COVID 19 Has Caused a Housing Shortage—Profit with Ensuite HMOS & Social Housing
It is rather obvious that Covid 19 has caused and will cause great damage in the housing sector. There are people that will lose their homes. Currently many are living in their rental or mortgaged properties without payment. However at some point, they will have to pay the fiddler.
However us as property investors can benefit from this terrible situation. In our opinion there are 2 options and both of these options we are employing capital. First and foremost is social housing. This is housing backed by the council for homelessness, domestic violence or covid 19. As well as we enter into 5 and 7 year contracts for an unique subset of social housing that is govt backed. There are no voids, no management and maintanence covered up to 5,000 per year as long as not structural. Both of these one does not have to worry about being paid by potentially non working tenants who refuse to pay rent and can not be evicted.
Secondly are HMOs with ensuites to working tenants. However you still might run into issues when tenants do not pay. That is why we focus on the Social Housing.
Historically Low Housing Supply
New construction down
We are also seeing delays in financing, which also causes projects to slow down.
Repossessions delayed and slowed down.
Evictions and foreclosures paused
Many rehabs were either halted or slowed down the last 6 months, as well. Similar to new construction slow-downs, rehab crews were not moving at their normal pace due to the many restrictions put in place. We kept our teams cracking as we have been under time requirements to supply more properties.
The Bottom Line
More so what we see is and it is clear that property prices will shift upwards at some point even greater. It’s been a crazy year! But you do not have to sit on the sidelines of investing if you use the market to your advantage. Try out some of the above tips. I hope you find them helpful!