Peralia Properties

Regulation, Regulation, Regulation That could be one way to describe how the property landscape has changed for landlords since the Labour Government landed in July 2024, but it doesn't stop there. Landlords across the country face the dilemma of rising costs, new legislation, and market uncertainty, in effect creating a perfect storm. If you're a landlord you could be left wondering should I hold onto my properties or sell before it’s too late? If you're experiencing the top 3 below, selling might be the best option. Top 3 concerns from sellers right now. 1. Returns Shrinking Rising costs and taxes are eating into rental incomes and leaving you out of pocket, selling could free up capital to reinvest in more profitable opportunities. 2. Legislation Taking Over The pace of legislative change is leaving many landlords overwhelmed. The Renters’ Rights Bill could become law by this summer, and with all the new rules, it will make it even harder to manage your portfolio so selling now before it’s too late might be the best option. 3. Mortgage Costs – With rising costs and the added burden of Section 24, which reduces tax relief on mortgage interest, managing your mortgage payments, the single biggest cost, is becoming even harder. Selling now could help you avoid further financial strain. If you're interested in selling get in touch. I'm buying portfolios across the country and can pay up to market value or sometime even more. I find a win/win solutions for anyone wanting to sell. Do you know anyone like that?

Is It Time To Take The Leap? It’s important to leave your comfort zone if you want to grow. Would you agree? If so this post is for you, especially if you’re feeling comfortable, in which case you need to understand your limiting beliefs too. Let's take you to where the magic happens! I recently left the corporate world and started out in the word of property. It wasn’t a cold start we had some investment properties already, but to all intents a new start, and to do that I had to leave my comfort zone in a big way!  The fact is that growth requires discomfort. While comfort zones provide a reliable place to catch our breath, staying there keeps us stuck and prevents growth. As the saying goes, 'Life begins at the end of your comfort zone.' Getting out of your comfort zone means dealing with discomfort and fear. But pushing your boundaries makes you braver each time, allowing you to reprogram your mind and overcome those limiting beliefs. You can do it! Staying in your comfort zone won’t unlock your potential, it keeps you predictable and small. To achieve true success and happiness, you need to test the limits and live the life you want. Breaking out of your comfort zone isn't a one-time thing. You must make it a regular practice to see real change and growth in your life. So how do you make it happen? Simple - Here are four steps that can help you take the leap into a new future. 1. Learn as much as you can I used education, networked with experienced people, read books, found a mentor and got myself to the point where I was full of information because that gave me a sense of power. 2. Have a plan You need a plan before you leap, that needs clear goals and objectives and for you to identify challenges so you can plan to overcome them 3. Hold yourself accountable  It’s important to share your goals, declaring them will help you achieve them, honest! Then, given you’ve created a new network you need to look at them for support and to help you stay committed  4. Take consistent action and believe That commitment comes from consistency over a long period of time. Focus on your progress, celebrate the wins, learn from the failures but above all embrace the journey. If you take consistent action you will in effect be in continuous growth  _______________________________ I now buy property portfolios across the UK and am looking for investors that want to take the leap into property, secure their future and a great return on their investment. If you know someone like that drop me a line.

It's Blue Monday, apparently, so here is a little something to blow away those blues!

The Inevitable Has Happened - So What Now? Put your head in the sand? Postpone your investment dreams?  Take it in your stride?  Most macro factors like election results, global pandemics, and wars are entirely out of our control. That doesn't mean they can't impact us, but what's done is done, and we focus on the old mantra 'control the controllable'. Labour will likely raise taxes, and probably make investing in property even more challenging than it's been, with more regulation and maybe even some punitive measures aimed at 'levelling' the playing field. However the reality is that no matter what promises they make for house building, we will continue to have a major housing shortage in the UK and so for many years to come there will be an opportunity to make money from creating places for people to live/work/stay. If we look at history, any attempts by government to 'fix' this with rent control, or attacks on landlords, will only increase the 'opportunity' for those of us who roll up our sleeves and tackle whatever new challenges are introduced, whilst others flee the market for the next 'get rich quick' opportunity.  If you're looking for a get rich quick scheme then property was never the right option for you, but if you're looking to create sustainable, life changing, wealth, then bricks and mortar is as good an option today as it was yesterday. I am working with investors to buy portfolios at a discount and delivering them great returns either debt or equity. If you'd like to now more reach out, otherwise keep calm and carry on!

The answer to last weeks Monday morning teaser was of course Gary Player ("The more I work and practice, the luckier I seem to get") this week is for all you dreamers out there, which I hope is all of you. Who said this?

