered by Rob & Rob, and build a network of other smart, motivated investors.
Over the course of a full day at a swanky hotel we'll help you set your goals, form a plan to get you there, overcome your obstacles, and give you the support system you need to make sure nothing gets in your way.
Just don't hang around - there are only four Summits each year, and just 16 places available at each!
Interested? Click here to find out more.
More than any other type of property investment, the success of an HMO hinges on buying and setting it up right in the first place. We've talked recently about managing an HMO once it's up and running, but this week it's all about acquisition. We discuss:
Rob B starts by reminding you that what may be right for one person, won't necessarily be right for another. There will be pros and cons to each approach and there's no absolutely 'right' answer for everyone. However, whilst there is definitely an advantage in being a 'local expert' it is unlikely that your local area will consistently be a smart place to invest, which is why Rob & Rob invest all over the UK in places they consider to have good fundamentals. Rob allocates a lot of his time to research, and considers it to be lower risk to invest in different locations.
Rob D agrees, it's definitely lower risk to invest in different areas IF you do good research to avoid making any mistakes. Rob D also adds a note of caution for this weeks caller, who had stated she had received lots of BMV deals and reminds everyone to check out these deals really thoroughly before going ahead, and be super diligent with your fact-checking.
ASK YOUR OWN QUESTION TO ROB & ROB!
Don't be shy! All you need to do is leave a message with your name and whatever's on your mind.
Just pick up the phone and call 013 808 00035 (normal UK call rates apply).
Or if you prefer, click here to leave a recording via your computer instead.
Quantitative Easing: hard to understand, even harder to say...and about to have a serious impact on your property investing plans. In this week's episode we explain what QE is, what effects it has, and how you can position yourself to take advantage of it.
Useful links:
We also said we'd reproduce a table with some of the figures we discussed in the episode:
Percentage changes in asset prices since 5 March 2009:
This week on Ask Rob & Rob, Sam...
Asks Rob & Rob – What's the catch with student pods?
Rob D starts by agreeing that the propositions offered can look attractive and if all pans out as promised then they do indeed sound great. The key, however, is trying to figure out if things will work out as promised by the developer! So for this reason it's absolutely key to look at the previous projects of the developer and see if their history backs up their claims.
Rob B is against student pods as he feels they're weighted heavily in favour of the people selling the product as opposed to those owning the product. He suggests that many of the claims made by the developers are greatly exaggerated at best. He also makes a very good point in saying that the mortgageability on student pods is pretty much non-existent, and the market if you want to sell is extremely limited.
Rob B finalises by saying he'd never buy one and he would never offer them to RMP customers - so no sitting on the fence here!
ASK YOUR OWN QUESTION TO ROB & ROB!
Don't be shy! All you need to do is leave a message with your name and whatever's on your mind.
Just pick up the phone and call 013 808 00035 (normal UK call rates apply).
Or if you prefer, click here to leave a recording via your computer instead.
Buying property within a limited company is becoming increasingly popular – but when it comes to obtaining mortgages for companies, there are some extra considerations you need to know about.
This week, with the help of our friend Dave Cookson from TC Financial Services, we're running through the important details you need to be aware of. Including:
Related listening:
If you ever need to visualise a process, a flowchart or a mindmap, draw.io is a great free tool to use. Rob B recommends it for fans of Lucidchart, who are now seriously restricting their free plan (the cheek!)
It won't have escaped your attention that the Bank of England have cut the base rate to 0.25%, as reported by the Economist – as well as announcing a new round of quantitative easing.
If you've got tracker mortgages, enjoy the lower payments! As for the longer-term consequences...we'll be getting into that next week.
Have you learnt anything from a company mortgage application that other listeners might find useful?
Was it easier or more difficult than you expected?
We’d love to know, so join the discussion in The Property Hub!
Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air.
If you’d like to hear your name on the show, leave us a review on iTunes here.
Not sure how to leave a review? This video shows you how to review and subscribe on iTunes.
On this weeks podcast, Jack asks a cracker of a question - where are we in the 18 year property cycle.
Given that this is one of Rob & Rob's favourite topics to talk about, they didn't need a lot of convincing to answer this one! Rob B starts off by stating that he thinks we're just heading into the mid-term wobble - where London and the South East prices should soften a little, and the North should grow a little less slowly. Of course the media will term this as a 'crash' but it's likely that the results will show it to be far less dramatic.
