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The Property Podcast

The Property Podcast is the podcast for all property investors, new or experienced. Rob Bence and Rob Dix discuss a different property topic and property news item every week, passing on their knowledge and experience to the listeners. They both invest in UK property so they practise what they preach. No hard sell, no bull, just straight-talking property investment advice!
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Now displaying: August, 2017
Aug 31, 2017

Investing through a limited company has become exponentially more popular over the last couple of years – but there are aspects of limited company investment that you’re normally not told.

In this episode we bring together our own experiences and observations to shed some light on:

  • The higher costs associated with limited company lending
  • The time you can expect an application to take (and some corrective action that might be needed)
  • The extra steps you’ll need to take, compared with individual applications
  • Some points to be aware of as a result of the market being so new

None of this is intended to put you off: just to encourage you not to rush blindly into something without getting the right advice, and give you some pointers for what to expect along the way.

RESOURCE OF THE WEEK

This episode is about some of the little-known details, but we’ve also put together a course about the bigger picture aspects of limited company investing.

It’s completely free, and you can watch it here

NEWS THIS WEEK

Superstar fund manager Neil Woodford has had a rough year – and he’s trying to turn it around by buying into property shares, as reported in the FT.

This doesn’t mean you should blindly pile in too – but it might give you encouragement that he clearly believes in the health of the sector.

JOIN THE CONVERSATION

Is there anything you wish you’d known before buying in a limited company?

Any experiences that other investors could learn from?

We’d love to know, so join the discussion in The Property Hub!

IF YOU ENJOYED THE PROPERTY PODCAST, PLEASE LEAVE A REVIEW ON ITUNES

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.

Aug 29, 2017

It's time for another question in this week's edition of 'Ask Rob & Rob', John Ellison...

...asks Rob & Rob...How can the wealth accumulated through property investing be used for social good?

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.

NEED MORE ANSWERS?

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 8 places available at each!

Interested? Click here to find out more.

Aug 24, 2017

We’ve got The Property Hub Summit coming up in Manchester and our quarterly webinar for magazine subscribers.

If you’re a subscriber to The Property Hub Magazine, you’ll gain access to our quarterly webinar - just for subscribers only and should receive an email very soon on how to gain access to the webinar. If you’re not a magazine subscriber - get in quick, you might make it in time to catch the upcoming webinar, but you’ll also have access to the digital back issues and recordings of all previous webinars. Visit http://thepropertyhub.net/magazine/

This week the Rob’s are taking their predictions even further… 20 years in fact!

Predicting what's going to happen next year or even next week is not easy, but predicting what's going to happen in 20 years time even more so! Spotting trends early will give you an idea of where things are going and how you can position yourself ahead of the curve.

Prediction 1: The buy-to-let market will be mainly for professional investors

The days of dipping your toe into buy-to-let with minimal effort or knowledge are pretty much gone e.g. the number of traffic to The Property Hub forum and podcast as dramatically increased, even more so since the changes by the government to tax and legislation - that’s because buy-to-let isn’t easy anymore and people need the knowledge. In 20 years time it's expected the buy-to-let market will look more professional, with fewer amateurs doing it for themselves. There are professional PRS schemes that are built just for pension companies right now and this is a new phenomenon. In many cities the first buildings are just going up e.g. in Belfast, London and Manchester and many more are being built. These blocks will never be sold and are just built for the pension companies, who will let them out to professionals. However it can be predicted that these services will be offered to individual investors as well, who will buy a unit before it’s built and will get long-term rental guarantees. There will still be a place for the independent landlord - only they must be more professional and offer a higher standard of service. This will be a gradual change but as predicted in 20 years time, this will be the landscape of the buy-to-let market.

Prediction 2: Purpose built flats with all services included

This includes your bills, internet, concierge, on site leisure facilities - all bundled in for one payment! No worries, just your rent to pay! This has already started to happen but It’s predicted this will become much more common, for the main factor of convenience.

