We’re seeing many signs on the property front line that the market is roaring back to life post-lockdown, and if you want to get some of the action you need to act fast.
In this article we’re going to share some of our own experiences as investors post-lockdown to show you that it’s a great time to be active in your property search and that things are as competitive as ever. All in all, it’s fantastic news and the market seems to have bounced back quicker than even we could have hoped for.
Let’s look at a few key areas.
There are plenty of deals out there for you to look at, but you need to be quick to secure what you want. The market is buoyant and competition between investors is increasing, especially amongst those who are in a position to capitalise quickly.
You may have heard that there’s pent up demand from the media, which we’ve seen ourselves with many properties selling for above asking price post-lockdown. So, if you find a property that fits within your portfolio and the numbers work, you may need to pay above asking to get the deal. This might be a bit of a mindset shift from your usual way of operating but those who adjust to this quickly may well reap the rewards later.
According to a Zoopla report, ‘House price growth in the UK registered 2.4% annual growth in May. This is up from 1.6% at the start of the year. The strongest house price growth can be seen in Nottingham (4.3%) and Manchester (3.9%).’
It also reports that buyer demand is up 46% since the beginning of March which is a significant rebound and shows us that we’re now in a sellers’ market. That’s why swift and decisive action is now key to get your deals done.
Given the general economic climate, this makes for interesting times and as an investor you need to be ready to go. There’s no time to wait around for prices to decrease and getting mortgages in principle – action is now key.
As you will likely know if you’re familiar with Property Deal Store, all our three co-founding directors, myself included, are active investors. Personally, I think all investors now have a real opportunity to look at different business models and to try something a bit different.
My latest property, which I’m really excited about, looks as though it was once two properties knocked into one at some point. Its vast space could easily become a 6-bedroom HMO, but I’m going to go for planning to get 8-10-person permission.
It also has the potential to become three flats, I could put it back into two houses, or even use it as a large single let. It’s also fully done up which is not something I would usually consider but in the current market, the numbers work, very well.
A lot of investors will benefit from looking a bit further outside the types of properties that have historically made up their portfolios, so if you’re back in the market, it might just be time to try a different approach.
Speaking of different approaches, I always try to have two potential exits in mind when viewing property. Predominantly, rent or sell, and I break that down further – room let, whole house single let, and/or sell.
Given the constantly changing market conditions, it makes sense to be flexible with your plans and have multiple strategies that the numbers work for before committing to buy.
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I hope this will help you get back into the market successfully. Happy hunting!
– Janice Minihan, director and co-founder of Property Deal Store