The 5C's for Finding an HMO An HMO can make an attractive investment choice for several reasons and not just profit related. Firstly, HMOs address housing shortages by maximising the use of existing housing stock. They also support modern hared living lifestyles offering affordability and a sense of community. This demand also makes an HMO a potentially high yield investment you should own in a diversified investment portfolio. Here are 5 simple steps to consider when you develop a House of Multiple Occupation (HMO) 1. Capacity – if it is a multi-let property then you want to be able to split your house into at least four letting rooms. If it is an HMO no smaller than 5 and no larger than 7 are recommended. Remember anything larger than 6 beds will require planning permission so if you're starting out you might want to focus on up to 6 beds which can be done with permitted development unless in an Article 4 2. City – you have three target markets (young professionals, students and benefit tenants). Student tenants can be a large risk these days as so many universities are building their own accommodation which is then newer and more modern and leaves your HMOs empty, so do you research carefully. Benefits tenants are the hardest work and with universal credit have made collecting payments far harder. If young professionals, then you need to ensure the city has enough young professionals working in the area that would want a property (see the check criteria). 3. Capital – buy with minimum population of 80,000 within five miles of the city centre (It is recommended that an HMO is actually within 1 mile of the city centre so that the tenants can walk into town (If student HMO then within 1 mile of the University or main university area). Finding an HMO near a hospital is also beneficial as it can ensure you generate the rental demand. 4. Cashflow – your profit from HMO comes from all rooms being occupied which is why the Check criteria is so valuable. Your property needs to make you at least a 10% return on capital employed. Of course, over time you can release equity back out and this improves. Must be a minimum of 10% at the start of the project. If you combine the HMO concept with a Buy, Refurbish, Refinance (BRR) strategy you can increase the return of capital considerably. 5. Check – run an advert on spareroom or other ‘room’ websites to check there is a demand for rooms of this type before buying. Look for at least ten replies in the first week before you consider moving forward. Ensure the advert is direct and clear at the tenant type (e.g. young professionals only). If you follow these simple steps you will improve your chances of a profitable entry into the HMO market and by working with the right industry professionals you can ensure success from the outset. INVESTMENT ALERT __________________ I am currently purchasing portfolios at a discount both HMO and BTL if you'd like a great return on your investment get in touch

It's 25th June and England have already qualified for the last 16 of the Euros as a result of Spain beating Albania 1-0 last night. But their game tonight against Slovenia will determine what position they qualify from the group in and then who they face in the knockout stage. So this week's poll is easy. Is it coming home? Or is it not?

Ever Wondered About Vendor Finance and How It Works? Well here is the 2 minute description. Vendor finance is a method in which the seller of a property provides financing to the buyer, usually instead of a traditional mortgage. In other words the vendor becomes the bank and you agree the lending terms between you. This becomes an option whenever there is a sale and the property is unencumbered, i.e. there is no mortgage to settle as part of the sale. Here's an example to illustrate where you agree with the vendor an interest-only loan at a 6% interest rate to purchase a house in the UK that costs £300,000. Here's how it might work: Purchase Price: The house costs £300,000. Deposit: Let's assume a deposit of £50,000. This means you would need financing for the remaining £250,000. Vendor Finance Amount: The vendor is willing to finance the remaining £250,000 at an interest-only rate of 6%. Interest Payments: With an interest only loan, you would only pay the interest on the loan each month, rather than paying down the principal (the original amount borrowed). So, in this case, your monthly interest payment would be £1,250 each month (250,000 (Loan Amount) * 6% (Interest Rate) / 12 (Months) = £1,250 per month). Term: The term of the loan would need to be negotiated with the vendor. It could be a short-term loan, such as five years, or a longer-term arrangement. Balloon Payment: Depending on the terms negotiated, there might be a balloon payment due at the end of the loan term. This is a large, final payment that covers the remaining balance of the loan. In this case, at the end of the loan term, you would need to pay back the full £250,000 to the vendor. usually you refinance using traditional lenders. It's important to note that while vendor financing can offer flexibility and alternative financing options, it's crucial to thoroughly understand the terms of the agreement and ensure they align with your financial goals and capabilities. It's also recommended to consult with a lawyer and financial advisor to review any contracts before proceeding. So there you have it, a new strategy to use. Finally remember there is no real money changing hands during, it's a paper transaction but it only works in specific circumstances.

Last week's quote "Don't let the fear of losing be greater than the excitement of winning" was of course Robert Kiyosaki. This week my quote is influenced by the week I just had, where on a 3 day mindset session I realised my core values were Happiness, Love and Success. So with that in mind, who said this? Have a happy and successful week.