Every dog has his (or her) day

But does that day have to be in court I wonder? For that is where I found myself a couple of week's ago, representing my company, Best Nest Ltd, in a boundary wall dispute with a neighbour who has refused to move the fence he erected on our land. He did it before we bought the property and since our purchase we have been negotiating with him about moving it. He has resolutely refused, stating that the fence line is representative of the party wall line, even though it is clearly not perpendicular to the brickwork which defines the meeting of the two properties, since they are terraced (and therefore conjoined). The fence is not even straight, so how this can represent the party wall line, and thus the boundary, baffles me.

After many months of rather terse interchanges, letters, emails, solicitors letters, costs, time and annoyance, I found myself in court, trying to resolve the dispute in as courteous, and professional a manner as is possible. The other side (the party for the de-fence (so true)) had written a so-called Tomlin order - in other words a fancy name for a consent order. One look at it told me it was skewed in their favour and meant we would face further costs, legal wrangles and pulling out of hair for the next few months if we did not agree in some way to their demands.

So, hugely reluctantly (and if you know me, you know I quite like a fight, particularly when the other party is so OBVIOUSLY wrong) we decided to accept the terms of the consent order, effectively allowing the other party to keep their fence where it was, and build our extension round it.  Not, in my mind, a satisfactory or pleasing conclusion at all. Nevertheless, this was where we had got to, and our solicitors were already booking their escape to the Maldives for Christmas on the basis of this battle alone. Next year, it will be a Christmas staycation for them if I have anything to do with it. Which is why I self-represented.

Walking into the imposing and domineering courtroom, I was nervous, but resigned to the outcome. Regretting ever having started this challenge, and wondering whether the law would uphold fairness and justice in this private conflict between two parties. But HOORAH, HOORAY! The judge, he with hair as white and fluffy as any nativity sheep, also saw the injustice and imbalance in the order and effectively threw it out of court!

He ordered the parties (let me tell you I was already ready with the party poppers) to adjourn and discuss further. After 20 minutes we returned to the courtroom with some amended suggestions as to the timescale for further negotiation. The judge said that if we did not resolve this independently before a certain time, he would close the case. Now, you might be thinking, why would I be pleased about that? Having spent significant money on legal fees, the fence is still in situ and the extension is still not built. Well, what happened in court was that effectively a precedent was set. In throwing out the consent order, which would have allowed the party for the defence to keep the fence on our land in perpetuity without any further legal challenge from us, the judge denied the other party the automatic right to keep his fence on our land. So unless the other party proves that it is his land, we now have the right to take it back and build the extension!

Let building commence!

Water, water everywhere!

So it's day 3 in the Big Brother household and we see the housemates all trying to sort out who's going first in the shower .....

Well we don't want that do we? So what do we need to do to avoid that from happening fellow property developers? That's right - plan, measure, execute! Ensure that all the showers, baths, taps and other water outlets will be able to be on simultaneously and fully without so much as a drip of a loss of pressure. THAT is perfection in the world of plumbing. One that can only be a property developer's dream, executing the perfect pressure and flow to allow all inhabitants of any accommodation block equal access to water at any time of day or night.

So today was the day of the water pressure discussion. It has to happen in each and every development ever done. In fact, ignoring or avoiding THE waterworks discussion can, just as at the doctors, make you feel you as if a vitally important detail in your overall examination has been missed.

When researching water pressure (and by the way only water pressure geeks will truly be able to relate to the power of the pressure here) you need to find useful and reliable websites to guide and teach you. One I came across today was this one: http://inspectapedia.com/water/Water_Pressure_Measure.php

A SUPER helpful website with what looked to me like questions taken from my 'O' level maths exam.
For example (and I quote):

"Example of variation in building water pressure:

• Incoming building water pressure is 80 psi at the street-side of the pressure regulator.
• The pressure regulator is set to 60 psi and installed on 1/2" diameter building water supply piping
• The building has four apartments and in each apartment simultaneously people are running multiple plumbing fixtures, drawing water out of the system so fast that ...
• The dynamic building water pressure drops to 20 psi when all of these fixtures are operating. Even though the pressure regulator is set to 60 psi, when water flow in the building exceeds the capacity of the incoming water main to deliver water at that pressure, the in-building water pressure will drop to a lower number." 

QUESTION: If Mary has a shower in apartment 2, and Tom in apartment 3 is making a cup of tea, whilst Frank from apartment 5 is washing his car,  what will the water pressure be for Jane when she comes back from work and wants to have a bath?  And what is the solution to her low pressure problem? 

 (That'll keep you guessing my friends ... the answer is at the end of this section). 

Yes, the world of water pressure creates questions like this in many of the great plumbing minds of this industry. And that is why a water pressure (and flow, mustn't leave old flow out) measurement needs to take place early on in your development master plan. We are having ours officially measured in two day's time. And hopefully it will be good enough to pass our ordinary level property developers exam. 

PS the answer is A solution to this problem may be the installation of 

a WATER PRESSURE BOOSTER PUMP.

I'm back!

After a few months of feverish productivity and a number of HMO projects under my belt, we have some exciting news about our latest development. Over the last couple of years my writing to my blog has been much less frequent due to all this business or should that say busy-ness? However, today, although it is no particularly notable date I have decided to resurrect my writing and let you in to a little project secret - we are starting on a commercial conversion! This is our first commercial conversion of an office block to a block of 6 x 1-bed flats in the centre of Hanley, Stoke-on-Trent.

