This video is about BREXIT and how savvy investors will be capitalising on the opportunity presented by the market "uncertainty"...
In the video, you'll discover:
Hi folks, John Wilson here from Property Investment Blueprint. And today I want to talk a little bit about BREXIT and the situation regarding property investors and opportunities that maybe are to be had. Now I just want to start this one with a quote from Warren Buffett the legendary investor. So, he said "be fearful when others are greedy and greedy when others are fearful".
Now, what does he mean? Well in the context of property, if everyone is greedy, then you get the situation like you had before the crash in 2008. You know I had people calling me saying I've got 200,000 pounds to invest, you know, help me buy some property just any property, you know people become very undiscerning and just buy up everything and anything. No, that's when you have to worry because as we know it crashed soon after that.
So that's when we investors should be start to be wary if not fearful. And now if everybody is fearful then there's always opportunity like no, I mean think about it. If you are negotiating with a seller who's fearful, do you think they're going to be a little bit more negotiable than they would be normally? So essentially what we need to do is be contrarian. We need to do the opposite of what the mainstream, especially the media those fear-inducing headlines are telling us.
I'd be more inclined to trust media pieces like the one in The Telegraph an article that stated that a No-deal BREXIT could create the perfect buying opportunity for property and keep mortgages cheap. So yeah, I mean well informed property investors, myself included, uses the crash in 2007-2008 to their advantage for example, getting discounted deals and they're reaping the rewards today and don't forget, you know, if there is a crash the market always recovers because housing is a basic human need and it's recovered after every other crash and this period is going to be no different.
I believe it's improved over the past few years since the last crash, but there is a housing shortage in the UK. Don't forget.
And of course procrastinating is never a good thing and this uncertainty could potentially last a very long time, even years. So don't be paralysed with fear or you'll never get started. Now one more point, you know, if you are buying if you're if you are perhaps fearful of of a crash in the market of your dropping prices, don't forget if you're buying below market value. Say 20 to 30 percent below market value.
Then you know if the market dips 15-20 percent then you're still, you know, even if it goes as far as this kind of you got then you're still breaking even and of course if you're holding for the long term, then which was most people are so if you should be if you're if you're buying then unless of course you're flipping then you're going to be fine.
And with the market softening as it is in some places because of this uncertainty then they're going to be more motivated Sellers. And if you're dealing with motivated sellers to get to buy or perhaps package property to ordeals to other investors. Then that's going to be an advantage for you because the more motivated sellers on the market that the better deals that you're going to get.
So that's the first strategy that investors are going to be using to take advantage of this uncertainty. If they're going to be either they're going to be targeting these motivated Sellers and they were never going to buy themselves for big discounts or going to be packaging those deals on to other investors who are buying for a fee.
So now when we go and of course, you don't even have to be buying to take advantage of the situation. Instead you can package the deals to other investors, but you can also use other strategies like rent to rent. So that is where you rent a property from another landlord with the aim of running it as an HMO (house in multiple occupation) and renting out each of the rooms individually. And that obviously has a big advantage in that your cashflow is going to be far higher with that type of let. And with landlords wanting to get out of the market then that's one way that you can help them get out the market as such and take their property problem away from them.
So rent to rent is one way and the third strategy is lease options so a lease option or property option. If you're not aware is a strategy that you can use to to have an option but not the obligation to buy a property at some point down the line and usually a few years in the future. And during that time you get the right to you can control the property and you're able to use it as you wish. So normally you would you would rent that out to two tenants or perhaps running it as an HMO as we just discussed.
And then you can have the option down the line to buy that property. And again, it's an option. So if that option doesn't suit you, then you can go to give the property back to to the landlord but you your aim is really going to be to try and purchase that property later on.
So that's three ways that investors are going to be taking advantage of this current uncertainty. So and as I say, you know the uncertainty will make people more negotiable. So get out there and take advantage of that.
So if you want to find out more about some of these strategies then why not take our free property course and you can sign up for that and freepropertytraining.co.uk that's freepropertytraining.co.uk. And if you enjoyed this video then like it share it and I will see you in the next one.
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