Depth In Property Fundamentals and Why They Are So Important!

Brett Alegre-Wood
October 26, 2020

Investing in Property with the best Fundamentals

The best fundamentals are changed through your effects of Investment. Learn about it in this video.

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Rant for today or for this week's look I thought rather than have rant today what I want to do is I just want to go and really get down and dirty with what I mean by fundamentals. You hear me say it all the time, so let's have a look at it.

Property fundamentals all right now first of all I read it this way, I say shop, schools transport links, major employment, major investment. But actually if you look at what has the highest impact, it's major investment in an area, it's then major employment in an area, it's then transport links into and out of that area, it's then schools, it's then shops and they are the components of good solid fundamentals.

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It's a very different market in Scotland, it's a smaller market. There's some fundamental changes namely oil and gas with all the issues there and that I know Aberdeen and a few of those places house prices have dropped considerably. So, it depends on how that's reacted.

The lowest impact is shops the highest impact is investment and when we really get down and dirty and therefore this is what I find interesting is you know having good schools is great but actually major investment this is one of the reasons why my strategy for a long time has been all about regeneration and getting into those areas where there's massive money and massive regeneration spent.

And it's worked incredibly well for our clients. You know and we've repeated it in eight different areas now you know and we're currently doing it depending on which area you're talking about whether you're in Manchester or Birmingham or or London you know where where we're talking about. We shift over time but that's all part of the parcel of it. 

Forget about my strategy because you'll have your strategy but by all means if you're not sure of a strategy or you just feel like you're being bombarded with opportunities speak to the team and tell them hey help me work out a specific strategy that meets the current market and the market over the next two to four years. The reason why I'm doing these sort of things and these graphs is because I want you to be able to pick a strategy that meets the market in the up not only the present market but the upcoming market. And that's part of it.

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Why do I talk about fundamentals because if you're looking to buy right now if you've bought not a lot you can really do. One of the key things with fundamentals is you personally can't change the fundamentals of an area. All you can do is change the fundamentals of your individual property and in some cases maybe the internal of the property and that's it.

And that only allows you this much wiggle room in pricing and that sort of stuff yeah because a two-bedroom is worth that range whereas an area can go from two-bedroom that range to two-bedroom this range through massive investment. 

So the reason I talk about fundamentals is because if you're looking to buy now go for the best fundamentals is because they are the places that bounce back first. They bounce back biggest okay and when you get that you'll understand that you know if you're buying based on that criteria above all else so investment in the area, employment, transport links, schools and shops sorry all the way around you know that's what you need to be looking for.

That's what's going to mean that it will bounce back and prices will start growing again because in a lot of cases what you're hedging against the prices may do a little bit of drop and come back. They may do a big drop and come back but you want to be the person that's leaning the way out whatever it is whether it's this you know there's no dropping out or whether it's a little one or it's a big one and the way you do that is by buying the best fundamentals.

Video Transcription

Rant for today or for this week's look I thought rather than have rant today what I want to do is I just want to go and really get down and dirty with what I mean by fundamentals. You hear me say it all the time, so let's have a look at it. Property fundamentals all right now first of all I read it this way, I say shop, schools transport links, major employment, major investment. But actually if you look at what has the highest impact, it's major investment in an area, it's then major employment in an area, it's then transport links into and out of that area, it's then schools, it's then shops and they are the components of good solid fundamentals. The lowest impact is shops the highest impact is investment and when we really get down and dirty and therefore this is what I find interesting is you know having good schools is great but actually major investment this is one of the reasons why my strategy for a long time has been all about regeneration and getting into those areas where there's massive money and massive regeneration spent. And it's worked incredibly well for our clients. You know and we've repeated it in eight different areas now you know and we're currently doing it depending on which area you're talking about whether you're in Manchester or Birmingham or or London you know where where we're talking about. We shift over time but that's all part of the parcel of it. Forget about my strategy because you'll have your strategy but by all means if you're not sure of a strategy or you just feel like you're being bombarded with opportunities speak to the team and tell them hey help me work out a specific strategy that meets the current market and the market over the next two to four years. The reason why I'm doing these sort of things and these graphs is because I want you to be able to pick a strategy that meets the market in the up not only the present market but the upcoming market. And that's part of it. Why do I talk about fundamentals because if you're looking to buy right now if you've bought not a lot you can really do. One of the key things with fundamentals is you personally can't change the fundamentals of an area. All you can do is change the fundamentals of your individual property and in some cases maybe the internal of the property and that's it. And that only allows you this much wiggle room in pricing and that sort of stuff yeah because a two-bedroom is worth that range whereas an area can go from two-bedroom that range to two-bedroom this range through massive investment. So the reason I talk about fundamentals is because if you're looking to buy now go for the best fundamentals is because they are the places that bounce back first. They bounce back biggest okay and when you get that you'll understand that you know if you're buying based on that criteria above all else so investment in the area, employment, transport links, schools and shops sorry all the way around you know that's what you need to be looking for. That's what's going to mean that it will bounce back and prices will start growing again because in a lot of cases what you're hedging against the prices may do a little bit of drop and come back. They may do a big drop and come back but you want to be the person that's leaning the way out whatever it is whether it's this you know there's no dropping out or whether it's a little one or it's a big one and the way you do that is by buying the best fundamentals.


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