The building is about 2,100 sq feet and was previously used as an office. We are working with a couple of other investors on the project and together using our combined skills, knowledge and expertise to create a fantastic new block of accommodation in Stoke-on-Trent. So far, we have the building, we have planning permission and we have a builder lined up. But we need more money! So funding the project and getting into the nitty gritty of the building project plan is our next step. This is our first Joint Venture with our new partners and one of the key aspects of our partnership is going to be agreeing roles and responsibilities. I think it's always a good sign when there's plenty of regular communication and dialogue from the start, which we have had from our JV partners - even on a Friday night after a few bevvies (him not us)! One of the most exciting yet nervewracking aspects of a new project is that there is always masses of learning from the start. Although you don't know what you don't know, I have found that nothing is unrecoverable, and actually most learning is wonderfully applicable in the future. So this will enable us to do bigger and more expansive (yes I did write expANsive not expENsive)  projects later. Commercial conversions, here we come!

Generation rent

[This article was written in January 2015]
Over the last few weeks, my DH and I have spent many happy hours discussing the state of the UK economy and the world economy (as you can tell we live exciting lives). These discussions have tended to take place over a leisurely Sunday breakfast when we are padding around in our pyjamas. Over a smooth cup of freshly brewed coffee it makes for a relaxing yet stimulating start to the week!

Although neither of us has studied economics to any great depth, we both have a good grasp of certain key economic theories which I think has helped make our investment journey a more confident one. I would definitely advise anyone involved in property investing to study the 'Big Picture' and understand what the economic risks and opportunities are within the world today.

One discussion we  recently had was around what is often termed 'Generation Rent' - i.e. people who are unable to afford to buy their own property and therefore can only and possibly will only ever rent. [The phrase has also given rise to an active movement lobbying for more legislation to support tenants http://www.generationrent.org/]. However, I would like to widen the definition of this phrase to demonstrate that to a lesser or greater extent we are all generation rent - unless we take definitive action to change that status.

I still work one morning a week at the local University, which I regard as interesting, fun, and informative. I enjoy teaching and love the contact with students and I am passionate about my subject area (Early Years). So it is rather nice to find that also once a month I get a payslip and an accompanying deposit into my bank account. Aren't I being rented once a week by the University? And my car is on a PLP plan  (personal lease plan) that means I don't own it, but I can drive it nonetheless as if it were mine. And many of our buy-to-let mortgages are interest-only which means we are effectively leasing the properties to rent out to other people (the only additional benefit is that we get to keep any capital growth).

There are many benefits to renting. You don't have to take full responsibility for the capital item if it goes wrong or needs certain repairs. If you want an upgrade, its fairly easy to transact (yes you may have to pay more per month but that's the price of improvement). You can plan your finances much more easily and with certainty. There are a lot of benefits to renting. However, many people feel fearful and powerless when renting, They feel that they have few rights and no options. This is simply not true, particularly when it comes to housing. Let's face it, if you are in a job, you yourself are being rented by your employer! If you can use the situation to your advantage, I can see that being rented and being a renter may actually end up being a pretty savvy way to financial freedom!

The Cinderella effect

Me at the end of a long day 

Ever felt that you were slogging your guts out to no avail? Ever wondered where all those hours went sorting out other people's problems, keeping a watchful eye over your expenses, or bringing up children? The way you use your time TODAY has a massive influence on how you live your life TOMORROW.  As a property investor I have had more times than I care to admit to when I have had to spend time doing things I really did not want to do but knew that NO-ONE else was gonna do them!

Whether that's been arranging a mortgage, sorting out renovations or advertising for tenants. I have painted properties, lifted carpets, cleared out mess, moved bins, called endless tradesmen, managed money, worked with tenants, sorted out paperwork, and done many more other glamorous activities!

Oh yes,  I have at times got my hands VERY dirty. As time has progressed though, I have been able to be much more hands-off by using other people's skills and expertise. I now have a *wonderful* mortgage broker, who is just so cool! I call him and tell him what I want, and low and behold a few hours or even minutes later, he comes back to me with the best possible options for the property I want to buy.

I now also have a team of builders and tradesmen I can call on for specific jobs. I use an agency for some aspects of lettings (I am still holding onto this part for dear life)!! I have a brilliant accountant who tells me each month what my profit and loss is, so that I can plan for cashflow and further investments. Recently I have even met a couple of people who might start to source property for me, so that I can focus on building my property business! WOOO!

At the end of a long, hard week, I do sometimes wonder where the time has gone. Balancing this business with family needs, volunteering commitments and some leisure and exercise time is not easy. However, I came across a great quote from Joshua Kennon http://www.joshuakennon.com/  that made me realise that the small, seemingly insignificant things I do on a daily basis are building my future.

Everyone thinks life is one upward, smooth trajectory.  They think of Cinderella in her big castle and forget that she spent decades scrubbing floors, being beaten, and locked in a cold room.  Between “Once upon a time” and “Happily ever after” a lot happens.  Not all of it is good.

- Joshua Kennon

Real research

I have been asked recently where you can find information on an area when undertaking 'desk research' for your goldmine (or potential) goldmine area!

