[Live Webinar Replay] Did We Fall Off A Cliff in Q2 2021 – Predictions, Strategies, Hotspots for the Rest of the 2021.

Brett Alegre-Wood
June 10, 2021

Quarter 2 2021 built on the already buoyant marketplace in the UK... In fact things are looking even better than before and the market is thriving with every month. Are we running out of stock, not really... Are we going to hit the inflation wall... Yes but we'll discuss this one thing that will offset the inflation. What areas are on the up and up... listen and find out. 

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Webinar Transcription

Brett AlegreWood: You can put them into the chat or the Q amp a and basically what we'll do is we'll get to them as we go through so that plenty of space.

Brett AlegreWood: We can go for as long as we need to go on the scene get any questions answered about the market predictions what's happening, you know to to what's likely to happen.

Brett AlegreWood: With all three of us have got a sort of a bit of a.

Brett AlegreWood: spiel and I think the important thing really is not that.

Brett AlegreWood: we're going to make you know exact predictions and say this is what's going to happen, this is what matters.

Brett AlegreWood: But what you'll find is actually what we're very good at what we've got a proven track record of is actually being able to free the trends of where things are going.

Brett AlegreWood: And I mean it's interesting because you know when we when we first met Nick rotavirus, of course, a little doom and gloom and everyone was top down stuff.

Brett AlegreWood: and actually if you look back at my videos all the way along and you know we've been doing these videos now for a few months, including the guys, you know.

Brett AlegreWood: Actually we've been pretty bloody good you know I mean i'm really we've got nothing wrong to you know touch with that continues.

Brett AlegreWood: You know, but there's always another shock on the way somewhere, but hopefully not for few years and we'll talk about that what I think is likely to happen, and the one reason why I think.

Brett AlegreWood: we're not going to see massive massive inflation that some people like do what you're talking about you know so but look guys will get into it, so this will alarm and welcome retest and Ryan so attention Ryan, they both been with us for years and years right retention 1213 out of.

Ritesh Patel: Nine 2009 July.

Ritesh Patel: 17.

Brett AlegreWood: You must be out, seven, eight years now.

Ryan Rahnavard: Well now, I was.

Ryan Rahnavard: 20 and 2011 is when I joined officially.

Ritesh Patel: joined us.

Ritesh Patel: He joined when the market turned easy.

Brett AlegreWood: guys.

Brett AlegreWood: guys guys that are on if you just want to type in a thing, where you're actually coming from just so good idea, because obviously there's everyone from the UK.

Brett AlegreWood: from UK perspective, but if we've got some people that are on there from you know, whether it be Singapore or there'll be Asia or whether it be Middle East or wherever you know.

Brett AlegreWood: So we actually had a few signups from Australia to.

Brett AlegreWood: That you know so basically yeah if you type in there and that way, we know where you're coming from and we can sort of pitch as we go along, you know the answers to water, but you.

Brett AlegreWood: really want to make it interactive so what i'll do is i'll get started.

Brett AlegreWood: into the you know my side of it and then we'll have retention and we have Ryan and Internet on but um yeah keep it interactive you know, keep those questions coming you know i'm happy to deal with them as we go along, so what i'll do is i'll share my screen.

Let me.

Brett AlegreWood: On I have to share my screen or I can go to.

Brett AlegreWood: yeah okay good.

Brett AlegreWood: Yes, hi guys welcome so gone sort of Hampshire UK UK so it looks like it actually said bar Is there anyone there from overseas at all.

Brett AlegreWood: No, it looks like all London UK emc UK London London.

Brett AlegreWood: London London London UK so.

Brett AlegreWood: Anyone that you when you say UK is it Manchester Birmingham, is it what's the sort of city sort of areas we sort of weave that sort of stuff in there as well, and talk about those specific areas so yeah but um yeah guys so well we'll get started any my son.

Brett AlegreWood: Look, I think the The interesting thing for me and I guess you know if I look.

Brett AlegreWood: At just some stats and let's just put some basic stats of where we're at in terms of what went on last year and what's been going on.

Brett AlegreWood: So the first step is pretty much 5.5 per thousand employees being made redundant Okay, now that was down from 11.2.

Brett AlegreWood: So considerably down, and this is, you know, make no mistake, this is two things one it's the firelight continuing okay and number two is is the market is actually come back.

Brett AlegreWood: And we've had a recession last year when now back we're seeing growth rate, you know worldwide we're talking about 5.6% which is huge, I mean if you think most developed countries go to 2%.

Brett AlegreWood: And we're looking at getting to five, six, you know that's massive, the problem is that it's very to team, so what you've got as a developer account tony's and forget about development and.

Brett AlegreWood: let's talk about the reality is you've got the people have the vaccine and the people who don't.

Brett AlegreWood: You know and that's actually what's happening here a lot of people are getting back to anything I mean there is the you know, except exceptions like Australia and New Zealand, where they were able to close things down quick enough before action to call.

Brett AlegreWood: You know, but yeah I think that the real thing here is redundancies have stayed very long that actually is being government policy working really well as government should.

Brett AlegreWood: You know i'm always very pretty cool government and a lot of things they've been doing, especially over the last 10 years they really hadn't been.

Brett AlegreWood: On the property this the side and actually you know currently doing video right now i'm just writing the script for the basically what I talk about in that is the fact that.

Brett AlegreWood: For whole decade, they effectively stall all of our capital growth and our ground profit potential because basically they didn't invest in areas.

Brett AlegreWood: That you know they did everything they possibly could to limit the you know, the ability to make money you know so that's now changing, I think, and I think those people who've stayed in property now benefit from that okay.

Brett AlegreWood: So yeah and I think that's why, for me, you know I think it's gonna be a golden decade of property, you know I really do I think between the inflation that we're going to get okay.

Brett AlegreWood: Which because we're not spending so much money printing so much money and just with the way technology is going and things like bitcoin or less or stop little bit.

Brett AlegreWood: I think there's some good a decade of growth in a decade, where potentially we get back to the way property used to be, because let's face it.

Brett AlegreWood: Unless you're in London or some of the major cities or some specific areas, you know that really good fundamentals areas.

Brett AlegreWood: You didn't see a lot of growth and actually a lot of stuff that was outside major cities actually still the same price, if not less than what it was the Jesse.

Brett AlegreWood: You know a lot of them had that 15% drop and it just hasn't come back up yeah so redundancies inflation, inflation is one of those things where we haven't had it yet.

Brett AlegreWood: But we're starting to see it okay so right now the inflation rate 1.6% now the UK goes for 2%.

Brett AlegreWood: Okay, so that that's outside of the 2% plus or minus 1% okay they're not too bad either way right and that's a developed economy that's really sort of Armenian now.

Brett AlegreWood: You know 1.6% that's not going to be sure you're not so that's actually quite a good but it's unlikely, and you know previously as 1%.

Brett AlegreWood: And the issue really is what's going to happen with all this printed money and power and normally what we do is we use inflation to the flight that data like.

Brett AlegreWood: Okay, now the government at this time is very different right interest rates are very low because they're very low.

Brett AlegreWood: That actually being able to the government borrowing is very cheap, so they have been able to put refinance it very cheap, I have a long period of time.

Brett AlegreWood: And what that means Okay, is that, even though we've spent a lot of money and and effectively borrowed a lot of money.

Brett AlegreWood: Actually, that money's going straight back into the economy as began circulate.

Brett AlegreWood: It hasn't necessarily just gone back in to wealthy people or hasn't gone back into buying shares in companies and things like it's actually gone to people who are using that to live and to spend productively.

Brett AlegreWood: which has driven the recovery okay so it's actually created a new model that I wouldn't be surprised if this is the model they take going forward now we see this every recession.

Brett AlegreWood: And where what normally takes two years potentially they do right they can squeeze it down to where you know really we had probably six months yeah so interestingly, inflation is on the outside 1.6 71.6% the breakdown of that can you guys read that might be that small.

Brett AlegreWood: I should say what i'm going to do i'm going to share my screen.

Brett AlegreWood: That way it'll work a lot better actually so um yeah so basically I just realized I can't see my screen now.

Brett AlegreWood: it's all right, but I don't know i'm talking about So if you have a beer, that the two major things that have gone up in pricing is housing and clothing.

Brett AlegreWood: yeah you know so housing clothing so they're the major causes of it now obviously house price inflation and you know mortgage payments and things like that.

Brett AlegreWood: That have gone out and that's people borrowing more people are doing that, but the reality is it's not 1.6 is not a problem, the issue comes.

Brett AlegreWood: Later on, and and effectively what's gonna happen later on, I think what's going to happen and what is probably likely to happen later is that what we're going to see is.

Brett AlegreWood: As all that money that we've been printing and printing it gets into the economy and start circulating and what happens now is that the inflation rate is going to go up.

Brett AlegreWood: All right, and and that's actually no, we will see that happen now how much are we going to see it well let's have a look at it sorry I just realized that the wrong one.

Brett AlegreWood: But yeah The interesting thing with the inflation side of things Okay, and what you're going to look at, let me just get them on this is the wrong yeah.

Brett AlegreWood: So Deutsche Bank one lens of global time bond coming judah rising inflation okay now interestingly, you know it may take me longer until 2032 bit inflation will re emerge okay and and make no mistake, I think that will you know i'm not one of these people just gonna sit here and say.

Ryan Rahnavard: I brought my.

Brett AlegreWood: You wanna yeah.

Ryan Rahnavard: When I go off screen yeah golf screen share.

Brett AlegreWood: yeah let me.

Brett AlegreWood: how's it is that you see me now.

Ryan Rahnavard: you're back you're back.

Brett AlegreWood: yeah.

Brett AlegreWood: Okay sorry i'm sorry about that, but did you i'm not sure if you saw that but anyway i'll put it on here, but basically.

Brett AlegreWood: You know, Deutsche Bank and saying now interestingly don't your banker on the fringes so they're out saying hey inflation is coming.

Brett AlegreWood: A lot of economists, saying that actually there'll be inflation but it's not going to be that bad okay and and I agree with the majority economist not Deutsche Bank.

Brett AlegreWood: and part of the reason is and above everything else, and why why i've changed my view on.

Brett AlegreWood: effectively on printing money because printing money traditionally has always been you put a lot of money, and then you have inflation is this thing in detail.

Brett AlegreWood: And we're never printed so much money you know we're talking about increasing you know, a third more currency in you know money floating around money supply playing around and evolving.

Brett AlegreWood: You know, but the reality is one of the big things that changes now, and this is why I think there won't be massive inflation, we don't need to worry about inflation Okay, is because technology is deflationary.

Brett AlegreWood: yeah now let that sink in because if this bubble, for me, this is going to have a much greater effect on everybody's life.

