The Progressive Property Podcast The Impact and Opportunity Of The Coronavirus In Property
Are you sick and tired of listening to all the negativity in the news in regards to the new pandemic COVID-19? Well, tune in today as Kevin informs you of some of the risks you may face during this difficult time. More importantly, how to overcome these risks and how to turn this into one of the greatest opportunities you will ever receive in your property journey.
KEY TAKEAWAYS
Risks and opportunities that the Coronavirus will impose on the property industry.
Risks:
- There is likely to be less viewings. Meaning there will be less opportunity for you to do viewings on potential property investments, as well as less tenancy viewings on your properties. Incentivise your current tenants to stay, they are also unlikely to leave their current accommodations.
- Selling a property. People will be rethinking moving and staying in their current homes. If you are desperate to sell, that means reducing your property prices. This is a good opportunity for property investors as you will be able to pick up properties at a lower price, and earn a profit on them when the market picks back up.
- Serviced accommodation. If you own serviced accommodation relying on the tourism industry, you will face risks as there are not as many people travelling. You need to react quickly, look at contractors, open reach workers and commuters. Hotels are risky and people would prefer to be in a clean serviced accommodation alone.
- Less productivity. If people are ill and self isolating for the recommended 2 weeks, you may be short of staff who are renovating parts of your property, meaning delays. Look for alternative build teams.
- Tenants unable to pay rent from contracting the virus from one another. Create simple rules in your HMO about hygiene and social distancing. Look now for rent guarantee insurance, to ensure all rent is covered.
- Delaying getting deals completed. There may be a delay in the buying or selling of property. Perhaps you should re-evaluate the current situation and hold back on purchasing as there may be some better opportunities arising.
Opportunities:
- It has never been easier to raise Joint Venture partnerships. Joint venturing is a brilliant way to grow your business. People who are looking to get their money out of the stock market will in turn invest in property, if you can provide the knowledge to these people and joint venture with them you will come out on top.
- Interest rates have dropped to the lowest they have ever been in history. People who have money in the bank as savers, will be making virtually nothing on their money now. They may decide to take their money out of the banks and invest in property.
- Cheaper finance. If you currently have a mortgage, you will end up paying less on your mortgage. If you are looking to buy property you will receive cheaper finance on your properties. It is a great opportunity to get yourself a cheap long term fixed rate mortgage.
- Lower purchase prices. There will be deals everywhere. Look for opportunities rather than worrying about the impact of the virus.
BEST MOMENTS
“We cannot bury our head in the sand and not think about the future”
“Be looking for the opportunity”
“Be proactive in this process and we will come through this”
“What we can control is the decisions we make”
“There might never be a time in history for an opportunity like this”
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.
CONTACT METHOD
https://www.facebook.com/kevinMcDonnellProperty/
https://kevinmcdonnell.co.uk/
http://progressiveproperty.co.uk/