So here are a few ideas:

Checkmyarea paints a fairly accurate financial picture across different social groups.

Fix my street which is a somewhat hilarious and useful tool for seeing the problems as neighbours perceive them!

Stats-wise Neighbourhood Statistics takes some beating but to get the most from it you'll need to get familiar with undertanding the nitty-gritty and finding the most appropriate datasets down to LSOA level (Lower Layer Super Output Area). Some datasets are as far as a census behind whereas others are very recent.

Walkscore gives an area a rating on how 'walkable' it is - useful if you have no access to a car or there is limited public transport. My town gets a 'thumbs up' and is described as 'very walkable'! 

If you have come across other useful sites that give 'insider info' about what it's really like to live there, please do get in touch!

Tasty morsels

Although I was only a 'B' grade maths student at school (mainly due to algebra and geometry) I think had we studies statistics more I would have definitely got an 'A'. I think statistics are very interesting actually (8 out of ten property investors say they find this too). Particularly when those stats have an impact on the numbers in your bank account. Which is always the bottom line.

So, I was pleased today when into my inbox dropped a plump survey carried out by Mortgages for Business (savvy lot they are). This one, focusing on the behaviours and intentions of the property investor. Not the tenant (as per my previous post).

I liked the report because as well as words, it included pie. And as I read it at a time when I was feeling particularly peckish,  the idea of consuming pie while learning something appealed quite strongly to me. Also I like the fact that they refer to Vanilla quite a lot, which is one of my favourite flavours. I suspect the person writing this report was either a) on their lunch break when they wrote it or b) about to go on their lunch break and visualising the menu: 'steak and kidney pie and ice cream for pudding'.

Follow the link above and see if you can find any more foodie words embedded in the report. It will only make you hungry for more ...

What do tenants want?..

I came across this fascinating study carried out In September 2012 and thought I'd share the information with you! it is always useful to understand your market more!

(http://www.finders.co.uk/news/2013/01/what-do-tenants-want/) 

Here is the article:

Context: Ages & Segments

The 600 respondents skewed towards the younger age brackets: 42% were below 30 years old and 75% under 40 years old. About 9% were over 50 years old and a further 3% over 60 years old. We have to assume this is a typical breakdown of those in rental accommodation although a research bias may be at work, eg younger people might be more willing to complete an online survey.

57% of the survey defined themselves as living alone or with a partner, 22% were families and the rest were a mix of sharers, post-graduates and corporate tenants.

The big question: Are you a “reluctant renter”?

The results are fascinating: 40% of the survey said ‘yes’ and 60% said ‘no’. However, as with most research, the headline answer is misleading. We asked why people are renting reluctantly and found that 35% of them (so that’s 35% of the 40% who are reluctant, which is 14% of the total sample) are more ‘frustrated buyers’ than ‘reluctant renters’ as they are waiting for the market to fall, in the process of buying a house or ready to buy but unable to find the right property (Figure 1). The latter reason may be indicative of the relatively strong sales market in Oxfordshire.

The remaining 65% of the 40% (or 26% of the total sample) are those ‘reluctant’ people you might have been reading about in the press. They tend to be saving for a mortgage deposit or struggling to agree a mortgage. Mortgage lending criteria have changed dramatically in the recession and now it is the younger, first-time buyers who are feeling the effect.

 

 

Why are 60% of the survey happy to rent?

The main reasons being that they like the freedom to move; they are not ready to buy; or they are getting to know the area. Interestingly, 22% of this 60% say they can live in a better property by renting than by buying a home, which could be a reflection of both the increased standards of furnishing and the fact that sales prices are still beyond many people.

What do you look for in a property?

We are firm believers that good furnishing attracts the best tenants, but even we are surprised that ‘Lowest rent possible’ only comes 5th in priority (Figure 2) and that the cleanliness and quality of the interior is more important. Even though many tenants are saving for a deposit, they still want to live in a clean, comfortable and stylish home. This supports the long term trend of the past 15 years of ever-increasing aesthetic expectations among tenants. The answers about gardens and schools may be reflective of the relatively young age of the respondents. The low score on ‘nightlife’ is ominous for Oxfordshire’s leisure industry!

 

 

Would you like a long tenancy?

Some stakeholders (eg think tanks, charities) in the rental industry are advocating long, European-style tenancies of 5+ years, but our survey does not support this. Only 6% of respondents want a tenancy agreement beyond 3 years and 80% want an agreement between 6 and 18 months. It could be that we are really a nation of homeowners – or aspiring homeowners – and so a 5-year tenancy is not part of enough people’s goals.

What would make you stay in the rental sector longer?

It makes sense that ‘Investing to keep the property in good order’ and ‘Swift repairs’ are the most popular answers (Figure 3) as these directly affect the quality of life in the property. The desire to personalise the home is understandable but a very difficult area as individual tastes can negatively affect the re-letting of a property. Any ‘personalisation’ must be agreed in detail and in writing between tenant and landlord. The option to ‘Rent to buy’ (where the rent goes towards a potential purchase) will suit a minority of landlords and a formal contract is required.

 

 

Court fees... going UP!

Just thought you might be interested to know that IF you are going to be taking one of your lovely tenants to court, the fees are increasing!

