UK Property Rant Podcast – 9 Nov 2022 with Brett Alegre-Wood, Himansu Joshi, Ryan Rahnavard & James Cox

Brett Alegre-wood
November 9, 2022

Full Transcription

Brett Alegre-Wood 03:17
Okay, so Hey guys, welcome to the new livestream podcast version for 2022. So today we've got, well, the couple of boys from glad fish. And so basically we've got Ryan renovar, who's lashing fatale you guys do your introduction. So we've got Ryan with him and Sue and James. And yeah, we're going to discuss property, UK property, the property market, everything property. If you're coming to us from whichever stream we're on, then feel free to type messages in to the chat, we can answer the questions. But apart from that, we're going to be having a chat. So sit back, enjoy, and we'll get started. But you guys I just want to give you a quick introduction to who you are what you do.

Ryan Rahnavard 04:01
I'm Ryan, I'm one of the associate directors in the business. I've been around for just over 10 years now. I assist investors in building a long term portfolio and yeah, my my day to day job is to speak with clients existing new ones join in on expanding their portfolio and really going through sort of building their long term pension plan through property.

Brett Alegre-Wood 04:28
Cool. And how about Matsu

Himansu Joshi 04:32
Yep, so my name is Himansu. been in the business now since 2014. Again, like Ryan, I speak to new clients, old clients just trying to understand what their goals are, what their timelines are, and then try and help them come up with a strategy and a plan to help them execute those plans.

Brett Alegre-Wood 04:52
And James,

James Cox 04:54
yeah, and pretty much pretty much the same as the other guys I've ever been in the business now. I think it's just under seven years aside, in 2015, I was actually brought on board and headhunted by an existing member of staff who obviously saw the the knowledge and the talent what I could bring. But, ya know, my my role very much on a day to day, you know, sitting down with clients talking all things property, looking at the market, coming up with plans and strategies, and obviously, matching that to current market conditions. Yeah, and obviously, very much the role is not just at that stage, it's an ongoing process. So, you know, with a lot of clients, you you end up spending a lot of time, especially on weekends, and, you know, all sorts of hours of the day speaking to them working through things. So yeah, it's very hands on, but it's also very rewarding at the same time, especially when people come back to you. And they say, Yeah, you know, he made me made me a bit of money there, James. So thanks for that.

Brett Alegre-Wood 05:54
Yeah, cool. And, of course, myself, so Brett Lockwood, I've been in property business for about probably more than 30 years now. And yeah, so we, as the business as a whole, we've run about 1200 properties, we manage them, do everything for our clients from paying bills through to everything. And the whole idea behind it is we work with clients to build their portfolios, build a strategy, and do pretty much everything they can. And obviously one of the big things we'll be talking about today, and I just realised that I've stuffed my four part thing into let me just sort this out. So we've got all the boys on again. There we go. And actually, it's got the wrong. You know what, sorry, guys, I just realised, so you will have a few technical issues, no doubt today, because this is the new software we're using. But ya know. So effectively, what we one of things we do is we do everything for clients. And basically, that involves strategy structure, or sourcing, property research and property. And I guess what we want to do on a weekly basis now is really just guide you through the next 12, eight months, you know, two years, which is likely to be going through a recession, and likely to be going through increasing interest rates, increasing inflation, and all these sort of things, which, you know, for most people, if you're uneducated, or you're starting out, you know, would mean that you just stay out of the market, and you live in fear. But if you understand what you're doing, then you realise that now's the time, as they say, be fearful when others are greedy and greedy, when others are fearful. You know, and so we'll just be discussing what our thoughts are, what our experiences are, what the experiences of our clients are, I guess that's the big thing. So I guess, you know, why don't we start off? I mean, we've got lots and lots of articles and things like that we can discuss, but what's your general take on? Let's start off with some politics just for a bit of fun of it. What's your feelings on the current state of politics in the UK? You know, so who wants to kick off?

