Bronwen Vearncombe, Dan Maskell and Jon Woodman joined us as panel speakers for our second Property & Construction industry online meetup. Here are the topics we covered:
– The impact of scrapping Stamp Duty
– Investor opportunities
– Property valuation changes and marketplace trends
– Development opportunities
All this discussion sandwiched between #NetworkMyClub members and guests networking.
Property Investor, #1 best selling author.
Check out Bronwen’s book: Building Your Dream Life: How Property Can Help You Quit the Rat Race
Lettings, Rentals and Investment
Director of The Accommodation Company
What’s the impact of scrapping Stamp Duty?
Bronwen Vearncombe: It’s boosted the marketplace. There was initial fear in the market thinking they had to wait, but we need to get around it. The market is buoyant, there’s plenty of opportunity to invest at the right price and take advantage of the tax holiday before it finishes in March.
Jon Woodman: Those people that wanted to move pre-lockdown are doing so and taking advantage of the opportunity.
The buoyant market is in the £400,000-£500,000 range where you can find the biggest saving. Outside of big cities there’s more demand for people who want a quieter life.
My gut feeling is that as furlough starts to end, people are feel less confident about whether they’ll have a job. So, we’ll start to see things drop off
Dan Maskell: Increased enquiries, choice and interest for people. There’s been 18 in the last two days changes. And it’s changing daily. You need to speak to an expert about taking out mortgages.
It’s a really positive thing for the market. The biggest question we’re getting is ‘how much can I borrow?’
What are the opportunities for investors?
BV: There’s a huge demand for rental. We’re not building enough houses and haven’t done so for the last 10/20 years. The population has increased. The best opportunity for an investor is to create a rental property for someone to live in. Interest rates are going to be low for a while, so with such demand it’s time to be investing!
Understand your marketplace. There are different markets for different times, for example people going on holiday’s and people working contractually.
JW: House prices are high, with lots going for over asking price. Some have gone over 10% of asking price. There will be opportunity to create new spaces for investors.
With an increase in short-term lets and staycations, if you are going to invest, it’s important to think about where that may be. Think about the location and target market, then build your business case on that. Some places will only produce revenue 6 months of the year.
DM: To debunk a myth: you can get a mortgage if you’re on furlough, have taken a payment holiday or a loan. Lenders will use common sense and take circumstances into account.
What are you noticing with valuations, and how do you see the marketplace changing over the next few months?
BV: The market is buoyant. There’s plenty of opportunity in the right location. Where do people want to be living? Where are the motivated sellers? Support those people.
It’s encouraging the market is like it is, but there’s a danger that the market could plummet. Understand the environment your property is in and possible ROI.
JW: At the beginning there was lots of down valuing due to uncertainty. It’s people’s desperation to move that is causing houses going for above asking price.
DM: Good news for lenders is that due to demand for property, prices are high. People doing evaluations are trying to predict the next 3 months, so may value your property lower.
What are the opportunities for developers?
BV: There’s been many changes for planning property. You’re now allowed people to build above property – add stories on – all because we haven’t got enough property to live in.
JW: There’s been lots of rule changes about permitted development. Lots of sites that were not possible to build on before, are now able to build. Investors are hoovering up as many sitesa s they can.
DM: There’s been far more interest due to Stamp Duty changes. More people are reaching further North geographically to increase yield.