Brett AlegreWood: And you know i've seen in our business i'm seeing aware, you know my phone you know interesting my phone i've had this phone three years now, you know it's a Samsung nine.

Brett AlegreWood: So, and it still works perfectly, but i'm kind of like well what I need to update it, but the reality is with technology every year has been new thing coming in.

Brett AlegreWood: yeah and and a lot of people do update every year and the reality is they come out with new features which, by its nature is deflation, so, and this is not just in a phone, this is in a computer, this is a motor vehicle, this is in every aspect you know I just were just reading I.

Brett AlegreWood: was reading an article about a miracle that now there's a company it's a socially responsible company or you know.

Brett AlegreWood: Not for profit that are printing homes 3D printing homes now and they reckon they can sell them out for half the price of the houses in the same area.

Brett AlegreWood: yeah because their production costs so much down they need stuff that I need awesome stuff which is pretty incredible.

Brett AlegreWood: Right now, the question becomes you know what do they look like what are they you know, and that will get better and better I mean, these are literally this screen.

Brett AlegreWood: 3D printers men, so you know there's a lot of this stuff where technology is causing the deflation so even though they're spending all this money by printer printing all this money.

Brett AlegreWood: Technologies keeping that down, I think that bubble, is what we will see we'll see us through this yeah.

Brett AlegreWood: And you know, at the end of the day for me that that's great news yeah I think that now, above all, is something we can go down.

Brett AlegreWood: The issue is with inflation, we will have inflation that's good for us as investors, we have depth, because what happens is as that value of a currency D values, our debt D values with it as.

Brett AlegreWood: Mortgage holders yeah so it means that we pay our mortgage back at debt back with future.

Brett AlegreWood: pounds dollars, whatever yeah not current, which is good news and that's always been a bit of property investment over a long period of time.

Brett AlegreWood: Okay, and that's always been better at doing an interest only mortgage versus the principal and interest.

Brett AlegreWood: yeah so interestingly to and i'll just say this, this is basically a treasury bond to nothing, so, if you look now two year treasury bonds is the US okay.

Brett AlegreWood: Point 153 cents okay so that's the return you get on a two year treasury bond you give them money you have money for two years and it's backed by the.

Brett AlegreWood: five year Point seven nine yeah 10 years 1.5 32.2.

Brett AlegreWood: So what that says a couple things you know to point to actually is not a I mean if you're investing these things is not worth investing because it's not going to keep up with inflation.

Brett AlegreWood: Alright, so you will actually lose money by investing so that's that's one thing so don't think i'm making these.

Brett AlegreWood: But the thing is actually interest rates aren't now there's no 7% there there's no no interest rates aren't going to go stupidly through the roof, and then i've been predicting too yeah.

Brett AlegreWood: And this is a very crude measure, because actually you know, this is not something you can just go on that's definitely what's happening for me in my case.

Brett AlegreWood: But it gives you a good indication that actually you know they're not going out stupidly yeah However, if you do look at it from point 153 2.7 5.797 is actually a five fold increase in interest rates.

Brett AlegreWood: So that is quite quite a lot, you know when you can see that they from coming such that it comes from such a small right below I think realistically from that side.

Brett AlegreWood: And i'm inflation is a big issue for me yeah and I think that's where you know as much as I, you know.

Brett AlegreWood: I believe that inflation is good because it gets rid of that debt too much information too bad because then our.

Brett AlegreWood: Wages go up and if our wages have to go out food goes up building costs, all that sort of stuff.

Brett AlegreWood: Now we are already seeing inflation in the development industry so shortages in Britain shortages in Labor and shoulders enormous those that.

Brett AlegreWood: I mean we did brexit which killed off all of that, you know later that we had the cheap European Labor.

Brett AlegreWood: Which now you know we don't have so Labor Labor is going on, you know so there's a lot of inflationary stuff in what we're doing but by the same token, as I mentioned.

Brett AlegreWood: Technology, for instance, one of the development partners we work with back behind they have a effectively a prefab company that brought down in.

Brett AlegreWood: Can somewhere i'll tell me where it was in 10 which will prefab they're effectively.

Brett AlegreWood: The kitchen what they do, they build on there they put them on the back of the truck they shouldn't there and then they mature we find them in the place yeah.

Brett AlegreWood: And they can build the size, they don't doing them, you know and then what they do is they put them all together and they're already pre you know the kitchens and bathrooms and all that already done.

Brett AlegreWood: Yet, so they save a huge cost yeah so that's quite a good news, you know so as much as we've got these risks actually they are tempted with other stuff so.

Brett AlegreWood: I haven't seen any questions here they've got questions, make sure you talk to me in, and we can answer them, as you know, as we get through.

Brett AlegreWood: Good so one of the big things this is more of a short term thing, I think, is the stock levels so you're going to hear a lot about you know estate agents had lot of stock levels of 14 years also low stock levels and helping marketing.

Brett AlegreWood: The stages they're almost almost running out of homes itself right interestingly yeah, this is not something that is just happened right that top article there is from 2017.

Brett AlegreWood: yeah the next one is from 2000 22,020 yeah and this one is from tonight you know, so this is not something understand that the media has to drum up all the sensationalism.

Brett AlegreWood: Yes, so yes stock levels are low because why they were very low before and not everyone's jumping to sell out.

Brett AlegreWood: yeah so they've remained relatively low, but the man is coming yeah so and because of that yeah they're finding they're struggling but interestingly, if we look at the stock levels yeah you know, and that obviously with that that's 2018 always.

Brett AlegreWood: Change the camera.

Brett AlegreWood: yeah that's good but but bottom line is they're not that dramatic so as much as they're making it sound like stock levels low they just it's not nothing to worry about okay.

Brett AlegreWood: So yeah i'm just going to question so Is it better to wait until the statue the holiday and fill out this past, so I can see what impact it will have on the market, as I feel it is inflated.

Brett AlegreWood: Well Okay, so a couple things, let me deal with the the market being inflated I don't think so, you know I think the marketing plan at all, I think, actually the market if you look since 2016.

Brett AlegreWood: We come through the jsc process that have to give up now and that's process in major cities and London and those other places yeah.

Brett AlegreWood: By far the majority of places around the UK have had very little capital growth, they have been deflated for the last 10 years.

Brett AlegreWood: yeah and we're talking, you know if they don't get any growth whatsoever in prices to stay the same yeah that effectively is deflationary yeah because they're not even keeping up with inflation.

Brett AlegreWood: yeah, which is what you'd expect and that's what's happened, but by far the majority of places when you step outside of major city, you know across the UK.

Brett AlegreWood: yeah and that's because of austerity that's because the government didn't invest anything.

Brett AlegreWood: yeah it's only in the areas where a lot of foreign direct investment is coming into which places like Manchester and Birmingham, or maybe there's a chest to or across rail or things like that.

Brett AlegreWood: we're in those places then Okay, you know depends, but I do think that, given you know the gypsy austerity, followed by.

Brett AlegreWood: A brexit followed by coronavirus we haven't seen house prices do nothing yet I think it's you know we're starting to see them come around I mean they're saying 10% you know increase 10.2%.

Brett AlegreWood: You know, increasing as well, which is great yeah you know that's not me that's not as war that's actually just.

Brett AlegreWood: Picking up the slack a little bit you know I think and that's why I think for me this next 10 years ago decades.

Brett AlegreWood: I think we're going to see how spices across the UK increase, however, that doesn't mean you can buy anywhere, because the principle still holds which is.

Brett AlegreWood: You buy where the best fundamentals are because there's a lot of areas that still aren't going to get investment but still I can you know there's still not places where people want to live.

Brett AlegreWood: And this whole race, the space idea, you know actually for me is again it's a media fabrication yeah.

Brett AlegreWood: Yes, people like to live, and you know people are making choices to work on that and that is going to happen there's an element of that yeah but.

Brett AlegreWood: They can make the choice, where the fundamentals are they're not going to go where there's no transport links there's no pubs to go out and you know it's.

Brett AlegreWood: been dead zone didn't we got it so if you're buying a new, it might be cheap but it's not worth it.

Brett AlegreWood: yeah, so I hope that he thinks that that that's that invited so Now let me do this, should you wait until after the staff to the holiday and feel I was passed on, the answer is depends on the situation, I would say.

Brett AlegreWood: Not necessarily now.

Brett AlegreWood: houses are selling they don't give you an idea we've got right now 36 properties for sale that you know secondhand properties were doing resolve that.

Brett AlegreWood: And, and so there's 36 five have actually got offers and so yeah so it's not like they're all just selling like boom boom boom boom boom boom yeah.

Brett AlegreWood: and part of the problem is we've actually had more offers, and then the part of the problem is right now is it still kind of early days.

Brett AlegreWood: Once we get a negotiation happening and that's all hit arm's length and then right you're gonna sell let's say 100,000 property, you know.

Brett AlegreWood: You know, and it sells for 110,000 problem is the value we guys in the days of 90,000 and it's like what do we call them yet so, then they go except 19.

Brett AlegreWood: All what's going to happen is, if you wait probably three to six months for those speakers to get onto land registry of the higher rates.

Brett AlegreWood: yeah, then the values and start valuing stuff, and this is one of the problems with this lag you know, it was the market goes up is.

Brett AlegreWood: The house prices and evaluations will not the House bosses you negotiate valuations in the lag a little bit yeah it's the same as the other end when house bosses drop.

Brett AlegreWood: The valuations continue going, not so much now they've defined I think them so should you wait.

Brett AlegreWood: Look that's entirely up to you, obviously with stamps in the holiday, now that that is coming to tune in.

Brett AlegreWood: So it's going to have less than perfect now but understand I don't think the live and on anything stanchion are the reason behind the market doing good.

Brett AlegreWood: I think it's the 10 years of austerity breasted coronavirus and all that stuff yeah actually, that is what I think is really.

Brett AlegreWood: You know this pent up law and I don't see that changing you know not what's not within government stuff and then you know stuff that's been happening so you know for me that actually.

Brett AlegreWood: You know so hopefully that helps um yeah so got another question here the tax implications in buying that property make it much less attractive, is it still worth doing great that's an enormous slum that yeah I think.

Brett AlegreWood: The technical question hundred percent you know what the last one was coming into the year that I think was 14 or 15 or.

Brett AlegreWood: 16 maybe bring 16 when I said, anyway, when it is a complaint or.

Brett AlegreWood: The tax changes so when they come in, you know yeah it's a it's a I grab you know it's a grab the cash and.

Brett AlegreWood: I don't agree with it, I think it's ridiculous and you know, and I love to overturn it, you know it shouldn't be like that no the business gets taxed on profits, you know gross profits nonprofits anyway.

Brett AlegreWood: let's not debate that I think the mistake that a lot of people made was involved with no money in property anymore so i'm getting out.

Brett AlegreWood: yeah those properties of those people got ours yeah now we're gonna have a golden age, which is always what happens.