According to Tessa Shepperson of Landlord Law:

"The court fee for eviction proceedings for example will go up from £175 to £280 and the PCOL fee (the possession claims online service used for rent arrears claims only) will go up to £250. 

 

Other changes are:

 

• the introduction of a generic issue fee (£280) for all non-money cases across the civil court system
• increases to issue fees for money claims with a value of over £1,500
• the removal of the fees to submit a directions questionnaire and listing fees – the cost of these processes are now included in the issue fee and the hearing fee
• increases in small claims track hearing fees
• the introduction of the same general application fees across the civil court system, including family proceedings
• increases to fees charged in judicial review proceedings from £60 to £140 for an application for permission and from £215 to £700 for a hearing or oral renewal application

I understand that the enforcement fees are currently unchanged but that they will be undergoing a separate review.

If you are thinking about bringing legal proceedings you may want to consider starting them now so as to avoid the fee increases.  Although I expect a lot of people will be doing this which will probably put a lot of strain on the courts and may result in delays."


If you want to know more, read this report.

Planning to reach your financial goals?

It is not really the done thing in the blogging community to post other people's blogs (and NEVER done without fully acknowledging their work)! But as I follow The Kiyosaki's every move - well almost - I was catching up on some of their writings and found this excellent article. So it is reproduced here for your delectation, education and enjoyment!

"As the clock strikes 12 ringing 2014, amongst all the celebration there is inevitable chatter about New Year’s resolutions. We are now almost to the end of January and that vigor and excitement about the changes you’ll make in the New Year are fading. But why? Change is hard, harder than we really give it credit for. If all it took was a little will power we wouldn’t keep making the same resolutions year after year. This week check in with your financial goals because total wellness should be physical, mental, spiritual, and financial. By now your credit card bills have arrived and the reality of the holiday shopping extravaganza are hitting. Don’t despair, with some good planning and self reflection next year this time could more satisfying.

It all starts with getting back to the basics of Robert Kiyosaki’s Rich Dad Poor Dad. Do you know what your balance sheet looks like? As you get your taxes ready to file, it’s a great time to be looking at the past year and taking stock of all your assets and liabilities. As you probably already realize your financial goals for 2014 should include steps to decrease your liabilities and increase your assets.

Let’s start with liabilities. Look at all the cash going out on a monthly basis and assess which one’s you are over paying, duplicating, or unnecessary. Start looking at other providers that can offer you lower rates. In many areas, cable, internet, and phone services have a lot of competition. Before you decide to change to that other company’s lower introductory rate, call your current company’s customer retention department and offer them the opportunity to keep you as a customer by lowering your bill. Beware of their offer to give you more for your money. Remember your goal is to lower your liabilities not get more doodads. If they refuse, schedule to have your service shut off. You’d be surprised how they change their tune. Please remember to be nice. This isn’t about being a hard negotiator or being rude. You’ll get farther by simple stating the facts and explaining that you’d like to be loyal. I’ve been able to cut my cost by almost 50% by using this method. Also, look into different electric and gas providers. Many people don’t realize you have some choices that can save you money.

Now that you are starting to save money on some of your household expense, don’t turn around and buy more doodads. Take that monthly savings and work towards putting it into assets. Starting out you may not be able to buy that asset that throws off enough passive income to cover your expenses, but start small. Looking into investment opportunities that don’t necessarily require a lot of money like wholesaling real estate, buying mobile homes, or investing in tax liens may be a good starting point. Also, don’t forget the difference between good debt and bad debt. Good debt is debt someone else pays for you. Start looking at what kinds of credit you can use to invest. Those checks that your credit card companies send can often be used to purchase small deals. No credit left? Look for my future blog about strategies for paying off those doodads to free up your credit for investing. Look at your bank for lines of credit. The banking industry is highly competitive, so talk to several and see who can offer you the most bank for your buck.

Be specific about how much savings you are looking to achieve on your liabilities this year and how much you will gain in assets. Without a clear goal there is nothing to work towards. If you find yourself off track it’s time to step back and ask yourself why. Often times it is deeply rooted in old beliefs. Are you creating rules that are holding you back based on past experiences? For example, you might feel like you will miss out if you don’t have ALL the cable channels. Why not just try it out? Do a little test and block all your premium cable channels for 1 week. If you can’t find something on TV that is entertaining to you, use that time to do something else that will advance you toward buying your next asset. Research some areas that might be up and coming for your next real estate venture. You just might discover that your success is much more satisfying than a million cable channels.

If all else fails, get help. This is exactly where coaches can be helpful. There are many different specialized types of coaching out there, so do your research and find out what type of coaching might be right for your situation. The most successful people all have mentors and coaches who help them when they get stuck. You’d be surprised what you uncover when someone helps you create distance from your situation allowing you to get a new perspective. We almost always find that the biggest hindrance to reaching our goals is in our own head.

With all this being said, leave room to forgive yourself for your failures. Sometimes we get so wrapped up in our mistakes it stops us from even trying. You are far too important to neglect. Instead of making your New Year’s Resolution something just fun to discuss, make it an important part of the business of you. Lastly, don’t forget change is uncomfortable and if you aren’t challenging yourself you aren’t going to achieve your goals. Learn to love discomfort like a scary movie or a thrilling roller coaster ride. Wishing you a happy, healthy, and financially rewarding New Year."