Prediction 3: Continued demand for smaller, more central units

Again this is something that's already happening as people are prioritising location over space. Younger people specifically would rather live centrally than further out in the suburbs with lots of space. As more people are renting than owning, they tend to have less stuff than before, they’re much more mobile and the need for space and a garage to store stuff becomes less important. This is the trend - more central and smaller units.

Prediction 4: Lettings and estate agents

Would you still go into a travel agents on the high street to book your holiday or would you book it yourself online? This is the case with lettings and estate agents, as it makes sense for people to go online and not visit a premises to be able to buy or rent a property. Most people now choose their properties on Rightmove or Zoopla (although we all love a cheeky peep at the lettings / estate agents window!). Although there is a huge resistance from people in the industry to this change as they believe people will still want to deal face to face. Older generations still may feel like they want to deal face to face, but the younger generations aren't really as fussy as online is more convenient. Rob B predicts that in 20 years times there will be very few lettings / estate agents on the high-street and online agents will take over through adapting and changing with modern consumer needs and requirements.

Prediction 5: Increase in indirect property investment

In 20 years time there will be a lot more indirect investment in property: crowdfunding, funds for residential property, funds for commercial property. There is already a lot of innovation in this sector e.g. crowdfunding wasn’t really around years ago but we are starting to see more of it now (although it’s extremely niche). This is going to be driven by technology and the fact that investors will need to have the knowledge, due to government changes in tax and legislation (prediction 1).

Prediction 6: Mortgages - increased time frame

Mortgages: Are we possibly going to see lifetime or even inter-generational mortgages in the UK? The government will need to find a way of making it possible for people to keep on affording property more expensive relative to their wages. The only way to do that is to increase the time frame - so the question is, will we see mortgages that will outlive us? One to watch!

Wild Card Predictions!

Rob D: Paperless property purchasing, maybe even further with block chain base technology to prove ownership instead of scribbling on a piece of paper and posting it off. The system may become more automated and conveyancing solicitors will be a thing of the past if they don’t radically change what they do.

Rob B: Rightmove and Zoopla could turn into an agent themselves and compete with the likes of Purple Bricks who are growing in strength all the time. At some point if the likes of Purple Bricks gets too big and powerful, they might not need Rightmove or Zoopla and therefore become an agent! This is a wild prediction which Rob B says could (not will!) happen. Watch this space!

Resource of the week

Book: UNSCRIPTED: Life, Liberty, and the Pursuit of Entrepreneurship - MJ DeMarco

Order on Amazon here.

Join the conversation over in the forum

Other suggestions? Join the conversation in the forum.

If you enjoyed The Property Podcast, please leave a review on iTunes

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.

Aug 22, 2017

It's time for another couple of questions in this week's edition of 'Ask Rob & Rob', two listeners...

...ask Rob & Rob...Will the resale value of student accommodation hold up? PLUS: Does the 18 year property cycle apply across the UK?

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.

NEED MORE ANSWERS?

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 8 places available at each!

Interested? Click here to find out more.

Aug 17, 2017

So this week we put out episode 100 of Ask Rob & Rob, which is a pretty cool number. If you haven't asked a question yet, then it's easy to do - jut call 013808 00035 or go to thepropertyhub.net/ask. 

We are also expanding with Yellow and are reaching new cities all the time. Did you know we now cover all of the NorthWest, Yorkshire, Midlands and London? Because of this we need more tradespeople all the time, can you help or do you know someone who might want to be added to our little black book of awesome trades? If you do, click here to get in touch. 

Now on to the topic in hand this week, unusual ways to find tenants. Most landlords will be aware of Rightmove and Zoopla as the big portals for Sales and Lettings and any agent worth their salt should be listed with both. If you self manage you should also be using an online service to list with these two main portals.

Gumtree

A major listing site for anyone with something to sell, but did you know you can also let property here. We tested gum tree out recently a got great results in some areas like York, but not others like London. It’s free to list and the paid version which we use is still very cheap. So why not try it for your area and see how you get on.

Foreign tenant networks

There are many areas of the UK where communities of foreign nationals live. Lincoln being a prime example of this. If you have a few properties in one of these areas then once you’ve let one you may find it easier to let them all. We have found that by treating these tenants well, they are quick to place other tenants from their network for you. This maybe through online portals they communicate through or word of mouth.