Rob D agrees the UK as a whole is heading into the mid-term wobble, and reminds us that the growth has been amazing in the past few years in London and the South East, so the 'wobble' is likely to be felt the most in these areas.
Both Rob B and Rob D agree the aggressive growth is to come in the second half of the cycle, though London and the South East may grow slightly less aggressively due to their growth beforehand.
Rob B reminds us that as most of our podcast listeners have predicted this is coming, it leaves us in a position to be a lot more relaxed about the situation, and make the most of it.
In the course of getting to know hundreds of investors, we've come across a whole cast of characters who probably shouldn't be investing in property at all – including Stressful Susan, Dithering Derek and Gung-Ho Grace.
Will you recognise yourself in any of them? Do you have the right temperament to be a successful investor, or are there traits you need to get under control? Listen to this week's episode and find out!
Related episodes we mention: - When Property Goes Wrong - How Rob B lost £40,000 on one deal
If you ever need to put together a flyer for a property, or just brighten or resize some photos, you might want to try Picmonkey or Canva.
Both are free and extremely easy online image editing tools – perfect for quick, everyday tweaks that don't require anything as powerful as Photoshop.
Chinese buyers' interest in the UK has spiked by 40% post-Brexit, as reported in The Telegraph.
In a way not surprising as the pound is on sale for the rest of the world, but still a remarkable indicator when there's still so much uncertainty about how things will pan out.
What other "characters" would you add to our collection?
Do you have any traits that you need to work on to make yourself a better investor?
We’d love to know, so join the discussion in The Property Hub!
Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air.
If you’d like to hear your name on the show, leave us a review on iTunes here.
Not sure how to leave a review? This video shows you how to review and subscribe on iTunes.
This week, the brilliantly named Rob, asks a question regarding the build to rent scheme, and how this may impact upon the existing PRS. Asking is this a ploy by The Government to eradicate small time BTL Landlords.
Rob D begins by acknowledging that there will definitely be more institutional investment in BTL, and that it is probably healthy for the sector not to be controlled entirely by private BTL Landlords. But thinks there is room for both in the marketplace, due to the demand for different types of products.
Rob B agrees that whilst the balance my shift, it shouldn't do so radically. Rob B goes on to discuss how quality has improved for student accommodation, and how in the long term this could give us a glimpse into the future of the BTL market, and that it could be a good thing if this competition increases the quality of stock available to tenants.
This week we're talking about how to hire for your property team – whether it's a property manager, an assistant, a bookkeeper, or just about any other role you can think of.
We've talked about the benefits of hiring many times, so this week we talk through the exact process we use to maximise our chances of finding the perfect candidate.
We cover:
Resources we mention are:
This week's resource is a Trello board, which is the template we use when we're executing the hiring process we talk about in this episode. Take it, make whatever modifications you want, and you'll find that it makes it way easier to keep track of where you're up to with all your applications.
And as an extra bonus resource, Rob B was on the Graduate Jobs podcast talking about how to land a job in property – so if you're seeking a role rather than hiring for one, make sure you check out his words of wisdom.
House price growth is hotting up in the north and cooling down in the south, according to The Telegraph.
Wow, does that mean we've actually got a prediction right for once?
Next week will be the first Thursday of the month, which means...it's meetup time again!
There are over 30 meetups taking place, and they're totally free. All you need to do is find one near you, put your name down, and turn up for an evening of friendly and informative chat with other property obsessives.
See the full list and sign up here
Do you have any tips from when you've hired for your property team?
Which tasks do you wish you could hire someone to take off your hands?
We’d love to know, so join the discussion in The Property Hub!
Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air.
If you’d like to hear your name on the show, leave us a review on iTunes here.
Not sure how to leave a review? This video shows you how to review and subscribe on iTunes.
In this week's episode, Rob & Rob talk about getting a mortgage when you're not yet a property owner. Rob B says that there are a lot of mortgage lenders out there, but as a non home owner, and not yet a property investor, the pool of products available are actually quite small.
Rob B goes on to say that in 6 months time there will be more options. Both Rob and Rob discuss the options available to you and say how important it is to have a good mortgage advisor.