Taken from: http://blog.richdadeducation.com/2014/01/28/planning-to-reach-your-financial-goals/

Section 21 help

Anyone who has had to evict a tenant will know the sheer pain and heartache that can go with the territory - making sure you fill in the form correctly, making sure your dates are correct, wondering if you'll ever get any rent ever again ... and other such positive thoughts.

I came across this website recently to help ease the suffering (of landlords I mean!) to help you if you are using Section 21 of the Housing Act to evict a tenant:

http://www.nationalpropertygroup.co.uk/SECTION21CALCULATOR.asp


I am going through a Section 8 process with one of my tenants - and that is not particularly pretty either ; (

You do need guts of steel and a heart of gold to be a good landlord. I try and be fair, reasonable and helpful but it is sad when tenants behave in ways that put other people's wellbeing at stake. So unfortunately this tenant has to leave.

It's gonna take money, a whole lot of spending money

This morning whilst I was in the car I was listening to George Harrison's song 'I've got my mind set on you'. It made me think how apt this song is if you are developing a high-end HMO! You certainly DO need your mind set on it if you're gonna do it right!

A tale of sweet teeth

When I was a child in the mid seventies, I remember being given 5p a day to buy sweets from the corner shop on my way home from school. And oh the choice was overwhelming! A packet of Spangles or Chewits? 2oz of Rhubarb and custard or a handful of blackjacks? If I saved up for a couple of days I could even afford a whole pack of Opal Fruits (remember them) or a Texan bar! The stressful existence of an eight year old consisted of these tough daily decisions which I must say I handled with aplomb and mastery. Unfortunately for me, my dentist has since been able to retire early to Florida because of all those personal challenges I faced in Cecil Road's sweet shop.

Now, you can't even buy half-penny chews. The 1/2p coin was taken out of circulation in 1984 because it was worthless. Soon I expect pennies will be history and 2ps - well! Those large circular brownish and oft terribly grubby tender will no doubt soon be relegated to the pages of Wikipedia history.

And why? All because of that nasty invisible force that we struggle to control (no not self discipline at the sweet counter) - INFLATION. Remember what 10p bought you 40 years ago (ok 20 or even ten if you insist on reminding me how young you are to my aged experience). Prices have risen, costs have increased = all because the pound is not worth today what it was a few years ago.

Recent discussions about UK debt and rising house prices all highlight the tremendous amount of public (and personal) debt that we as a nation now owe. (http://www.debtbombshell.com/ , http://www.ukpublicspending.co.uk/uk_national_debt_chart.html)

However, there is less discussion about the underlying rate of inflation, and the effects of QE which are bound at some point to filter through (even if right now much of that money is being held in banks to capitalise their assets).  For those of us involved in property, understanding the effects of inflation long term are significant. In fact they are mind blowing!

I went to a property investing seminar recently which examined the long term effects of inflation on house prices and mortgages, and the powerful correlation between holding property long term, and having debt secured against it (i.e. in the form of a mortgage).  So, just as you can no longer buy a 10p packet of chews, you can no longer buy an average property in the UK for £100,000. In fact, in 1984 if you bought a property for £100,000 it would now be worth a staggering £272,000. It would have grown by 2.5 times (and that's calculated simply on inflation figures - it does not take into count the overall market effects).

What if you had taken out an interest-only mortgage of say £90,000 then? Well, you would have paid monthly amounts to maintain the interest payments, but in comparison to the value of the house, the debt would now be 33% of the value of the property as opposed to 90% of the value as it was then. Give it some more time and 90k will be an average annual salary - it wont seem like the mind-bending sum of money it felt like when the mortgage was taken out in 1984.

Interestingly, house prices rise despite inflation, and the following graph shows REAL house price growth with the effects of inflation removed:

But although the value has risen, the debt has remained constant. And of course, over time, the debt effectively loses value (George Osborne knows this and is keeping very quiet about it). The fear is that as inflation rises, so too does interest rates. THAT's another story for another time.

The conclusion is, had I stockpiled my penny chews and perhaps taken out a small loan from a willing joint venture partner to fund the undertaking, not only could I have made a small fortune from the rising price of vintage confectionery, I could have profited handsomely because of the inflation on the debt reducing year by year.

And how might I spend that money? Well, just ask my dentist (when I saw his fees I did think I'd chosen the wrong profession).

That's what I call SWEET!

A VERY useful list of websites

A few weeks ago I posted the beginnings of a list of useful websites ... (and no, I don't mean Next Directory or Facebook)...I'm talking about property related ones. The very forward-thinking guys at Progressive Property have done me a great favour and produced a list of their own which I have reproduced here for your reading pleasure!

Sold Prices
Simply enter a post-code in the above & see what properties sold and for what, and you can even narrow the search by house age, style and see a map.
www.nethouseprices.com

Similar to the above, but instead gives coloured-coded Google maps which highlights the streets that fetch the most. Great for 'getting the spread' & finding cheap properties on good streets.
www.houseprices.co.uk

Most on-line portals go back as far as 2000-ish but Ourproperty stretches back to 1995. It's free but you need to register.
www.ourproperty.co.uk

Match Sold Prices to Property Ads

Zoopla's powerful tool matches up sold prices with old property ads, including photos, description & asking prices. Hit the Values section, search for an area & click the red H's for historic listings.
www.zoopla.co.uk

Search for a price comp report on RM to see sold prices & details of how many beds. You may be able to unearth the full listings by Googling the road name, as many sites scrape RM's data & leave it up for years.
www.rightmove.com

Want to get an overview of your goldmine area?
The following tools will help show you how many properties are changing hands in your area & how much for.
Land registry [LR]
LR collects official house price data on real sales, recording every residence sold. It's HPI gives average prices by country & region, breaking them down into different property types. Be careful as the data is three months out of date, but a very useful tool.
You can download national and regional price data for different property types since 1952, as well as more detailed analysis.