Brett AlegreWood: yeah the government or rein it in and an elusive and then I ran it in and listen and this is over decline, so I think now there's not too much more raining in.

Brett AlegreWood: yeah and I think that they've shown that that's not the case, they don't want that to happen, and this is not just in in the UK, this is across the world.

Brett AlegreWood: And the other side of it is, is a lot of people across the world, so a lot of governments across the world and our standard come together and I don't know the US just synergy seven they're talking about a 15% of the minimum Corporation.

Brett AlegreWood: So they're starting now to give a fair playing field for you know all players and I certainly G seven.

Brett AlegreWood: So I think you know, is it worth yet still worth doing but, as always, you bind the best areas you do things are regeneration, so you can get the capital, and you know the fundamental change so in a capital F net.

Brett AlegreWood: You know your cash flow, so you know you make sure you know what's costing your rent.

Brett AlegreWood: Mortgage know building classes, that you know all those principles still apply and there is money in for an action there'll be more money and now because it takes people got now's yeah and the people that have stayed now benefit, which is often times what happens yeah so yeah.

Brett AlegreWood: One more so faisal is considering a high interest savings account you know developing country generally risk free or a risk on.

Brett AlegreWood: Is a high okay so developing country that I would say it's definitely not risk free I mean if you look at say what happened with the Icelandic banks.

Brett AlegreWood: You know images see what happened there people lost speeds look the question really is do they have a scheme, such as the FCC if students if.

Ryan Rahnavard: I say I say.

Ryan Rahnavard: If si si si.

Brett AlegreWood: yeah that one yeah i'm financial compensation scheme, basically, but basically if you have money in the bank, the government will underwrite that yeah.

Brett AlegreWood: And you probably might find it with a high interest rates yeah and you know you've got to be done in developing countries, which are inherently risky.

Brett AlegreWood: You know, and if things go wrong, which understand and i'm talking about the vaccine non vaccine that I think will come into play, next year, when.

Brett AlegreWood: developed economies that that had the vaccines continue to develop and come out of it, and then the ones that haven't a left flannery.

Brett AlegreWood: yeah so you know watch out for now that that is a prediction OK so i'll come on our city with a few more questions great keep the questions coming guys that's awesome yeah so so basically interesting I follow like a ray dalio and um yeah it's interesting because.

Brett AlegreWood: He wrote before coronavirus in November in 19 he actually put a massive hedge.

Brett AlegreWood: Last shorting the market and it was like Why is he doing this and actually explained the way, which is fine and in the end.

Brett AlegreWood: coronavirus happened in March, not in January, but you know, so there could have been a lot of conspiracy theories about that, but actually he explained away but.

Brett AlegreWood: You know something is he he has some great books principles, you know really talks about he's one of the biggest hedge fund managers in the world, I think he's retired now from that.

Brett AlegreWood: What he's retired but bottom line is he's changed his stance on a lot of things so he's very handsome bitcoin has a lot of these people guys are.

Brett AlegreWood: And now they're starting to turn around the I think the interesting thing here is now, we talked about technology being deflation deflationary.

Brett AlegreWood: But I think the other side of it is is we're starting to see now a new market coming out, you know Warren Buffett hasn't been performing like he used to before.

Brett AlegreWood: You know, and actually he's totally missed the whole bitcoin thing you know, and so a lot of these old players haven't necessarily embrace what the young players.

Brett AlegreWood: You know and i'm not saying invest in bitcoin i'm not saying something getting into you know you can look at yourself, because obviously yeah the risks.

Brett AlegreWood: are certainly there and the returns are certainly there you know, and it can be a day to day thing you know for me that's that's a brilliant investment going to do something like that i'm.

Brett AlegreWood: Not your whole investment because you know it's interesting, I have a lot of my friends now who are in Australia, and we have jumped on the bitcoin.

Brett AlegreWood: And, and you know and it's interesting because it's a roller coaster and it has been a roller coaster and I think it will continue to be a roller coaster I think long term fine.

Brett AlegreWood: But the interesting thing is they put all their money into it and I see this happen so many times, where you get entrepreneurs to put all their money and all their time into one business.

Brett AlegreWood: And then the business files and why do well for a couple of years and their business failed.

Brett AlegreWood: But my point with this is that times are changing technology and the way things are doing, you know you've got a decentralized finance which we haven't heard of that what it is.

Brett AlegreWood: that's that's taking over finance, you know traditional banks and all that so stop having real problems down even with this G seven one of the chats was about the fact that.

Brett AlegreWood: Rushing wants to take out London from any or financial services out from any restrictions in terms of them, you know.

Brett AlegreWood: In terms of you know, these changes they're deciding things they want to, they want to leave financial services on touch because you know the traditional banks are struggling.

Brett AlegreWood: yeah so there's a lot of stuff going on right now, but actually The great thing is none of it is really bad in terms of property investment.

Brett AlegreWood: yeah and, if anything, property investment would be pretty damn good you know they had a chance to raise the sorry to raise stamp duty and do a list of things I didn't you know.

Brett AlegreWood: Look, the biggest pain, the bomb is is the tax side of things, but you know what the construction, then.

Brett AlegreWood: You know, we put in a company, you know we're working with a company called get brown can actually you know stretching you in a business and says, you are when you buy a property.

Brett AlegreWood: And they won't move an existing portfolio just yet, but you know we work with them, and you know great great product missing really good.

Brett AlegreWood: products coming out what that now yeah so that gives you a bit of an idea, let me just check what other questions yeah so i'm.

Brett AlegreWood: not letting me, I still get rankings if this happens, it will surely spread um okay yeah it's great it's a I don't don't lie don't like him anyway, and I think it's stupid idea I cannot see how it affected doesn't work it never works yeah So yes, he may get away with it for a while.

Brett AlegreWood: But I don't even know if he will be able to because it was such a small margin i'm not sure he's going to be so robust on you know coming out and doing it, you know I forced him, maybe he will you know, maybe we'll maybe we'll get it through and maybe he'll try.

Brett AlegreWood: That don't think it's going to spread necessarily you know I mean certainly Labor talking about that.

Brett AlegreWood: that the problem is is the money to do that, you stop in would invest in coming in and the moment you do that, you slow everything down.

Brett AlegreWood: And that's not what they want that's not what the government wants yeah So yes, maybe the Mayor of London can put that in place, but I think it's going to be more.

Brett AlegreWood: it's going to be more the same you know they've got the license, and all this other stuff I don't necessarily see the rent caps.

Brett AlegreWood: You know happening straightaway that's going to take some time to get if they do it, what he's been there for us.

Brett AlegreWood: So we'll see you know will actually spread look if you're in a Labor area, I think we will, but I think the conservatives.

Brett AlegreWood: They hadn't really gone for that and I don't think they were talking about that, and I think there were lessons learned from you know.

Brett AlegreWood: The fetcher days, where it just didn't work, you know it held back the market and held back you know, the ability to be able to keep it within the housing stock now that we've got with the.

Brett AlegreWood: You know the the public housing it's a polling and i'm in grenfell is just the Austin volume.

Brett AlegreWood: You know that that's what happens when you have rent camps and you don't have money coming in investing you have people doing all you know.

Brett AlegreWood: I just don't see that being a workable thing I think you know it's interesting to windows, you know can that work well if you.

Brett AlegreWood: That now he's in maybe he won't be so sure about doing that yeah so we'll see but are you guys keep the questions coming and enter any other questions is that.

Brett AlegreWood: So yeah so guys that's me look oh good really there's no need for me there's no real negative.

Brett AlegreWood: You know mortgages starting to open up yes it's too hard now you still go through ridiculous applications and all that stuff.

Brett AlegreWood: But once you get over that it's fine you know there's mortgages there we're seeing capital growth this demand, you know everything's working well you know, an interesting thing with the with.

Brett AlegreWood: How spots and will continue to increase because they're costing more to build it So yes, it might be that's just because inflation but that's just slightly weird you know.

Brett AlegreWood: house another building materials cost more that drives the house prices up, and you know, in the market demand all that stuff so you know that's working gold decade, and I think really that that's what's going to happen, I don't know if you guys have any opinion on that.

Brett AlegreWood: written on.

Ritesh Patel: yeah absolutely I mean it's interesting just to follow up from what you were saying about.

Ritesh Patel: The raw material costing more because over the last over the last four four weeks or so the amount of.

Ritesh Patel: conversations i've had with developers regarding this and they're actually coming in telling me and saying this in.

Ritesh Patel: These prices that you guys have got right now, where you know we're going to have to change the very soon, because.

Ritesh Patel: The cost of this whole build is changing, everything is costing us a lot more, especially the raw material.

Ritesh Patel: So you know we've had cases where run few clients who are going through the numbers and pretty keen on getting involved in.

Ritesh Patel: Much right doing this, not to go back and say listen this price point could change soon, so it is something you want to do let's try and get involved, while is that different and that sort of stuff is going to happen more and more yeah.

Brett AlegreWood: 100% hundred percent.

Brett AlegreWood: yeah that that is the soccer guys and that's that's the exact conversation we had and that's why we generally know.

Brett AlegreWood: Before things happen because these developers, the same pot on the bricks we are now or in the Brits it months ahead of time.

Brett AlegreWood: You know, we haven't installed on site and we've worked out, we need 50,000 bricks and we've got to order now in order to guarantee delivery on Sunday, you know that's that's the stage where that once that stage it's then house bosses, not to go on, you know so yeah.

Brett AlegreWood: Okay well.

Brett AlegreWood: i'll hand you over to actually a little one more question man inside Michael was some question as you see mortgage rates increasing, and if so what's the recommended will be stress test rates look.

Brett AlegreWood: Like so stress test right, I still work on 6% yeah that's just me i've always you know 60% more, which was the average across my entire portfolio, I just worked on that.

Brett AlegreWood: Obviously my my mortgage right now is ridiculous really low you know it's it's much lower than that, and I think it's probably two and a half 3%.

Brett AlegreWood: You know, you know, this is a few, there are three and a half old, you know that i've got stuff that from pre jsc that is based right track, you know stuff.

Brett AlegreWood: half percent above base rate and things like that you know and they look no so I still work 90%.

Brett AlegreWood: Because i've never been doing that have never had to worry i've never had to consider what happens if interest rates damage.

Brett AlegreWood: I don't see them, I actually think he could probably drop it a little bit, but, to be fair to do 6%.

Brett AlegreWood: Then, that will accommodate so hundred percent that will accommodate a lot of cases the mortgage company doing 125% or 130% at.

Brett AlegreWood: You know, pay rates or you know 1% above, you know that sort of thing you know so and that's just what I do the thing is individual mortgage companies will have different criteria Okay, but if you're talking about portfolio planning I just do 100% 6% yeah and just generally i'm.