This week it's all about the money, as we explore alternative ways to raise funds for your property investments.
We explore the pros and cons of using:
Each funding source we discuss could be (and most will be) a separate episode in itself – but in this value-packed episode we give you a quick run-through of the different strategies you might want to have in your kit, and how to decide which is the right tool for the job.
You've probably rhetorically asked yourself, "where did today go?" – but with Toggl, you can actually look back and check.
It's a time-tracking tool (that integrates nicely with Chrome) that makes it easy to monitor the amount of time you spend on different tasks and projects. It involves some manual work and discipline, but the act of being mindful of your time can be beneficial in itself – and Toggl gives you reports that you can dig into to review your biggest time-sucks.
Certainly this won't be for everyone – but if you feel like you'd benefit from the insight of knowing how you spend your days, Toggl is a great (and free) way of doing it.
As reported in The Telegraph, six commercial property funds have suspended trading – basically meaning that investors aren't allowed to take their money out.
We discuss the nature of different types of funds, and what (if anything) this news tells us about the future of commercial property.
Which of the financing methods we mentioned have you made use of?
Are there any others that we didn't think of?
We’d love to know, so join the discussion in The Property Hub!
Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air.
If you’d like to hear your name on the show, leave us a review on iTunes here.
Not sure how to leave a review? This video shows you how to review and subscribe on iTunes.
In this week's episode, Rob & Rob discuss the pros and cons of buying a home or an investment property.
Tony has been living overseas and is looking to return to the UK with his young family - he doesn't have enough to buy in the location the family want to live and he wants to know whether to buy an investment property instead.
Rob B starts off by addressing the pros of investing in a property, then renting a home to live in. He says that if you're moving to a new area, renting will give you a chance to see if the area is actually right for you. He then goes on to say that you can build your asset base by investing in property, then use your capital to invest back into buying your own home, leading to a double win.
Rob D talks about shaking off the mindset of "You have to own your own home", and goes on to cover some of the advantage of owning your own property, such as accessing more mortgage options.
You buy your property, you put a tenant in and take their first month's rent, you check your bank account a month later and...nothing.
Your tenant has fallen into arrears...and how you handle it could make the difference between a swift resolution and months with no income. In this episode, we take you step-by-step through the process of dealing with every investor's nightmare scenario.
We discuss:
If you're anything like Rob B, your wallet is bulging with receipts rather than banknotes – and you're either letting expenses go unclaimed, or having to buy your bookkeeper one heck of a Christmas present.
Luckily, Receipt Bank can come to your rescue: all you need to do is take a photo of the receipt on your phone, and it'll store it securely for you. It'll even extract all the key data ready for automatic uploading to your cloud accounts package like Sage, Xero or Kashflow.
The best thing is the easier the process of dealing with your receipts is, the more likely you are to actually do it – which means you won't be paying too much tax as a result of overlooking legitimate expenses.
Buy-to-let mortgage rates are falling in response to the slowdown in lending demand after the stamp duty increase – and more lenders have been cutting their rates in the wake of the EU referendum.
Not only that, but the Bank of England has relaxed capital requirements for banks – freeing up £150 billion of potential funding for lending.
What does this mean? Well, cheap and easy money tends to mean higher asset prices as the funds have to go somewhere – and it also means that the lessons of the previous crash have been forgotten. This is exactly what the property cycle tells us should happen – so once we come out of the mid-cycle dip, we know what's meant to happen next...
In October we're holding our first ever Property Hub Summit outside London – and you get to choose where it is!
There's still time to swing it in the favour of your chosen city – there are several gathering plenty of votes, but it's too close to call right now...
What's your own process for handling tenants who fall into arrears?
Have you ever needed to go through the court process to evict a tenant, and do you have any tips for other Hub members?
We’d love to know, so join the discussion in The Property Hub!
Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air.
If you’d like to hear your name on the show, leave us a review on iTunes here.
Not sure how to leave a review? This video shows you how to review and subscribe on iTunes.
Brian from Birmingham and his partner are eager to invest and have saved up to buy their first property, but will need some more capital in order to complete their first flip.
Rob & Rob give their tips on gaining finance in this situation and note the things to be aware of as potential pitfalls to gaining finance with no previous investment track record.