August 2020

Latest Property Market Report & Investment Update

Dear Investors,

Latest Property Market Report & Updates on Property Investment Opportunity with DPC

This email has two purposes. The first is to update you all on the Property Investment Opportunity and the second is to look at the current economic climate and what this means to the property market.

Property Investment Opportunity with DPC

On an average I get across my desk, 50-60 property leads per month. Now I have to sort out the duds from the winners. Over the past 20 years, I have developed my own ‘Super Spreadsheet’ that quickly (less than a minute) shows me which leads to explore further. I then undertake a rigorous ‘desktop analysis’ and then rattle the 50/60 odd leads to 3.

This desktop analysis consists of the following;

• Social demographics of the area
• Square footage of the property/land
• Loan to value
• Mortgage debt
• Cashflow
• Buying costs
• Holding costs
• Selling costs
• Bedrooms and bathrooms
• Parking and garages
• Number of floors
• Age of the building
• Distance to local amenities and transport
• Distance to schools
• Comparable sales
• Several exit plans

I will then personally visit these 3. Nothing beats seeing the deal in the flesh. Looking at different options form different angles.

And finally, I’ll make a decision to invest or not.

I was in South Wales this week and I have found an absolute gem of a deal. You maybe wondering, in the last email, Harry said he would wait for the ‘novice’ investor to buy now, but the best opportunities will be later. I still hold on to that statement, if we were considering just a property deal. Well, this deal, is not purely a property deal, its a combination of property/business/leisure/recreation.

I’ll be sending details out to my VIP investors first (the ones who indicated funds of 200k or more). Watch out for something exciting in your inbox.

Latest market report

With reference to my last email, ‘I have to hand it to the government, they have been very clever with their recent announcements. Record levels of fiscal stimulus sustained low-interest rates and low inflation. The most recent fiscal stimulus is the changes in the stamp duty tax. With the exemption of stamp duty for residential purchases of properties below £500,000 and the partial exemption for landlords securing investment properties has definitely worked and stimulated the market. A combination of saving a few thousand pounds and the Fear Of Missing Out has brought out the ‘amateur’ investors.’

Nothing much has changed to the above. We are still seeing people rush out to buy and over inflate the property market. Stick to your guns. Wait for the opportunities, they will be coming. All my sources are saying the big guns (£300M+) are just parking their money and waiting for the dust to settle and pounce when the opportunities arise later this year.

One thing, I wanted to bring to your attention, which we will be using to our advantage is the extra Permitted Development (PD) rights coming into force from the 1st of September.

PD came into force in 2015. From the Planning Portal website (https://www.planningportal.co.uk)……its defined as you can perform certain types of work without needing to apply for planning permission. These are called “permitted development rights”. They derive from a general planning permission granted not by the local authority but by Parliament. Bear in mind that the permitted development rights which apply to many common projects for houses do not apply to flats, maisonettes or other buildings. Similarly, commercial properties have different permitted development rights to dwellings.

For more information on this 2015 legislation, please visit https://www.legislation.gov.uk/uksi/2015/596/contents/made

Now lets jump ahead and see what the extended and new PD legislation, starting from 1st September 2020 entails; (sourced from https://www.gov.uk/government/news/new-laws-to-extend-homes-upwards-and-revitalise-town-centres)

…..will mean full planning applications will not be required to demolish and rebuild unused buildings as homes and commercial and retail properties can be quickly repurposed to help revive our high streets and town centres.

This will help our high streets and town centres to provide more space for new businesses and help them to adapt quickly to what consumers and businesses need.

Homeowners will also be able to add up to 2 additional storeys to their home to create new homes or more living space for growing families through a fast track approval process, with a requirement to carefully consider the impact on neighbours and the appearance of the extension.

This will reduce pressure to build on greenfield sites and deliver more homes that fit the character of their local area, without the red tape.

For further information on this please visit https://www.legislation.gov.uk/uksi/2020/757/made

As well as the property advantage of the new PD rights, dentists will be interested in the change of class use. There will no longer be a D1 class (medical/dental premises) as it will merge with the majority of other classes into a new class E. This will allow those wanting to open Squat practices, to easily and with certainty get the planning approval needed.

From the 1st of September the majority of classes, such as D1, are changing to E class.

You don’t need PP, it will come under Permitted Development.

As well as the property advantage of the new PD rights, dentists will be interested in the change of class use. There will no longer be a D1 class (medical/dental premises) as it will merge with the majority of other classes into a new class E. This will allow those wanting to open Squat practices, to easily and with certainty get the planning approval needed.

For further information on this please visit https://www.legislation.gov.uk/uksi/2020/757/made