Property Investors Succeeding During the Covid Crisis
I’m going to let you in on a little secret …
Some savy flip property investors like us aren’t just surviving during this pandemic…
They are THRIVING.
How is this possible?
Everyone thinks the world is going to end. The worst crisis since 1700 and whatever! Investors think they can pick up garage sale bargains easily….
Alot of doom and gloom.
Basic economics is supply and demand. The UK is an Island that was already in a housing crisis. Covid has just made the situation worse. What seems to be happening is that demand has fallen yet supply has probably fallen even more. However there is alot of pent up demand. The housing market did not cause this economic event. All the leverage and Covid but not supply. When one has luxury HMO en suites, they rent very quickly. When one has nice quality buy to lets they rent quickly. There is less supply. At least in the USA as I read those articles, mortgage applications have increased. This means more buyers. We had one Buy to let in which we just finished before the lockdown and could not have viewings. From Monday we had 25 viewings. The same with property flips. So many calls.
We have had 1 (maybe 2) buyers back out of our social HMOs with guranteed rents for 10 years, no voids and no management. The first buyer lost a great deal of money in the stock market & backed out. ( Lesson learned–Real assets like cash flowing properties are safer). The second buyer dragged us along and late last night wanted a 20% decrease in price in which we kindly told her that by Monday we are asking our solicitors to ask for contracts back. However we have never been busier. We are speaking to so many interested investors from Hong Kong at the moment. Where else can they get a Govt backed contract on properties for 10 years with no voids, no management and virtually no maintenance at above NET 9%. It does not exist and there is limited supply and as well all know now, sadly a great deal of need for social housing. There are countless cases of domestic violence and social ills. All of these need safe and secure housing. The local councils and Home office have stepped up the plate.
Jump in, buy right, dont miss the oppurtunities in the property market