Ballpark house price valuations
There are several free online tools to value a property. Mark says they can be a long way off; for official valuations, speak with agents & use LR sold prices.
Zoopla – for a bespoke valuation Type in a post-code & it will give you a rough indication of sales prices for that area. Select a property in a street & get a bespoke online valuation based on previous sales & market climate.

For a more detailed second opinion Slightly quicker & easier to work through & asks fewer questions. You can get an upper & lower valuation for a given property, but Mark say's PPA is more likely to over-value properties.
www.propertypriceadvice.co.uk

Want an estimated price range? This simply asks for your postcode & no of bedrooms so it is hardly a conclusive study! A nice addition is Google Earth snap of the property. You can pay for a detailed valuation, but as the accuracy is still questionable, stick with the freebies!
www.mouseprice.com

Nationwide – Find a home's value based on its sale price This tool is designed for people to put in their property's price when they bought it & work out what it's worth now. This tool is useful in it can give an idea of how house price fluctuations affect value. BTW Mark says "Take the results with a shovel of salt. Don't just rely on the figures given – treat it as a fun investigation, nothing more."
www.nationwide.co.uk

Monitor house price trends
Housepricecrash -Get a feel on housing market forecasts
Check out what the pundits predict. This site has a pro-property agenda. It collects stats from LR, the Financial Times & Hometrack to number crunch house price trends.

Find local asking prices
Rightmove [RM]
The godfather of home sites -RM is the best place to compare homes on the market. With a plethora of props up for grabs, it plots listings on Google map for ease 

For best results, turbo charge RM with Property-bee, which is an ingenious Firefox add-on, [on steroids] to see how sellers have altered listings & dropped prices.

This site includes reams of data alongside the listings, including how the asking price compares with others in the town & postcode.
A great way to compare gross yields. It also allows you to click on homes' 'price histories' to see how the asking price has shifted.
www.home.co.uk

Monitor house prices on the go
Rightmove
Iphone App This uses GPS technology to pinpoint houses for sale & even where you are standing. Click 'get my current location' & it shows a list of pads up for grabs! Finding the spread just got easier 
Search Rightmove in an APP search

Uncover Rightmove ads' secret histories
This free add on for web browser Firefox is super-fast! It works with property listings on RM to show you how sellers alter their listings, crucially, price cuts. It allows you to see when the seller put the property up for sale; each time they cut the price & by how much; & if it was taken off the market & put back on. These are all useful bargaining chips in purchase negotiations.
www.property-bee.com

Monitor dropped asking prices
This shows which properties in an area have recently dropped their asking prices & by how much. Simply type in a postcode to see who's have having trouble offloading their house & what percentage they've trimmed the price by.
www.propertysnake.co.uk

Look for repo'd properties
Ei Group
It is very possible to pick up a repo or distressed-sale properties at up to 30% below market value. For those willing to put in the work on research & repairs, these can most certainly, represent some of the best buys on the market.
 

PINs and needles

The other night I attended our local PIN meeting where we listened to an inspiring presentation by Kevin Wright. He was illuminating the benefits and strategies of using bridging finance to develop properties. It was all fascinating and mind-blowing as is quite usual at PIN meetings, where you learn of the amazing and incredible stories of other people and their achievements with property.

Something I can only hope to emulate in time...

I can't believe it is over a month since I wrote the above paragraph! Since then I have attended another PIN meeting when some equally inspiring stories were told. It has made me reflect that much of the success in developing property comes when you have mind over matter - that is to say, if you don't mind, it don't matter.

Of course saying to yourself 'it don't matter' is not easy when you are down to your last tenner, cos all of your hard earned cash is flowing into the latest property project. Nor is it easy to say 'it don't matter' when you have a sudden turnaround in tenants; or when you've been so busy dealing with the day to day that you've lost an eye on the bigger picture. And yes all of the above has happened to me!

I love the quote that Rob Moore (founder of Progressive Property) uses in his book 'Multiple Streams of Property Income' : "You have to work hard to get rich enough not to have to work hard" (Richard Templar)

I sat down last night and re-wrote my goals for 2014 with regard to property development. If I am going to achieve them (some were pretty stretching let me tell you) I know I am going to have to have 'mind over matter'! For me, that is 80% of the work of property investing. Having a mindset that enables you to look above the day to day disasters, problems and issues and know that in the long run, you will be building something of worth, something that brings a residual income and ultimately freedom. Of course, it also means working really hard - but for a short sustained burst of time. Once I have reached my first goal (that is to enable both myself and my DH to be free from the need for external employment) then I will ease up a bit - well for a while anyway.

So the formula seems to include 1) HARD WORK FOR A PERIOD OF TIME, 2) KEEP FOCUSED ON YOUR GOALS 3) PERSIST EVEN WHEN YOU WANT TO GIVE UP 4) NEVER GIVE UP.

