Coronavirus has caused an inevitable shake up in the property world. One thing COVID-19 has confirmed is nothing in property is a safe bet. We’ve heard this statement so many times already, but this virus does not discriminate.
Strategies
Strategies are endless, SA, R2R, Lease Options, Commercial, Vanilla BTL, Student Accommodation, HMO’s. I’m sure I could think of more because property is so diverse these days.
No one strategy is more safe than the other. It’s been a huge blow to lots of investors and private landlords. I’ve heard big chains have just stop paying their rent on commercial property over night. Rent to rent operators are worrying about how they will honour their contracts with the property owners. How do investors maintain their interest payments to their investors. Universities are asking landlords to just accept that their properties have emptied over night. They are asked not charge the rent or enforce the contracts that the students have signed.
Lenders are adding more strict criteria. They are now asking for Covid-19 action plans. HMO and Student Let applications being put on hold. Mortgage holidays are now having the adverse effect in relation to future lending. I’m sure I’m not the only person wondering what the future holds for property?
What next?
One thing any investor can be sure of is there will still be a demand for rental properties. Some of the riskier strategies may disappear but as long as there are people on this planet they will still need houses. We have to adapt.
What we need to do is get smarter. Most importantly we must make sure we are delivering good quality housing that people love and want to make their home. This sound’s like an obvious statement but if that’s the case why are so many landlords completely missing the mark or leaving their properties in the hands of the wrong people?
Now is the time to seize the moment. Take back control and raise the bar. Let’s make sure that those of us that make it out the other side of this terrible pandemic do it in style! If this task seems over whelming then let’s talk. Feel free to give me a call or connect with me on LinkedIn https://www.linkedin.com/in/carey-cottingham/