ASK456: How big is too big? PLUS: My flat has fallen in value! How do I remortgage?
Nov 26, 2024
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Rob and Rob tackle listener questions about property portfolio management. They discuss the balance between portfolio size and hassle, emphasizing quality over quantity. The conversation shifts to why the wealthy often favor stocks over real estate. Another listener, Marco, grapples with how to remortgage after his flat's value drops since purchase. The pair offer insights on navigating these market changes and the complexities of remortgaging in a fluctuating market.
09:06
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Quick takeaways
Scalability in property investment requires careful management to avoid complications, suggesting a focus on larger, fewer properties for efficiency.
When remortgaging a depreciating property, consulting current lenders and analyzing sold prices are essential for securing the best deal.
Deep dives
Understanding Scalability in Property Investment
Scalability in property investment is a crucial consideration for building a successful portfolio. While property offers advantages such as leverage, there are challenges related to liquidity and management complexity as one scales up. The ideal approach often involves consolidating assets to focus on fewer, larger properties, allowing for more efficient management and reduced headaches. Additionally, as properties multiply, transitioning from a buy-to-let portfolio to managing a property business can be daunting, leading investors to consider diversifying into other asset classes.
Navigating Remortgaging in a Declining Market
When facing a potential decline in the value of a property during the remortgaging process, existing lenders can be a valuable resource. Staying with the current lender may provide a smoother process, often avoiding the need for a new valuation, which can be beneficial in times of fluctuating markets. It is crucial for property owners to analyze sold prices in their area rather than just asking prices, as this will provide a more accurate reflection of property value. Consulting a mortgage broker can also help explore various options and ensure that the best deal is secured while minimizing complications.
Rob & Rob are back with two more listener questions!
(0:41) Matt’s curious to know at what point does a large portfolio become too much hassle, even with the help of management companies. He’s also keen to get Rob & Rob’s take on why the super-rich don’t leverage property investment as much as other assets like stocks and bonds.
(5:18) After buying his flat in London for £700K two years ago, Marco’s noticed similar properties are now selling for less and is wondering what his best remortgaging options are given the change in market value.
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