Ryan Rahnavard: Sorry, can I just quickly on this one, Michael a good indicator always to us is to look at the rate difference between a two year fix and a five year fixed.

Ryan Rahnavard: And if you look right now across the board there's not that big of a difference between a two year rate fix and a five year rate fixed which tells you that even the banks themselves.

Ryan Rahnavard: don't see the interest rate rising certainly within the next five years thing, even Barclays right now for a 10 year fixed rate at a particular rate.

Ryan Rahnavard: Which is which gives you a clear indication that interest rate rises, certainly not something to be seen, right now, over the next couple years certainly over the next five years.

Ryan Rahnavard: So always sort of if you look at the rate difference will give you a pretty good idea of where everything stands from an interest rate point of view.

Brett AlegreWood: um yeah So do you want to take over.

Ritesh Patel: yeah cool do you guys see the screen is.

Ritesh Patel: yeah we good.

yeah.

Ritesh Patel: Good so what I want to talk about okay So where is the opportunity.

Ritesh Patel: Is there the opportunity everywhere guys and I know you're not the typical sales line is always.

Ritesh Patel: got this opportunity and it's, the only way, and then it's the best time but believe me that there is opportunity and property everywhere it's just a case of.

Ritesh Patel: You having a strategy, having a plan and understanding what a good opportunity actually looks like in in the real world versus.

Ritesh Patel: What you think or people keep telling you it is so Dr Deborah what I want to talk about is a few things first of all going to go to a ripple effect pensive on which is.

Ritesh Patel: Our unique sort of formula, or how we source property okay going to go into the northern parts after that and then Manchester Birmingham.

Ritesh Patel: And pretty much back so ripple effect Pentagon, so this is our property sourcing formula that we've been using for for a long time now and.

Ritesh Patel: What we've done is we've pretty much simplified the way we go about you know sourcing property in different parts of the country Okay, so we split it into five different zones.

Ritesh Patel: sections zone one into London, which is prime central real estate London zone three or four or five submissions as you achieve that work and i'm thinking outwards.

Ritesh Patel: you've got the Community towns and then major cities, universities and then major towns.

Ritesh Patel: which were not very we're not too focused on don't feel that is something which you really want to get involved in it's more case you have, if you have to do, because the capital you've got.

Ritesh Patel: Then we can look at it, but you gotta be very careful when you're when you're working in that sector now using dispensable what we want to do is do a few things.

Ritesh Patel: We want to pick out which areas, you should be investing in based on market conditions so match the market to the area.

Ritesh Patel: But then we also want to match your personal investment goals to Asia be investing as well okay.

Ritesh Patel: And it's not always a case where you know as a business right, we might be focused right now, for example, quite heavily on major cities.

Ritesh Patel: With universities, but that doesn't mean that your personal situation your investment goal means that you know you can't invest anywhere else you can.

Ritesh Patel: You can invest somewhere else, and when you speak to the garden you speak to this in more detail, you know will explain.

Ritesh Patel: How that will look we're using this we basically want to predict the price growth based on the fundamentals want to pick out the most investable cities which are generally the ones with the strongest fundamentals.

Ritesh Patel: I want to stay ahead of the curve, and this is often you know you hear the word regeneration regeneration a lot with us, because we know if we get you into regeneration spots.

Ritesh Patel: Then you will get into that area before prices start really exploding and you're already one step ahead of the curve and then say, which is ideally where you where you want to be okay so northern palouse.

Ritesh Patel: Government initiative, launched in 2013 ish, I believe, where they wanted to come out and level up the Norman economy with the South in London.

Ritesh Patel: Now, when I say level of it it's practically impossible to totally level up but they certainly saw the disparity between the two economies as a bit of an issue.

Ritesh Patel: And an opportunity to get the North, you know a little bit more up to speed and catch up a little bit there's opportunity and.

Ritesh Patel: The way they wanted to do it with by improving transport infrastructure, creating jobs and and basically having these cities in the north connect more connected to each other, which makes it easier for business.

Ritesh Patel: For you know someone from one city to travel to the other city and also creates populate, we want a population okay.

Ritesh Patel: And the normal the big ones are Manchester leads Liverpool Sheffield you probably heard of them.

Ritesh Patel: And there's different data, which will give you a sort of investment case for each one of these, I mean one of the ones that we've certainly found very interesting over the last few years, with Liverpool.

Ritesh Patel: A lot of data around the population growth, the expected yield yield that you're getting in various postcode there the regeneration around the docks area, the knowledge school to you know i've made it a very attractive place to invest in.

Ritesh Patel: But then you've got the two big players you've got Manchester, which is the poster child of the North and known by many as the capital of the North.

Ritesh Patel: marketed very well, so you know when you when you look out there, if you go into the Internet Google Manchester property investment you'll find there just page after page after page of.

Ritesh Patel: Information, which supports and and I feel that is marketed themselves very well I rightly so, because you know if you look at Manchester.

Ritesh Patel: In terms of employment it's got 80% of the footsie 100 companies now have a presence there, so that's not necessarily the.

Ritesh Patel: The main headquarters, their main headquarters are probably still be London, the world shop fun Okay, but when it comes to second office instead offices, you know that there's they're showing their presence there.

Ritesh Patel: Digital wise, you know tech business startups are happening there, a lot of homegrown unicorn by appearing above 1 billion so you've got new businesses fresh money growth for the future.

Ritesh Patel: And established businesses like Google Amazon IBM, so you know what this will tells you that you know from an employment perspective, it is fundamentally already very strong but it's not.

Brett AlegreWood: We lost him, I think, so you might.

Ritesh Patel: be better.

Brett AlegreWood: yeah yeah sorry yeah yeah.

So.

Ritesh Patel: What we're saying there is not only is it sort of well established in terms of current established businesses, creating demand but it's it's sort of well set for the future bodies to tech businesses.

Ritesh Patel: Okay it's retaining his graduate population, meaning the skill set that you required to fill these jobs.

Ritesh Patel: The population that's going to want to rent a property high quality property you're going to buy high quality property is now saying that in the past, you would have found.

Ritesh Patel: You know University of Manchester would have been great for a student to go there study policy have a great you know student life, but when it came to.

Ritesh Patel: You graduated you move back to London back so slow down, is no longer happening because Manchester has got everything from what play you know affordability is that okay so.

Ritesh Patel: All this major investment going on Manchester City Airport you've got the city apple which is 5 million square foot of.

Ritesh Patel: Planning and office area being built 1 billion development value.

Ritesh Patel: of running a Jason to the city, they basically use the whole area to build purely based commercial property so hotels office space super showed.

Ritesh Patel: You know, so that it's going to attract a lot of investment and it makes it very easy for Manchester to create on a global level.

Ritesh Patel: Because you're now right next to the apple and you've seen businesses from China, you know already have offices in presence that i'm this will just keep going okay so.

Ritesh Patel: All this is set Manchester are pretty well and, if you want to you know, invest in a major city.

Ritesh Patel: London is sort of out of the question, but whether it's from a price perspective, but you want to keep yourself at a low risk level you don't want to go out somewhere cheap.

Ritesh Patel: Where the fundamentals are not very strong and can suffer manchester's probably one of the best options and in terms of area, you know look you've got the centralized areas.

Ritesh Patel: Which are priced pretty high now because they've already been really growing over the last five years, I mean I think 2015 I remember, we sold a.

Ritesh Patel: Development in the northern quarter, which is a pretty central trendy place in Manchester, we were getting involved at one beds 151 60 K something like that you try and get involved now.

Ritesh Patel: you're looking at 200 K minimum and North yeah so we've already seen that, but now the growth is coming outwards towards Castle field, for example, which is.

Ritesh Patel: The gateway to the city Center you've got the canal area which takes you with a bridge which takes you into the city, but that whole stripping constant build is being generated.

Ritesh Patel: A lot of land banking happened and now developers all coming to market and building it out.

Ritesh Patel: But pretty good price points because compared to you know somewhere like beans gay again, which is more central you know, a one bed at 250 to 60 you can still get here.

Ritesh Patel: At about 200 ish case and, consequently, so opportunity as the gross bills outwards okay.

Ritesh Patel: You got media city again so for keys greater man says he goes so much ego he's going on there and it just comes down to.

Ritesh Patel: What sort of capital you've got to get involved, highlighting you know, which is the sort of the best development which we'll talk you through and then you know, making that sort of decision, but you know that's something we can talk about more than one to one level.

Ritesh Patel: If you decided to follow that Bob so moving on from Manchester Birmingham UK second capital city.

Ritesh Patel: Look, the numbers again 120 billion regional economy 38,000 more jobs forecast over the next decade, not some office space I just two cousins feet so.

Ritesh Patel: If you're not familiar with that that's the high speed train line which is going to connect London to Birmingham is phase one.

Ritesh Patel: it's been officially signed off funding and everything so it's not speculation anymore it's happening.

Ritesh Patel: that's going to play a major role in in Birmingham, and the property prices in Birmingham.

Ritesh Patel: The population is one of the youngest populations in the country so again, you know it's a growing city where there's going to be demand for high quality accommodation from a rental perspective.

Ritesh Patel: and obviously a living and only ownership perspective and some of the numbers have already sort of showing that it doesn't have probably our prices have been growing there.

Ritesh Patel: But you know as Brett said earlier on, you know some of you might be 8.6% 10% of thing oh that's that's a lot but.

Ritesh Patel: Really it's just the beginning, as far as i'm concerned because we haven't seen sustain them out over a long period so still waiting for the exciting part in my, in my opinion.

Ritesh Patel: And the rental markets been growing back so it's a case where all the stats and the data actually show that or the region and all the change that's happening in the economy there.

Ritesh Patel: Is you know translating into growth I started to translate into growth which is, which is key gave were in Birmingham.

Ritesh Patel: The cool part of the Birmingham region program is that to 60 call so.

Ritesh Patel: You know, technically Birmingham, yes, is the second biggest city, but the challenge, I had was actual core of the city.

Ritesh Patel: So this is, you know the central area was too small okay so what's happened is the government have you know got this big city plan where they're expanding that core out by about 25%.

Ritesh Patel: and creating five to seven new districts, we should all form part of the city call okay now for property investors, this is awesome.

Ritesh Patel: Because what this means is that they're going to the plans are going to increase the land value all around here Okay, and what I want to do as an investor.

Ritesh Patel: If you want to get involved that's what I want to do, because I want to arrive of the money that's going to be pumped into the area by the government and.

Ritesh Patel: private businesses, which will then populate property prices and a lot of them like jewelry quarter they're pretty saturated and there's been a lot going on already so there's not much land, you can actually build on there.

Ritesh Patel: Then you've got the Chinese district, you know the business district, which again they're quite saturated but the opportunity for me if you want to buy in and around the city is in this new District Court gun quarter.

