The Progressive Property Podcast Mark Homers 2020 Property Predictions!
Do you want 2020 to be your year in property? Do you want In today’s episode Progressive Property Co-founder, Commercial Conversion expert and best-selling Author, Mark Homer joins the show to bring you his 2020 Property Predictions. Tune in to the opportunities, threats and challenges 2020 will bring. Mark covers everything from BREXIT to interest rates and from property prices to supply and demand. It doesn’t matter if you’re a beginner and a pro, this episode is for you.
KEY TAKEAWAYS
2020 Property Predictions
- Since 2016 we’ve had large central London price falls of up to 25-30% but Central London has now reached the bottom of the price falls and we may seem some growth in residential house prices in 2020 and beyond. The risk has come out of them and the future looks bright in those parts London. Since the election has happened there is a lot more certainty in the market and investors are more positive.
- Confidence will gradually lift through 2020 with a better Brexit negotiating stance. Looking at GDP and the purchasing managers index the UK is looking to head on an upward trajectory.
- Over the past 3 years, we’ve seen a sustained attack on residential landlords form the government with stamp duty increases, surcharges, section 24 and other issues putting a lot of landlords off buying properties. As a result, professional landlords have been buying the smaller properties accidental landlords have been selling meaning there is now less supply on the residential market. If there are less supply and demand remains the same you may see residential prices rise in 2020. If you’ve got the right strategy and you understand the regulations there is an opportunity to navigate the property market and purchase the properties smaller landlords are selling and make a profit.
- We’re not in a recession, GDP is increasing and we’re still growing but 2020 is not going to be a ‘bumper’ year with a lack of investment in the UK due to the political uncertainty. As a result, the Bank Of England needs to continue to generate demand and therefore interest rates are likely to remain flat and perhaps unchanged in 2020.
- Towards the end of 2020, we will see some the change in sentiment will start to reflect on the banks as we move into the ‘roaring twenties’ this could be a golden few years. The banks could become more aggressive, the yield curve has moved from invested to in-form and this all indicates that a recession is less likely and money markets will become freer. As a result, banks will lend at lower rates and higher loan to values. We could see 95% mortgages in buy-to-let, investment loans and development loans, just as we’ve seen with residential mortgages since the last recession.
BEST MOMENTS
“Small one bed flat yields have been rising since the Brexit vote”
“Since the election has happened there is a lot more certainty in the market and investors are more positive”
“The property investing backdrop is looking more certain”
“As we get closer to the Brexit deadline the media will ramp up the fear”
“Section 21 could mean you could evict tenants for any reason”
“There is lots of stuff reducing the supply of properties available to let and therefore residential prices may increase”
“Focus like a laser one thing and become the best at it”
“2020 could be very could for all bank lending”
VALUABLE RESOURCES
ABOUT THE HOST
David is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004.
In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him, and he enjoys empowering other landlords by sharing the knowledge he has gained.
The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours.
CONTACT METHOD
https://www.linkedin.com/in/david-siegler-7b126316/
https://www.facebook.com/DavidSieglerInvestments/
http://progressiveproperty.co.uk/
ABOUT THE GUEST
Mark Homer is an entrepreneur investor. He has worked with investment since he was 15 years old using the laws of wealth! He is a spreadsheet analyst with an impressive following from major publications including BBC Radio, The Wall Street Journal, The Independent, and co-authoring the UK’s best-selling property books. Mark has always looked for the best investment vehicle, and at the end of 2007 with Rob Moore the co-founder of Progressive Property his joint portfolio produced more profit than any of the other investments he’d tried in the last ten years, combined.
CONTACT METHOD
Email: Markhomer@progressiveproperty.co.uk
LinkedIn: https://www.linkedin.com/in/markhomer1
Facebook: https://www.facebook.com/markprogressive
Twitter: https://twitter.com/markprogressive