The Progressive Property Podcast Property Market Opportunities (Are You Ready?)
We’re going to begin to see an impact in the property market when mortgage holidays end and there is going to be some phenomenal opportunities coming to the property market in the coming months and you need to position yourself to take advantage of these property opportunities by having the right mindset, negotiation skills and creative property investment strategy. Listen in to hear Kevin share his thoughts, tactics and strategies for what’s predicted to be the biggest retraction in the economies history.
KEY TAKEAWAYS
- The economy will start to see many more people unemployed as the government furlough scheme ends and as a result, people will be struggling to pay their mortgage and therefore will become motivated landlords and sellers bringing about an opportunity for property investors
- In an economy with high unemployment and motivated sellers, you need to be creative in terms of your property strategy. Strategies such as exchange delayed completions, assisted sales, rent2rent and deal packaging are the types of strategies that will give you an advantage when the opportunities arise.
- You need to pound-cost average and surf the wave of the market as prices go down because in 5-7 years time the property market will be higher than it is today. The goal is to purchase a property with positive monthly cash flow on a 5 year fixed rate and by the end of your fixed term the property will have gone down in value and back up again above the price you paid for it.
- There are lots of businesses that will not survive the current economic situation and therefore there is a lot of retail and commercial opportunity with empty buildings. For this, you should consider commercial conversions with permitted development to increase the value and sell it on as part of an assisted sale.
- When negotiating a deal no matter how much experience you have you need to show the owner that you know what you’re doing. There are 6 steps to property negotiation and it starts with building a rapport.
BEST MOMENTS
“There is a risk that lenders will see the mortgage holiday takers as a risk for additional lenders in the future”
“There’s no such thing as below market value as you’re purchase price is the value and your aim is to add value by refurbishment.”
“You cannot time the property market”
“You cannot wait for the bottom of the market or you will miss the boat”
“Commercial property will most likely drop more than residential properties”
VALUABLE RESOURCES
https://www.amazon.co.uk/No-Money-Down-Property-Investing/dp/1909846767
ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
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