Facebook groups

Yes the world's biggest social media platform has it’s uses outside of endless cat videos and too many pics of other people's children you really don’t need to see quite as much as you do. But it can also be a great place to pick up tenants. There are many community Facebook groups and chances are your perspective tenants are checking them out. 

Refer a friend

So simple but it works, if you have a portfolio of properties in one area and one becomes free then ask your current tenants in your other properties to refer a friend. At Yellow we offer these tenants a £50 Amazon voucher to motivate them.

Major local employers

You should be only investing in areas with lots of major employers this helps tenant demand and increases the potential for capital growth. It’s one of the key fundamentals you should look for. So if you’ve made a conscious choice to invest in one of these areas then why not go straight to the source for tenants. If we have a number of properties in one block (which happens because investors who use RMP go on to use Yellow) we will contact major employers in the area and attempt to get on their bulletin boards or listed on their intranet. As nobody else seems to do this, you’d be surprised at the success rate. We’ve had success with airports and factories in the past.

News story of the week: Liverpool handed boost for 2022 Commonwealth Games by being named UK's top sporting city

Rob B loves this news story for obvious reasons. Check out the latest boost to Liverpool's seemingly never ending success story in recent years as a powerhouse of a city, you can read all about it here.

Resource of the week

Stands is a Fair AdBlocker that blocks ads, popups, malware, and trackers. It's fast, light, speeds up your browsing and saves you time. And if you agree to allow a few ads on participating websites, they can be sustainable while respecting your choice. Find out more here.

Join the conversation over in the forum

Other suggestions? Join the conversation in the forum.

If you enjoyed The Property Podcast, please leave a review on iTunes

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.

Aug 15, 2017

It's time for another couple of questions in this week's edition of 'Ask Rob & Rob', Greg...

...asks Rob & Rob...How do I get JV finance for my project? PLUS: How does the long-term debt cycle relate to property?

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.

NEED MORE ANSWERS?

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 8 places available at each!

Interested? Click here to find out more.

Aug 10, 2017

We've waited four years for Rob D to rant and this is the episode where it finally happens.

This week's topic takes information from an official government publication 'The English Housing Survey' which you can find here.

Here are some of the facts we look at in the report:

Size & composition of rental sector

  • 4.5m households are in PRS. That’s 20% of all households. Up from 12% in 2006
  • 24% of private renters receive housing benefit, but only 5% had their full rent covered by HB
  • 74% were working

Ability to pay rent

  • Households in the PRS spend 35% of their income on rent. 45% in London, 32% excluding London
  • 71% found it “fairly” or “very” easy to pay their rent. Falls to 41% in London
  • 9% of private renters had been in arrears in the last year, compared to 25% of social renters
  • Mean weekly rent is £184 overall: £300 in London, £153 outside London. Slightly more expensive than the average mortgage payment
  • 66% of private renters have no savings. Of the 1/3 who did, 41% of them were under £5,000. Scary!

Length of tenancy and satisfaction

 

  • Average tenancy length 4.3 years

 

  • 82% satisfied with accommodation. 10% dissatisfied, compared to 13% of social renters
  • Of those who had repairs carried out in last 12 months, 18% were dissatisfied with how it was done. Compared to 22% of social renters

Why last tenancy ended

  • 73% because they wanted it to. 11% ended by landlord. Only 2% left because of rent increase
  • Of those 11% ended by LL, 63% were because the landlord wanted to sell or use the property (but could be skewed)

So these stats would indicate that private landlords are not doing too bad of a job in fact.

But hang on a minute, another perspective came out recently which, on the face of it, looks very different which was reported in Guardian as "Landlords are turfing people out of their homes without reason - and it's completely legal" And here we have the fuel for Rob D's very first rant in four years. You'll have to listen to the podcast in full to listen to him go... 