Ritesh Patel: Okay, could have gone kota, as you can see, is within touching distance of the city, however, from a residential development perspective it's very underdeveloped, meaning that there's not been.

Ritesh Patel: Much housing built them okay that has changed now and started to kick off one of the biggest developers in the country Barclay homes have just committed to.

Ritesh Patel: Well, they already committed to the scheme, a couple of years ago, but they're building is huge development back 400 or units.

Ritesh Patel: and development which is reminds me very much of a development that you'd actually having a city like London.

Ritesh Patel: But i'm not shocked because barking hands traditionally are in London developer, who.

Ritesh Patel: wouldn't touch anything outside London for years, but the research and everything now they believe that Birmingham.

Ritesh Patel: Is the next spot which they feel will steal some of the economic output coming out of London, so they started they've got the ball rolling, and what you'll feel you'll see now.

Ritesh Patel: is more and more private development will start coming, but what you want to try and do it possible is getting early because you know, as I say.

Ritesh Patel: If you can get him first that's what you potentially have the biggest chance of uplift okay.

Ritesh Patel: that's that's the sort of cities and developing if you want to be, if you if you're open to buy more and into like a.

Ritesh Patel: An area which need more general regeneration and more earlier in the cycle, then you got to look at someone like big bus.

Ritesh Patel: Okay, dubbed by many as the protect their potential their answer to shortage in the future because it's very much going to be about tech.

Ritesh Patel: Digital you know creative arts all that sort of stuff and the buildings and everything they actually do represent that kind of shortage field.

Ritesh Patel: and actually a lot of the developments that are are going to be going up there because make that mistake the land banking has been going on there for agents so.

Ritesh Patel: All the land is owned by you know developers and now you know they're slowly slowly launching at the right time, when they're ready.

Ritesh Patel: But a lot of the buildings are going to call it, there are going to maintain that rusty brick work look very much like shortage, because they do want to sort of copy that but.

Ritesh Patel: That is something which is certainly from a value perspective, a good area to get into because you're not paying the central Birmingham prices.

Ritesh Patel: Yes, you're buying earlier in the region cycle, so you could argue that a little bit more risk there, what if all the regeneration.

Ritesh Patel: done and finished in time or there's certain things are not signed off I get that, however, you know.

Ritesh Patel: If you do your research you'll see that a lot of the stuff has been signed off and its proximity to the city mean that you know, for me, if you get in now at the sort of price point.

Ritesh Patel: You know you've got the potential to ride the wave up and create some big capital uplift over the next five years.

Ritesh Patel: but also your rent to you, there will be a little bit higher than the city because again you're buying property there for a lot cheaper okay so that's one to keep an eye on and talk about if you want a big region spot in Birmingham okay.

Ritesh Patel: impact, a region on.

Ritesh Patel: Prices for properties, if you look at these two graphs there we got Manchester and they got Birmingham and interesting because.

Ritesh Patel: A lot of the conversations I will have with investing, especially when we first started talking is you know i'm new builds overpriced you know, compared to the second hand market, and you know there's there's two sides to that and actually it's probably.

Ritesh Patel: A webinar in itself to go through that so i'm not gonna go into too much detail there, but from here, you can clearly see that actually in these two cities new build you know, has been outperforming the secondary market okay.

Ritesh Patel: And I think one of the reasons for that is because these Birmingham and Manchester there, these are both cities which.

Ritesh Patel: have been undergoing change and the sort of requirement of this new build you know luxury style development which is pretty.

Ritesh Patel: pretty much been in London, for a very long time, has not been there in Manchester Birmingham, for as long, but because of this new.

Ritesh Patel: population of young professional that's being created, all of a sudden, they want the one in two bedroom apartments more than there are they don't want the three bedroom houses which are.

Ritesh Patel: Further out, you know they want to be near the city, they want to be near work that says restaurants, bars and that, as you know.

Ritesh Patel: i've been a big cancerous but what's interesting to me is old forget the percentages of how much you know it's got up.

Ritesh Patel: I like the trend Okay, I like to see how it's trending up with over a period of time, the percentage can change, you know how much of the property grows.

Ritesh Patel: Over the next year for five years, but as long as we're trending well I like it, and the interesting part here also is when I look at Manchester you see how this this bit of a bit of a boost tab.

Ritesh Patel: Okay versus Birmingham is pretty not have that same boost i'm going to put my neck I, but I think this is about to come for burning on.

Ritesh Patel: This little boost that you're seeing for Manchester I think that's going to come from Birmingham once the HST plans get closer and closer to completion and people start realizing that the big companies.

Ritesh Patel: Are in Birmingham already you know KPMG Deutsche Bank hsbc pw see Goldman Sachs have just announced they're going to be opening an office there.

Ritesh Patel: And these are not these are you know these are big businesses who cherry pick and choose areas where they want to present because they do their research into you know.

Ritesh Patel: How quickly can people we get started from probably the most skilled city that we have in the UK, in terms of London for that services banking finance industry okay.

Ritesh Patel: What about the city that we're going to be opening our office in have we got the right people there to employ.

Ritesh Patel: they've done the research for us they've seen it and they're they're all over there, so for me big opportunity and someone like the gun quarter, which I spoke about.

Ritesh Patel: You know, one of the developments were involved in snow he'll walk I mean you're walking distance from you know, three big business districts four minutes 15 minutes.

Ritesh Patel: 20 minutes you know you've got a five minute they've been there five minute ride to the.

Ritesh Patel: The main haters do station which would then take you into London in 45 minutes, they were talking about Birmingham, for me, turning into a Community committed to London place.

Ritesh Patel: You know so some pretty exciting stuff and again, you want to definitely look into, but we can again compared to the specifics of projects on a one to one level but yeah yeah that's burning a Manchester and just to touch upon those deep places yeah.

Brett AlegreWood: awesome cheers man and I, you know I think guys have been they've got so much to offer you know they're almost their own.

Brett AlegreWood: Love London to me so as the best fundamentals, you know, and yes, London is really taking off right now that actually I think London will start to take off, you know it's you know 2016 nothing's really happening in London.

Brett AlegreWood: But that will come around the cycle will turn around, without a doubt.

Brett AlegreWood: Now, the other side of it is is Manchester and Birmingham they're almost guaranteed, you know because of the fundamentals and because the amount of.

Brett AlegreWood: You know, in just the investment going is is incredible I mean I live in Singapore and just the guys that I hang around here.

Brett AlegreWood: That you know own property development businesses and things like that, and you know that are in that industry they're looking to the UK to invest.

Brett AlegreWood: You know they're not I mean they're also looking to India, which is another place, that I do here, but the reality is between India and here they don't will hear Australia they're not looking at us and not looking in Europe, Italy UK.

Brett AlegreWood: And you know that that's great because that brings in money brings jobs in you know and that really supports So yes, good news.

Brett AlegreWood: they've got a question there so, would it not be better to buy a freehold property, if you have to pay service charges and grounding look.

Brett AlegreWood: The, the answer is, it depends it, and this is this elephant.

Brett AlegreWood: Is I i'm not worried about grammar and service charge or any of those costs freehold leaseholder waiver.

Brett AlegreWood: For me, what I want to look at is what's the actual property in the cost me what's the grammar and surcharges put them in put them in and look at what you know if they can go up, and you know that sort of stuff.

Brett AlegreWood: And do you cash flow, because what you might find is that you know your freehold house is in a you know, is in an outside of the city area isn't going to get the necessary capital growth.

Brett AlegreWood: Or the yearly increase so therefore yes you're not paying those two bills, but you're also not necessarily getting the scaling up because the massive change environments, so you know.

Brett AlegreWood: I think the mistake is people say Oh, but I don't want to pay those bills and modern control those bills.

Brett AlegreWood: But then, the reality is, if you go to the places that you know, like, if you look at massive regeneration.

Brett AlegreWood: that's what's going up there, there is a power is going up there, and they are leasehold them the good news about the whole this whole thing.

Brett AlegreWood: I mean short term bad news is that actually buying you've got these long lisa's you know nine or 99 years 215 years hundred 25 years.

Brett AlegreWood: But now, they listen to change all of those over to where the you know the government's putting that in place now, now that could be five six years away before fully comes in yeah.

Brett AlegreWood: Those changes but it's all about looking at what the investment is there and invest in their parents.

Brett AlegreWood: So you know you may have a free property that's better a better deal than always help property, but you know you might have a list off of it it's better than free healthy.

Brett AlegreWood: You know that's so it's not a case of do one, not the other or I only do this sure if your strategy is only have 300 houses in a particular area fine that's your strategy right, you know.

Brett AlegreWood: That it's not a case of long not doing this because it has grounded in social you just put them in the cash flow and then you make the decision based on having more thing is there yeah.

Brett AlegreWood: cool i'm sure we'll have one more visit a better by segment property in these areas, you mentioned, as opposed to noodle when it comes to the brim yet so Needle has printing them and so that premium will generally be somewhere between 5%.

Brett AlegreWood: And i'll say 30%, the reality is if you're buying a 30% muto premium, you are getting ripped off, and you know you, you deserve to buy another.

Brett AlegreWood: Know you're probably looking at five to 15% is the difference, but you know what I can look at say you know some of the properties we've solved which might have had say 10% premium.

Brett AlegreWood: But they have held that premium over the other stuff because they're in a development and then you have these integrated communities, now that have been created.

Brett AlegreWood: So when we talk about different types of loans visit development with some of the building industry.

Brett AlegreWood: And it has no absolutely no nothing it's just you know, a building and their individual properties.

Brett AlegreWood: But then, you also have these other sites which generally largest sites that have the whole Community integrated.

Brett AlegreWood: They will have you know the Community area they'll have a gym they may have you know various asleep parks and Miss shots and commercial and things like that.

Brett AlegreWood: You know, and actually you're buying into that So yes, he must have his upbringing, but actually the fundamentals of taking care of that so it's again it's not about isn't it better to buy second hand when you go.

Brett AlegreWood: it's about one way to to up you know you've got an apple or an orange you know now you know some days, all I get some of those are oranges, you know.

Brett AlegreWood: My strategy personally is you know I didn't you build that that's, why did why because I don't want the hassle.

Brett AlegreWood: You know I want low maintenance I want no hassles for longer periods, but you know it's interesting, I have to spend 879 bucks I think it was, and I said I don't sit in on Downs on one of my properties and I was like bloody hell that's costing me a lot and.

Brett AlegreWood: The guys are like bread he bought it in 2004 you've spent nothing on it from what we can see on the system since then and I was like.

Brett AlegreWood: yeah I mean they should spend anything I hadn't done a single thing on.

Brett AlegreWood: You know, so you know so you've got away these sort of things up it's easy to pick you know bits out and said oh that's terrible i'm not doing that that's a mistake.