And if that IS the magic formula, only one of them relates to what you DO - the other four are all about what you THINK.

But it feels like walking on PINS and NEEDLES sometimes...

Standing on the shoulders of giants

please don't lego me just yet ...

Just noticed on one of my weekly property internet trawls that Direct Line have launched a 'Landlord Knowledge Centre'. Having clicked through to it, there are a number of options from which to choose such as 'rental trends'; 'staying in control' and 'maximising income'. Yup, interesting and useful AND quite wide-ranging too. So far, so good.

The two articles I have downloaded are written by the same woman, Kate Faulkner, who seems to know her stuff on property, except that in her article 'Invest Alone or via a Property Investment Company' she states

'BEWARE
- ‘Below market value’ deals rarely stack up
- Many strategies are not tried and tested under the law
- Some might even be considered mortgage fraud'

yet in her article 'Where do you find BMV deals?' she concludes with a list of suggestions as to HOW to find and BUY BMV deals :

'• Be prepared to dedicate time to finding BMVs
• Build a good local network of property professionals to secure below market value ‘leads’
• Set up a system so you can analyse quickly whether a property will ‘stack up’ as an investment
• Always be respectful of people’s circumstances – they’re only selling at a discount because they HAVE to
• Be ethical – don’t take excessive advantage
• Never buy without a good RICS surveyor who will work with you'

So Ms Faulkner, which is it? I must admit, I sense a dilemma for Direct Line here! They want to reach out to the property investor who is prepared to use creative and unusual (and TOTALLY LEGAL) strategies to help sellers. But they also want to make the inexperienced investor highly wary and fearful of this way of doing business using an unknown company through which to get the deals.

The problem is, there are lots of different views out there about risk. Only YOU can decide what kinds of risk you are prepared to take, with how much of your own money, using strategies that you are willing to implement. Getting direct advice is always a good idea when it comes to property, but think about WHO is giving it to you. WHAT is their motivation, and HOW their approach has influenced them. If you are not convinced by their experience, expertise or proof, and you feel that their approach will not achieve what you want, then AVOID.

Remember what Isaac Newton said 'If I have seen a little further it is by standing on the shoulders of Giants'. 

Stand on the shoulders of property giants - watch, read, listen learn. Take direct advice, but take it direct from someone you trust and whose experience and achievements speak for themselves. 

Property Investors Do It Diligently

When considering buying a house that's not in a place you know really well, it's important that you do what's called due diligence - checking out all the statistics, information and facts about the property before you take the plunge and buy it. As well as the usual external and internal housing checklists, you also need to find out a whole load of other details about the property such as facts about the local area, the rental market and certain housing statistics.

What are the local crime stats? What are other properties selling (or sold) for? What is a realistic rental income for the area? What are the local industries? What kind of tenants am I likely to find renting round here? (All these facts feed into the speed at which you'll rent the house, the amount you can charge, and the type of tenant you'll attract).

If you're planning on buying a property to rent to families, are there schools in the vicinity? If you want to rent to young commuters, are there good public transport options available locally? Finding out the answers to many of these questions takes a significant amount of research time, although desk research using the internet is pretty accurate and extremely easy. Sadly, the wonderfully named' UpMyStreet.co.uk' is no more ('UpYours.co.uk has replaced it).

So what are the tools to use if you need to carry out due diligence? I find that Google's streetview is invaluable when assessing the real look of a house from the outside. MOST of the UK seems to have been photographed now, except for the odd Welsh Methodist Chapel that has fallen into disrepair and is situated 3 miles up a dirt track atop a hill.

The benefit of streetview is that you are not seeing the property from an estate agent's rose-tinted camera lens, which is able to make even a 2-bed backstreet slum-like dive appear to have 'loads of character' and 'vintage qualities' on the details. Ironically those Methodist chapels really do have loads of character and vintage qualities. Just that they're too far up the vertical incline for the google cameraman to reach, and they are rarely on the open market as estate agents tend to send them straight to auction.

Zoopla is also a great website for researching sold house prices. A good way of comparing whether the asking price of the property you're interested in is realistic. And if you're interested (ok take that as a polite way of saying nosey) in finding out what local problems might be in that neck of the woods, try Fix My Street - a really delightfully amusing website at which you can while away the hours reading the plights and complaints of local residents. As an example of just how serious things have become in the town in which I live, the top two complaints in order of magnitude are listed as 'Pothole Hell' and 'Doggy Doo'.  Definitely first world problems.

Another site which claims to be 'the only site that helps with property planning to enable you plan your property purchase from end to end with all the relevant information sources in one convenient place' is Property Notepad. It lists many of the most useful websites you'll need, to find a property, assess its potential, and sort out your finances.

Of course there are MANY MORE sites too - let me know which ones you find the most useful and I'll post them here!

So duly do your diligence and you'll find that the results of your investigations will massively help you make the right decisions about property.

System addict

Man realising what his business has been missing

Do you remember that Five Star song 'System Addict'  from the eighties?! (Showing my age aren't I?) I used to think they were saying 'Systematic'. And it's this phrase that is now beginning to regularly run round my mind when I consider what I need to do to create a business that will work smoothly and cost-effectively.