Resource of the week

Thanks to Damien for this resource, which is a good one. It's another look at the private rental market and gives you even more data than we've discussed already. Check this one out here

Join the conversation over in the forum

Want to join in the ranting? Join the conversation in the forum.

If you enjoyed The Property Podcast, please leave a review on iTunes

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.

Aug 8, 2017

It's time for another couple of questions in this week's edition of 'Ask Rob & Rob', Russell...

...asks Rob & Rob...Can I trust my mortgage broker? PLUS: How do I find an absent owner?

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.

NEED MORE ANSWERS?

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 8 places available at each!

Interested? Click here to find out more.

Aug 3, 2017

It's Meetup night tonight, and we're hoping lots of you are headed to our free and friendly gatherings all across the UK and beyond. If you haven't yet booked your ticket you can find your nearest location here. Rob B is heading to the coast, and will be in Bournemouth saying hi to some local Hubbers there.

Now, on to this week's episode which is all about a shake up in the mortgage market that may have just slipped under the radar. Now, some of you won't be affected by this at all but some of you really will so you wont want to miss the details.

So, the Bank Of England has an arm called the Prudential Regulation Authority (PRA) that regulates lenders. They’ve brought in new rules that lenders must follow, to avoid the risky lending that contributed to the last crash.

This is happening in two parts:

  • Tougher rental cover tests, since January 2017
  • “Portfolio landlord” underwriting, from September 2017

So what are the rules on rental cover:

  • The rent must cover at least 125% of the mortgage payment when the interest rate is at least 5.5% – but many lenders are using 145%
  • Rule of thumb - each £100 of monthly rent will support £15,000 of borrowing
    • So £500 rent = £75,000 borrowing. If it costs £100k, you’re fine. More than that, you’ll need a larger deposit = lower ROI
  • However this doesn't apply to:
    • - Mortgages for limited companies
    • - Bridging lending
    • - Commercial or semi-commercial property
    • - Holiday lets
    • - Any loans with a fixed term of five years or longer
  • Effect: You won’t get as much leverage for lower-yielding properties

 

What about the forthcoming portfolio Landlord underwriting?

  • So the definition of “portfolio landlord” is someone with 4 or more mortgaged properties
  • Any properties in a Ltd Co also count towards the total
  • Every lender can decide what they want to see, but PRA suggests they look at:
    • - Property portfolio spreadsheet
    • - Cashflow forecast spreadsheet
    • - Income and expenditure spreadsheet
    • - Business plan
    • - Three months' bank statements
    • - SA302s and tax overviews from HMRC
    • - Tenancy agreements for all properties
  • Basically you need to make a case for the new loan in the context of your entire “rental business”, not just the property you’re buying
  • Effect:
    • Slower applications because more for lender to look at
    • More declines, because there’s more they could decide they don’t like
  • (Doesn’t apply to Ltd Companies, but they have to do most of this anyway)

So what does all of this mean?

  • The rental cover tests means bigger deposits in London and a few other areas, but shouldn’t affect elsewhere
  • Portfolio Landlord criteria will make for painful applications, but it’s hard to be annoyed about it because if you were going for a business loan they’d want to see all this stuff - and it is a business
  • BUT it’s yet another measure that will deter amateur landlords...which could play into the wobble and mean opportunity for investors who are serious

News story of the week: Research reveals extent of price drops by property agents in London

35% of London properties have had a price reduction since they were first marketed.

Nationally, 77% of properties are selling below asking price.

Wobble time? Maybe so. It certainly looks like a buyers market right now. 

Resource of the week

http://podsync.net/ is a simple and free service that lets you listen to any YouTube or Vimeo channels, playlists or user videos in podcast format.

Join the conversation over in the forum

Will this be something that affects you? Join the conversation in the forum.

If you enjoyed The Property Podcast, please leave a review on iTunes

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.

Aug 1, 2017

It's time for another couple of questions in this week's edition of 'Ask Rob & Rob', Kush and Fez...

...ask Rob & Rob...How can I flip properties remotely? PLUS: The costs of 10-year fixes

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.

NEED MORE ANSWERS?

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 8 places available at each!

Interested? Click here to find out more.

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