Brett AlegreWood: You know you got away the whole investment way the whole investment and then compare apples and oranges and sushi yeah so I don't know if you guys have any thoughts on that.

Ritesh Patel: yeah my thoughts about it both ways are going to have pros and cons but 111 point I will make is you got to do what's practical for you.

Ritesh Patel: You know, you know, in terms of what what fits into your lifestyle and what you can't go second and yeah great you know, but if i'm buying a second and property.

Ritesh Patel: it's one because potentially you know a lot of people think Second, I think I buy something a little bit rundown put some work and I value to it okay.

Ritesh Patel: Which in in in theory is great idea, but time the money the know how the resources, you need it's almost and it's a very full time job if you can do it yeah good luck give it a go, but most of the clients that we work with and I read no chance my you know i'm required.

Brett AlegreWood: To do renovations you the time to go and search taking improv is itself, you get the relationships, you have the expertise little then by all means go and do it, you know not doing it was.

Brett AlegreWood: You know, we have we have some clients who they build their portfolio and and now they've actually taught me we've been going for like 18 years you know, considering you know 17 years.

Brett AlegreWood: 17 years so some of the clients that we work that they were like in a 50 year olds and now 67 years old, and you know, and I still.

Brett AlegreWood: We still have plans for back then, you know who you know they don't buy anymore, or they bind now because they're at home and they were tired, but then other ones.

Brett AlegreWood: they're actually buying and they're doing a renovation ready just want one a year to keep them keep them out of the House, that is, the conversation I last had was that it keeps them out of the House and the wife off the banking.

Brett AlegreWood: side which has got but you know so it's not a case of you know we we don't necessarily do second hand that's not our preference, you know lavish we were a noodle.

Brett AlegreWood: agents and so that's the preference, but the reality is, you can make money thousands of different ways and property yeah my mind both Bay is that what happens is a lot of people.

Brett AlegreWood: They go do hunting and I looked for this 90 and this one here, and this one here and they just end up with a shotgun.

Brett AlegreWood: dinner party portfolio and that's the value, you know so yeah we just got another survey, as well as mentioned them so when you build offline 200 when it was built.

Brett AlegreWood: In prospect mythology could be Is this still the case.

Brett AlegreWood: yeah yes it's still the case, depending on the market, so you know the market goes up sits around goes and sits around.

Brett AlegreWood: So if you buy it at the right time, then you can write that up Nessa we try and do with the regeneration, you know what's called secret sauce because basically.

Brett AlegreWood: If we can do in an area and we get in early enough and then there's huge amounts of money and redevelopment one, then what happens is the fundamentals increase which pulls the prices up.

Brett AlegreWood: And that's where you get the 200 to 250 you know which is great you're not necessarily going to get that.

Ritesh Patel: In the secondary market, you know.

Brett AlegreWood: Not in the same way, you know you can you can have the same can, but you know the also have different timing so you'll find the noodle market will boom.

Brett AlegreWood: Then it'll slow down, and the second enlightenment take off, you know, so you know generally in that case the moodle multiple lead, and then the second hour and coming.

Brett AlegreWood: But oftentimes we go from that area and then we'll jump noodle regeneration flight to regeneration select the region, you know play that game, you know that's the strategy, you know by with all day every day.

Brett AlegreWood: But yeah.

Brett AlegreWood: cool so yeah we'll jump into because I realized, it was going to Ryan so Ryan yeah take it away.

Ryan Rahnavard: Thanks right right, so I am going to speak to you guys about once my computer decides to work about London, so what i'm going to cover off is why London.

Ryan Rahnavard: wider community belt and commute about hotspots Okay, so why London quite simply London has the best fundamentals second to none across the whole of the UK, in fact.

Ryan Rahnavard: Across the world, you know there's there's there's three major world cities it's London New York and Hong Kong.

Ryan Rahnavard: and London London gives you is and the way we talk about in and rick told me earlier, this is a bit bit bit of a cheesy line, but I don't think it is London is gold London is gold in the property, well then i'll show you exactly why London is gold for a minute.

Ryan Rahnavard: yeah so I don't know i'm going to bring you.

Ryan Rahnavard: This answers your question, to an extent as well as.

Ryan Rahnavard: Take your money and investing in in a in a upcoming country that gives you a high interest rate cash is trash, this is the power of the pound, since it started in 1209.

Ryan Rahnavard: all the way down to here Okay, but asset value on the other hand, go up all right, so if we look at here lumber, and this is over a five year period.

Ryan Rahnavard: Right, the price of it has gone up by like 43% yeah by a huge amount, but that directly links into why London, regardless of what you hear.

Ryan Rahnavard: In the media and out there, and everyone that bags off London London will always remain why will it remain because number one it's a it's a major asset class in property.

Ryan Rahnavard: it's in an area that has the best fundamentals is World renowned and it has continued investment in the area.

Ryan Rahnavard: And the biggest reason why London always remains a good area to invest in not everywhere across the whole of London you've got to be a bit selective in where you go into London nowadays as as.

Ryan Rahnavard: Effectively, the central zones of London have gone up by a huge amount of value and when you look at the rental yields worth of the purchase price.

Ryan Rahnavard: It doesn't always make financial and investment sense to go into it, however, certainly still an area that you want to be invested in because london's continued regeneration plans and.

Ryan Rahnavard: regeneration projects that keep going into the area as the city is the capital continues to grow.

Ryan Rahnavard: And you know when we started off in London, it was generally always on one and two and then three came into the picture, four, five and six and we're going as far as seven and eight, right now, as well.

Ryan Rahnavard: And the key thing behind London is this regeneration plan i've got a couple of case studies here of projects that we've got involved in in 2010.

Ryan Rahnavard: A year before I actually joined and up until sort of an eight year timeline up until 2018 which initially started off price points were 180 7000 pounds.

Ryan Rahnavard: And in 2018 it was going up to 432,000 pounds and a couple of people that are on the webinar right now i'm actually invested in this area and they've made good money from it.

Ryan Rahnavard: Similar again and kid broke as well hundred and 60,000 pounds and 330 8000 pounds now what does London give you London gives you.

Ryan Rahnavard: The option of parking your money here and over the next 2345 years you will go through one burst of massive growth.

Ryan Rahnavard: which allows you to pull your money out to go out and invest in areas like Birmingham like Manchester without totally relying on your own savings.

Ryan Rahnavard: yeah because all of a sudden one year boost in growth will give you that 6070 80,000 pounds that you require to take that money and go and reinvested in the outer sort zones of.

Ryan Rahnavard: Well, in outside of London, whether that's the Community about whether that's Manchester with us, but i'm going to leave Liverpool, whatever the other areas are which gives you slightly higher rental yield.

Ryan Rahnavard: But over the long term, what you will certainly be doing is you're going into an asset which will maintain its prices, you know, even in the harshest times in the global.

Ryan Rahnavard: Crisis in 2008 that we hit it took one year for London to recover and maintain its prices and continue to increase over the long term period as well, so what you're doing is you're preserving your wealth for the long term future.

Ryan Rahnavard: Now is a story about Wembley.

Ryan Rahnavard: And I always like to use this Wembley story, because this is a genuine picture I think Brett you took this picture on your phone.

Brett AlegreWood: This is speeches from their office.

Ryan Rahnavard: Yes, from our office we.

Ryan Rahnavard: took a picture of it from.

Ryan Rahnavard: Our office, and if you look at this picture, this is a true representation of what Wembley looked like at the time.

Ryan Rahnavard: And this on the right hand side is what it will look like, by the time that we just finished an actual fact, I was there on the weekend.

Ryan Rahnavard: And majority of this is finished they're starting to build on these these front developments over here and the area has absolutely changed a lot more full of people because of that not only put in.

Ryan Rahnavard: Houses they've also put in a box park they've put in.

Ryan Rahnavard: Student accommodation and they've obviously got the London, the Wembley designer outlet so there's a lot of football there, right now, as well, so the area is starting to change massive it's no longer just derelict like this.

Ryan Rahnavard: It is starting to look like this and what regeneration gives you gives you is a whole movement of people into the area it changes the face of the area, but what you get from it from an investor's point of views that's where you get your exponential growth, so we invested in.

Ryan Rahnavard: Wembley actually invested in there myself me and reattach bought an apartment there together in one of the first phases, and it was the only it was the last phase that they.

Ryan Rahnavard: sold off units on private cells after that that block all the other 4000 units were kept back by the developer themselves to rent out on a PRS scheme.

Ryan Rahnavard: Which is a private rental scheme, so the developer won't sell the unit they'll rent them out themselves, and the reason why developers have started to do that more now is because they themselves understand that now see.

Ryan Rahnavard: That it is better for them to hold on to the actual property then to sell it off.

Ryan Rahnavard: To private people to purchase it that the returns on their money is a lot higher and that's why as an individual investor, you will never lose out on London over a long term period.

Ryan Rahnavard: We went into these properties at 300,000 pounds and over an 18 month period we sort of flip the property on at 380 at the time to go and reinvest into another regeneration area.

Ryan Rahnavard: Now that's a live example for you what regeneration gives you, but if we were to look at just slightly outside of this and go.

Ryan Rahnavard: go a little bit further and go towards finchley road Okay, where there wasn't as much regeneration, the percentage growth in finchley road, for example, was nowhere near what we saw in Wembley.

Ryan Rahnavard: Because it was the regeneration and the impact of regeneration that gave us that growth okay.

Ryan Rahnavard: So i'm keeping it short and sweet in London, because London talks about so much, and everyone knows what it's about.

Ryan Rahnavard: The next area for us is really the commute belt and that's the area which is really coming into into play, now more so now than it was in previous years.

Ryan Rahnavard: And a few real reasons number one affordability affordability as a commuter about region.

Ryan Rahnavard: Whether you're an investor or an owner occupier, it is more affordable for anyone who earns less than 50,000 pounds to purchase their own property to live in.

Ryan Rahnavard: And to rent and there is a lot of people across the capital that whilst inflation is going up, things have gone up their way real wages haven't gone up at the same rate, so they are stuck in that bracket of earning between sort of 50 in.

Ryan Rahnavard: Between 40 and 5055 ish thousand pounds, it is becoming more and more on affordable to live in London, as an individual and i've got some numbers here for you a room to let in London.

Ryan Rahnavard: and whatever now.

Ryan Rahnavard: you've got the spreadsheet got scared and moved a room to let in London is 747 pounds.

Ryan Rahnavard: A one bedroom property on average in London is 193 pounds 1934 pounds and a to bet will set you back a whopping 2700, on average, if you are a renter okay.

Ryan Rahnavard: So that's the rental figures, the second thing the capital that you require to buy gives you more.

Ryan Rahnavard: When you go out slightly outside of London into the community about, then it would do in London, so, for example, if you've got 150,000 pounds that will get you one property in London.