If you look at any well-run business, there is a system in place. It may be hamburgers, clothes, cars or paint - whatever the product, if the business is to be successful, you must develop a system to ensure the fastest and most effective way of getting the product into the customers hands, and getting the customer's money into your hands!

Although property is not exactly a commodity, nor is it a product, I still consider what I'm doing to be developing a business. There is a transaction between myself and the tenants; there is a contract; there are responsibilities on either side. If I am professional, organised, law-abiding, ethical and also nice (a four-letter word not often used by tenants) then I know that I am presenting the business in the right way. After all, in sales you learn that 'people buy people first'. Right now, I am the face of my business. So I need tenants to 'buy me' first.

After that though, there needs to be a system to underpin all that I'm doing. Otherwise paperwork will get lost, deposits won't be filed on time and in the right place (the DPS) and I won't know when rents are due and tenancies have elapsed. Without these important pieces of information logged and routinised (is that a word?) I could easily miss vital actions such as chasing rent arrears or repaying deposits.

I am NOT someone who a) enjoys creating systems (nor is very good at it either - probably because I don't like it) and b) is very good at sticking to systems (it all seems so repetitive and frankly, dull). But I know that right now, just like cleaning my teeth twice a day, I have to develop workable and effective systems to make this business effective. So, Five Star - I doubt I'll ever be a SYSTEM ADDICT - but perhaps I can be a bit more SYSTEMATIC.

(Another helpful article can be found here: http://www.boxtheorygold.com/blog/bid/18628/Six-Qualities-of-Highly-Effective-Business-Systems)

Comparing estate agents in your area

A natty little piece of information that might save you quite a bit of time if you are trying to compare local estate agents, can be found on www.home.co.uk

If you go to the website you will see at the bottom of the front page a link that takes you to a
'Directory of Estate Agents'.

This link takes you to another page that allows you to search by local area, county and town. You will then be presented with a list of agents in your area. This is a search for agents in Crewe:

You can then click on any estate agent and it will give you an overview of the activity of that agent. In order to drill down even further, scroll down to the bottom of the individual estate agent's page and you will see a link to Estate Agent Portfolio Analysis for *name of estate agent. If you click on this link you will then be taken to a page full of wonderful charts and statistics about that estate agent. Here is one for Bridgfords in Crewe:

Estate Agent Portfolio Analysis for Bridgfords (Crewe) (full page)


This is a screen shot of the page (-by the way, this is only half the information as I had to do a screen shot and couldn't fit it all on the screen)!

 A VERY useful tool!

Five little words

There are certain phrases in life that carry significant meaning even if the words contained within them are very simple. 'That costs an arm and a leg!'.'Well, it's back to square one'. 'Hey it's a piece of cake'! 

All are phrases that I have used about property over the last few years no doubt. Particularly the first two. In fact I don't think I have ever used the last one except by way of referral to a literal piece of cake. Usually at the point when I had said the first two phrases rather too often for my liking. Which of course led to a cake eating incident to cheer myself up. 

However, I now have another deeply meaningful and suggestive phrase to add to my repertoire, and it's one that I am hoping to employ rather more frequently than I have in the past! The phrase was not difficult to learn, and in face it emerged from a FANTASTIC three day Property Mastermind Accelerator course I attended last week in Birmingham with Simon Zutshi.

The course was totally inspirational, motivational and conversational. I learned SO much new stuff about property investing that I'd only barely touched on before and now I'm fired up to start doing some much more lucrative and possibly less stressful (please God) deals in the future. I was introduced to a brilliant group of other like-minded people, who equally want to develop property to enable them to meet their goals. We laughed together, cried together and ate together, and when you've done that for three days with a group  of people you've never met before, it is amazing how deep connections are formed. There were some there who had no property investment experience, and others who had already done quite a lot with property in various ways. But we were all there to learn, and our enthusiasm meant that we maintained the energy and learning for the three solid (and fairly intensive) days. 

A really striking element of the three days was the level of discussion and support that we all gleaned from each other. Just talking with so many different people about their experiences and what they thought about what they'd done was so helpful and allowed me to put some of my doubts and weariness into perspective. Some had regrets - well we learned that there's no point having regrets, they just hold you back. Some had fear (False Expectations Appearing Real), and we learned that they were just that! Some had doubts about their ability to do anything, and again, these were addressed and dealt with. 

We were given some incredible tools to use to employ in our investing strategies and these were covered in as much depth as was needed to allow everyone to understand them fully before we moved on. There were some great examples of deals that people had done and the sheer ability of those in the room was staggering!

We did also eat rather too much cake, and thanks to Gregg from Cadbury's (aka Willy Wonka) far too much chocolate too. In fact when Simon first started writing on the flipchart as he turned his back on the audience, I was half expecting to see the word 'choclit' appear under the heading 'Cravings'. But then I remembered we were on a property course. 

You will definitely get used to eating dust if you are a property developer

I was amazed at the amount of information we received; the huge file of handouts and further information, the additional guest presentations and also the incredibly valuable contacts. But I think in the end it will be the simple yet hugely powerful five word phrase that we learnt, that might just turn out to be the most important aspect of the course. It was a phrase that Simon Zutshi himself embodies in his work and passion to teach others about property, and one which you can probably never use too often:

'How can I help you?' 

Because ultimately, property is not just about bricks and mortar, it's about people.