Ryan Rahnavard: Just about plus our money aside, but if you were to take that into the Community belt region, you can certainly get into two investments which gives you overall a bigger percentage growth because you not only have your capital growth, you also have your rental yield.

Ryan Rahnavard: The other factor is diversification portfolio, I massively believe that you should every portfolio should be built diversified.

Ryan Rahnavard: In that you should have a London asset, you should have a northern powerhouse asset, whether it's Manchester Liverpool, you should have a Midlands asset and Birmingham, and you should have a comfortable asset.

Ryan Rahnavard: Because, as the capital growth that growth starts rippling outwards towards the major cities towards the Community bell regions and that's where you will when.

Ryan Rahnavard: When London isn't doing anything the rest of the regions are going to be doing stuff okay transport links are always improving.

Ryan Rahnavard: Research talks about the HST we've already had a lot of sort of high speed rail is go into the commute about regions like ken's like slow.

Ryan Rahnavard: And you've got the Cross rail station, the Cross role that has been built in finally when that sort of comes live that brings.

Ryan Rahnavard: Transport into the capital, a lot better and a lot quicker and renters are going to move more out words to be able to sort of commute in.

Ryan Rahnavard: and creation of employment, which is massive as well across the outer regions.

Ryan Rahnavard: Now I run through the figures of London average rents, let me go through sort of a couple of different areas I picked out so Kent a one bedroom is an average of 817 pounds a month to bed 1239 slot 948 1260.

Ryan Rahnavard: And if we compared that you're pretty much room rate so you'll get a whole apartment for the cost of a room in London okay now our key focus areas Astrid can.

Ryan Rahnavard: reason behind why ashford can is our key focus area at the moment is ashford is the largest established market turnouts in Kent it's 45 or 44 miles in the southeast of London.

Ryan Rahnavard: it's been transformed by UK is first high speed rail yeah, better known as the Channel Tunnel rail link.

Ryan Rahnavard: And that's not only for getting into London but it's also to go across into Europe as well okay.

Ryan Rahnavard: But the biggest reason the number one biggest reason that why asheville is the main focus area for us, is this the ashford international studios which has been built up it's a 250 million pound investment I believe it's like 160 square meters under and 60,000 square foot of redevelopment.

Ryan Rahnavard: it's going to create 2000 jobs in the area and it will triple the size of ken's TV and film industry.

Ryan Rahnavard: netflix Amazon HM HBO are the companies that are going to have studios there to develop film and boost it out.

Ryan Rahnavard: And, as we know, in today's world of streaming and sort of technology that's come into it, that is a massive industry that is continuously growing every single day okay some stats on Kent.

Ryan Rahnavard: Average residential values up 45% over the last 10 years and 50% over the last five years, that is, without the biggest regeneration project going into ash but it's already seen increases.

Ryan Rahnavard: As I said, the reason why that increases being is more and more people are being priced out of London and moving outwards and London has been taken over by the new tech world.

Ryan Rahnavard: by people who are earning the higher wages and i've taken over the the supply of property, so they are having to step outside of London okay house prices in ashford are amongst the most affordable in the southeast 39% lower than London.

Ryan Rahnavard: Employee costs are 28% less than London okay 22.5% population growth over the last 15 years 38% growth in ashford and prime industrial rents okay.

Ryan Rahnavard: And if we look again graph I love I love graphs because it shows you sort of you know where you were what historically it has done, and whenever I hear questions about.

Ryan Rahnavard: You know, property prices are going to drop off the cliff and you know it's over inflated and prices are going to draw I always go back and show them the graph and say okay.

Ryan Rahnavard: Show me a period where you thought property prices should have dropped and i'll show them the graph and it shows the complete.

Ryan Rahnavard: opposite to what their thoughts and feelings were because the reality is the more money that gets printed, the lower the value of the pound, the higher the value of assets assets is what is what's going to sort of.

Ryan Rahnavard: make you survive over the next 510 15 years, and you can sit there and say to yourself i'm going to wait i'm going to wait for this incentive to end because I think the prices are going to drop.

Ryan Rahnavard: A lot of people have that same thought, but what happens, nine out of 10 is that incentive will change and prices, instead of dropping jump up 10% why because the savvy investor, who is.

Ryan Rahnavard: made a lot of money through the stock market because the stock market is just had its bull run.

Ryan Rahnavard: they'll take their money and they'll pocket in an asset like property which preserves that wealth and that's where they'll see prices jump up 10 15%.

Ryan Rahnavard: And, by the time you will have it as human nature, by the time you look at it, you black eyes too late too late, let me wait a little bit more jumps up again another 10%.

Ryan Rahnavard: That stage you'll think to yourself.

Ryan Rahnavard: may have missed it again, let me wait jumps up five side you know what I keep getting along and let me go in that and you'll go in, at the height of the market and what happens the year after it will drop.

Ryan Rahnavard: And then you're the one that will sit there and give the horrible story all property I lost my money by 5%.

Ryan Rahnavard: You know 10% because you didn't have the understanding of knowing that i've got to just keep investing whenever my capital is ready.

Ryan Rahnavard: Good right, so the project that we're looking at in but in ashford is by a developer called King present home.

Ryan Rahnavard: founder and director of a combined over 14 years experience experience in developing both residential and commercial developments across England.

Ryan Rahnavard: The developer Internet did livid in excess of 300 million in real estate development and construction across the UK manage active real estate portfolio into the billions i've got a couple of their project of their projects that i've got here.

Ryan Rahnavard: The couple works in Birmingham great projects were involved in that as well.

Ryan Rahnavard: New school house in Birmingham weren't involved in that one and then you've got the stratford village in London, as well, and we all know what stratford done as an investment, anyone who purchased a property in in in stratford in 2012 2010.

Ryan Rahnavard: made a killing they probably bought the property for peanuts and sold it for absolute ridiculous prices you're buying properties for about 180 hundred and 90,000 pounds.

Ryan Rahnavard: Today valuations of 450,000 pounds plus our project is right here in the Center next to ashford international minutes walk away from the film studio that I spoke about earlier.

Ryan Rahnavard: And that film studio the reason why i'm so big about, that is because not only is it going to bring employment into the area, it is also going to bring another level of prestige to an already pretty prestigious area.

Ryan Rahnavard: and that in itself will invite more people to move in there, not only to rent but also to purchase so if we're looking at the short term view of the property from a rental points of view, means low avoid period properties rented out longer period for longer periods of time.

Ryan Rahnavard: Secondly, the rents will increase as more people move into the area and long term longevity of the investment if at any point, you want to exit out of the property, there is a massive owner occupier market that will take.

Ryan Rahnavard: Take that property on, and you will have major capital gains and realize that okay.

Ryan Rahnavard: Where do you start.

Ryan Rahnavard: Okay portfolio management structure strategy and plan and let's run through a project in full detail look property is not a one size fits all for everyone, everyone has different strategies Brett mentioned a moment ago, you know your strategy might be.

Ryan Rahnavard: sort of second hand houses and that's fine that's your strategy, but one thing I can almost.

Ryan Rahnavard: say with absolute certainty is a lot of people that start off in property or have bought a property or lived in a property rented a decided to rent it out and move into another property.

Ryan Rahnavard: What they didn't do a sit down and and put together a plan that works for their lifestyle Okay, and this is where property fits in.

Ryan Rahnavard: This is where you go wrong as a property investor you don't sit down and do the the grunt work at the beginning, which is the administrative work of putting down your strategy and your plan.

Ryan Rahnavard: 90% of investment in property is administrative work of understanding the market understanding what your plan is and moving on to.

Ryan Rahnavard: The other 10% which is finding the right investment and what we do at glad fishes we help you put together a strategy, a plan to go and do your investment.

Ryan Rahnavard: We provide you all the tools that you require to make that decision with absolute certainty.

Ryan Rahnavard: To move forward and grow your wealth over the long term period, so what you've quite simply need to do at this stage.

Ryan Rahnavard: Is booking time with a portfolio Director or pick up the phone and call us to go through a strategy to go through some questions.

Ryan Rahnavard: run through a project, let the guys run you through cash flows talk about your lifestyle and where you want to go, so they can formulate everything for you and provide the right investments that work for you.

Ryan Rahnavard: get in touch and start taking action today don't let inflation get rid of all of the cash that you have.

Brett AlegreWood: It goes.

Ryan Rahnavard: I rambled on.

Brett AlegreWood: Now we have a couple questions so if you have any more questions Adam in now, and we will come to them and say.

Brett AlegreWood: So one of the key things.

Brett AlegreWood: i've actually been spending the last few weeks it's really revamping our entire marketing and one of the one of the things I realized about the whole process is.

Brett AlegreWood: That the one of the things that shifts me that the industry is a French.

Brett AlegreWood: Is that we're so focused on property and deals, and you know, every week is a new development and every.

Brett AlegreWood: At actually for me what what is much more important is it is a strategy in the portfolio management all those aspects we do, and I understand when we do everything for you know the whole idea is.

Brett AlegreWood: property investment effortlessly done for you yeah and really that is the test, you can put us to.

Brett AlegreWood: Is you know we're doing everything for you now, obviously we can't sign documents and things like that, but I think the important thing is.

Brett AlegreWood: we're not about giving you hundreds of different you know, ideas and saying hey we got this or have the pitch this pitch this pitch this, which is what most people don't get the thing with us is about finding that one great property idea.

Brett AlegreWood: yeah and what I mean by that you have your individual goals you've got individual circumstances you've got you know what you want to achieve in that so when we understand that.

Brett AlegreWood: We can then look at the market, and we can take that with the current market, I mean look at the areas and that you know and add the regeneration and when we pull us together.

Brett AlegreWood: We can then give you one great property idea, because if you get one right property it and it works well for you and that increases in value, you can then get your second poverty.

Brett AlegreWood: And then you do that that's you know your second right ID which is you know another great.

Brett AlegreWood: And if you repeat that, over and over again that's how you build a portfolio these days.

Brett AlegreWood: You know, when we first started, we start you know building your portfolio from zero to 10 properties used to be a model yet.

Brett AlegreWood: And we would just pop out 10 properties pretty quickly, because actually the market was increasing then jsc then austerity followed up.

Brett AlegreWood: You know GMC wasn't so bad that's that happens every 10 years Okay, the problem is, is that then had of staring now that really screwed the whole market, you know.

Brett AlegreWood: So, but the whole idea is about getting that one right idea.

Brett AlegreWood: And that's about sitting down with the team and discussing the mind mean you have to go through a couple of capitalizing couple of different you know jubilance you know.

Brett AlegreWood: Research and that and kind of look at that and get a real understanding the numbers, you know it's not about Russian unfortunately a whole industry is about pushing you into whatever is on the table for this week.

Brett AlegreWood: yeah that's not how we play the game yeah so you know intelligent a chaplaincy and yeah and work through and work out what that one great my dear is.

Brett AlegreWood: It because, once you get that then actually everything else falls into place and to be fair, we do all the rest for you yeah we manage we.

Brett AlegreWood: Know right mortgages solicited you know who put together always whatever it is, needs to be done will organize it for you, you know.

Brett AlegreWood: licenses we can help you apply for we know so all that sort of stuff can be done, you know but yeah so bring it back to the final question so.

Brett AlegreWood: Does the graduation discount offset some of the premium or noodles, but it does yeah you know so so that that's an element, the whole thing.

Brett AlegreWood: out the smallest base and we go to develop that and by you know, taking both we might take Bible 10 or whatever element dolgin will give us an off market.

Brett AlegreWood: Price okay.

Brett AlegreWood: So our prices on a lot of the website, you know, and if you do see prices this generally that's the grocery price that they're putting on so while moving you know developers website.

Brett AlegreWood: We didn't negotiate a fee of them Okay, which that's generally the business model, but it changes.

Brett AlegreWood: Because some stuff it's really, really good you know we can't get big discounts on you know some stuff we get big discounts on this might be the last in the.

Brett AlegreWood: You know the the bachelor phase and whatever might be very early on that we're getting in you know, so the developer wants to get a few things to secure the funding.

Brett AlegreWood: So yes, and the model will change but yeah that that generally is, we will get a discounted price, you know off the development.

Brett AlegreWood: Other areas left, none of which is still to be regenerated hundred percent you know, right now, the focus, I mean if you go back 10 years.

Brett AlegreWood: Our focus is on the east, you know east and south southeast now we're sort of moved to the West.

Brett AlegreWood: yeah but that doesn't mean that actually when i'm still looking Nice, there is a nice day got barking you've got you know, like aspirin you know, interestingly, we we will, I think, was 2014 we saw what was called the panorama.

Ritesh Patel: You know.

Brett AlegreWood: You know so and.

Brett AlegreWood: they've gone up in value in actually you know, without the development of that was there, if you go to the other side that's where the panoramas you know who the seven.

Brett AlegreWood: So it's not, this is not an area we haven't with me with this error, you know, and that is just one for you individually that might not be the property here.

Brett AlegreWood: Yet, but chaps the team, and they can work out what is the best option for you, it may be, or you know what now's a great time to get back in London, because London is quite slow, right now, but when it takes off it'll take off quickly.

Brett AlegreWood: And our briefing is going to happen to you know reference might happen soon ish yeah certainly once we get clear of that once we clear the the code.

Brett AlegreWood: One of the aftermath, you know as long never been so supportive and so long, you know as because it breaks, it is, but yeah but other ones real time was the coffee service to service depends on.

Brett AlegreWood: This various stages, they some some of the property you pay a fee Okay, we if we're a buyer's agent then it'll be if we're estate agent.

Brett AlegreWood: Then generally the developer will pay the fee, so it depends on that how that how that's done management fee will depend on what your wants and in through including and, if you want guaranteed rent if you want, you know.

Brett AlegreWood: If you want like rent and legal trapped in the load those two things.

Brett AlegreWood: So berries.

Brett AlegreWood: Okay, but, to be fair haven't had the same name go through, let me show you one of the things we are very upfront with all of that stuff so we have a two year cash flow that has all that stuff on there.

Brett AlegreWood: And you can adjust it to make your perfect claim yeah you know unfortunate that's one of the bad things about the industry, the industry give you a one page.

Brett AlegreWood: absolute rubbish cash flow, so you don't get a good idea what the things actually across you were very different minimum capital this with Ashley to be found.

Ryan Rahnavard: On not familiar at about 37.

Ryan Rahnavard: K that a.

Brett AlegreWood: Very simple.

Ryan Rahnavard: start off with you yeah.

Brett AlegreWood: um any other questions guys any other comments from you.

Ritesh Patel: know I mean what i'm hearing is you know if you if you're at a stage where you know you could be thinking about it, and now you've probably looked online and.

Ritesh Patel: So much comes flying at us an absolute blood in maize.

Ritesh Patel: And the first stage for me is to find the model that works best for you find people that you think you're going to enjoy working with.

Ritesh Patel: You know, and these days, I think you know, once you sit down with someone or zoom meeting you know, whichever way you do it, you can very quickly, you know.

Ritesh Patel: work out Okay, I like these guys are like their style I like their approach versus i'm not sure I mean these guys work and find those people, you know.

Ritesh Patel: Of course I hope it's us, you know but spend that time to work out if it is us, and if it is, then, you know get a plan in place and never be afraid, or to ask.

Ritesh Patel: Any question you know, whatever it is, I feel the clients who have.

Ritesh Patel: yeah I mean I mean i'll be there, like since 2009 when I look at my clients who have built the biggest portfolio, since then, you know, the ones who have gone into double digits.

Ritesh Patel: They will never afraid or of asking me a question or two cents me right, I think that's bullshit yeah and I will not brilliant man oh we've got a relationship.

Ritesh Patel: You know so it's sort of be you know you wouldn't be that person work with someone get that relationship, transparency and you'll be good.

Brett AlegreWood: yeah I think guys, the other side of that coin is.

Brett AlegreWood: You know, moving on 17 years we've been doing this same thing for 17 years so we've been through the ups and downs in the ups and downs, and the ups and downs again.

Brett AlegreWood: You know so we've seen it and in the strategy holds them a lot of people sit there and go of their strategy it works in the mind goes up it's like that's not true yeah.

Brett AlegreWood: that's you know it's so easy to pick you know little bits out of this is our that doesn't work.

Brett AlegreWood: Actually that's not true, you know it's interesting because you know we talked a little bit about you know new new clients and then there's there's a lot of new guys on still.

Brett AlegreWood: Which is great, you know and by all means get into the team, but the other side is that is existing clients who have been around for you know and see there's you know, one of them died must be a decade, at least, you know.

Brett AlegreWood: and actually some of that property hasn't hasn't done fantastic without you know, has doubled in price like it should have and it doesn't download them.

Brett AlegreWood: And so you could be forgiven thing, are you know what i'm just going to wait around no don't now's the time and that's why i'm saying you austerity is over.

Brett AlegreWood: brexit is over all the stuff that's what i'm talking about this Dome day type.

Brett AlegreWood: now's the time if you've been sitting there going, you know what it's only got 100 grand or you know hundred 50 grand master money sitting down and working and how you can use their money yeah.

Brett AlegreWood: You know, but this or I might feel that you've been watching the first thing I just want to get in touch probably 10 years long enough to like.

Brett AlegreWood: You know it's like well, I mean look our strategy is not changing our you know our approaches and changing nothing's changing we continue to do.

Brett AlegreWood: Just as we have done, you know in like we've been doing this, since 2004 in the UK and i've worked the same strategy.

Brett AlegreWood: in Australia in before that you know from 9098 you know, one of the you know started all I was doing mortgages in Australia, but it was still you go mortgages that that was the special do it so yeah.

Brett AlegreWood: And there's one more question here so it's better to buy a new build in a small building with less apartments with less.

Brett AlegreWood: As when online large new build of hundreds of pounds.

Brett AlegreWood: Okay, so Is it better to buy small small and you build in a small building or logical.

Brett AlegreWood: effect effectively democracy, right now, you know what we're reintroducing our six week delay guarantee no words basically if we can live in six weeks we'll we'll pay the rent until we do.

Brett AlegreWood: So we're in the process, for instance, I might be a month or two before I did all the detail and worked out, but that's part of the new marketing this whole rooming.

Brett AlegreWood: omri issue now, because you know what we have never ever had problems renting the property anywhere that we have.

Brett AlegreWood: It you know we're just done so, so the reality is renting something yeah we can do it now, I know people would have to wait three months, in actual fact, we just had a.

Brett AlegreWood: You know, a friend of mine had had it on for months with another arm a large London agent four months ago sitting around yeah.

Brett AlegreWood: And you know border on with us and we had something three weeks yeah and that's because our approach is very mathematical it's very you know, methodical.

Brett AlegreWood: And we've been doing it so long, you know I train the team to do things is one plus one equals two or three plus one equals four you know but but, basically, you know.

Brett AlegreWood: Everything is methodical everything is already done it's proven without for many years, so there's nothing that we're going to be doing for you or now in the market that we haven't already done.

Brett AlegreWood: No whatsoever billion pounds of property yeah I will billion pounds that's not.

Brett AlegreWood: Even if sometimes they are your top leader, you know and the month that the strategy it had nothing changed.

Brett AlegreWood: yeah sure the the mortgage situation has changed a lot of stuff has changed, you know what our approach to it hasn't changed.

Brett AlegreWood: It does take one out and build a bigger portfolio, because you eventually when you very quickly run out of capital, so you need to the properties to go up in value to pull that capital APP and so you know rinse and repeat it, but yeah.

Brett AlegreWood: Any other questions guys unconscious we're just going over a.

Brett AlegreWood: 90 minutes but yeah, thank you for staying on board, and I look and I can't I can't stress enough chapter, the team now's the time to set the Foundation now's the time to get a strategy right plan right work at what your goals are.

Brett AlegreWood: If you haven't done that can do it, you know so important, because now we're starting to get back to what is a no luck.

Brett AlegreWood: yeah, which is where property does go up because the supply and demand isn't being constrained by the government, you know I mean, I have to say, you know i'm impressed by the government run down very happy yeah it made all the right moves, you know so yeah.

Brett AlegreWood: But i'm good guys well if there's nothing else i'll let you get out to that sonny that and see the sun on now right he's a.

Ritesh Patel: chef that.

Brett AlegreWood: it's gone in the Doc now.

Ryan Rahnavard: That is me I can I can hear the pub outside.

Ryan Rahnavard: that's the truth isn't in a bit exciting.

Brett AlegreWood: guys.

Brett AlegreWood: Thank you so much for joining us and I really appreciate it.

Brett AlegreWood: can get in touch glad pitch.com you know core team i'm sure you've got emails that you would have from day the chat the team get that plan get everything in place really questions answered.

Brett AlegreWood: And you know you know if even if you're not ready to invest, right now, you know, the capital city near you don't get that plan in place and get that certainty.

Brett AlegreWood: Because actually when you get your head straight around this you'll be surprised at how those opportunities will come.

Brett AlegreWood: In and you want right property idea away from yeah you put follow you know and really getting you know you should squared away excuse the French.

Brett AlegreWood: You know that pension plan in place that gives education paid for that whatever it is for you, you know the property can do for you yeah good alright guys well, thank you very much appreciate it and we'll we'll chat soon.

Brett AlegreWood: See you guys bye.

Ryan Rahnavard: guys bye bye.

Thanks bye.

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