Himansu Joshi 07:54
Well, I'll start off, then. I mean, I guess from people looking outside looking in, probably think he's a bit of a mess. I was in the Philippines a couple of weeks ago, and I was outside having a drink and speaking to two people, one guy was from Malaysia. And he just started laughing at me when I said where I was from, and said, our country is a joke. I had to remind him of the prices in Singapore to let him know and how new Malaysia is, well, how the prices are going up there. And inflation is a global thing. But you had to agree, there has been a bit of a joke. I think a lot of people have been disillusioned. And not just in the UK, I think globally. You know, you've got such parties and politics right now you've got people on the far left, and you've got people on the far right, and everything you're reading is so extreme. I think what people seem to forget is most people sit in the middle, why they like a bit of stuff on the left and like a bit of stuff on the right. So from a UK perspective, that Rishi has come in now and for being Asian myself, everyone's like, he's the Saviour and he's gonna come in and save it. Let's see. I mean, like, he's from an economic point of view. He sounds better than Liz trust, and he's a lot better than Boris and Boris. So I feel that he's, there's going to be some tough times ahead. But he's going to put in things to help us bring inflation down and obviously try and grow the economy.

Brett Alegre-Wood 09:12
So yeah, I have a bit of a diff. I mean, I kind of get what you're saying there. But I actually disagree from the perspective that I think number one is lose trust. I think that both tied with the same brush with that trestle. Rishi was in there. I think he's part of the billionaire class. And I think they're both, you know, looking after themselves. And I think everything they're doing now in politics and across politics. And this is not just in the UK, we see this in most countries, certainly in Australia and the US. And I think he's part of that class where he will look after him and his buddies. And so, you know, the question really, I guess is how do we as you know, everyday investors, you know, make the most of that take advantage of that. Avoid the down you know, pitfalls of that. Because are they going to be economically sound? Well, you know, at the end of the day, if they could make a buck for themselves and their buddies, you know? And that may sound pretty, you know, negative. But I think actually, that is the reality right now is, you know, if if you, you know, when I learn economics at school and at university, you know, it was not like it is now economics was a pure science now economics really is politics, busted or economics bastardise with politics always, am I allowed to say bastardise? I probably am. I'll get in trouble by the monetization with YouTube. Anyway, that's one. What about you guys, any any thoughts on that?

Unknown Speaker 10:35
On the political side of things, I think the political side of things is probably where it's always been, it's just gets highlighted more, when you've got the power of social media, and so on and so forth. They're all, you know, you'll find all their policies virtually as you separate it virtually, they're, they're about the same and always looking after himself. And I think, from a property investment point of view, whilst you've got to keep an eye on the political side of things, and where it's going, and sometimes gives you a good indicator of which way to go. I don't generally like to feed too much into the political side of things and making my investment decisions, because there's always unbind that investment for the next 1015 20 years. I'm not buying it for this four year term with this two year term of this particular Prime Minister, the next prime minister that comes in after it, whether we've got a Conservative government, the Labour government, ultimately, life goes on and things, you know, will always seem worse than what they actually are in reality. Even if we're looking at sort of all the sensationalised figures that come out about you know, property prices are going to drop if if the Labour government comes in, and if the Labour government comes in, this is going to happen, or that's going to happen. It is all a guessing game. But ultimately, what it comes down to is the fundamentals of property in the UK will always remain the same the lack of supply the massive demand for for property. And the other solid things that we have, you know, your your guy who laughed at you over in when you were at the Philippines, mate, let's not talk too much about their politics. Glass House kind of situation, ultimately, you know, we have always been solid. As a country, we might have a bit of turbulence right now. But we'll always have turbulence. But ultimately, as a country, it is pretty solid. From all aspects. James,

Brett Alegre-Wood 12:31
any thoughts? Yeah,

Unknown Speaker 12:33
I mean, just on the whole sort of political circus element of it, I think we as a public will be kind of quick to forget the period of this, Liz trusts power in, I think what she did on what, you know, a lot of her mandates and more of the policies that she wanted to introduce sounded great, you know, to the, to the average Joe kind of person. And I think in terms of getting out the votes, that's what people wanted to hear. But in reality, it was never what was needed, especially from an economic standpoint. You know, and, and the sort of monetary policies that they were talking about, sorry, fiscal policies they were talking about, were sort of completely at odds with what the Bank of England are trying to do, which is naturally trying to curb inflation. And then obviously, we saw how the markets reacted to it. And it was just for a want of a better word, a big, a big storm. So I think, now we can only see what Russia is going to do. You know, as every politician, does, they talk a big talk. So we'll have to wait and see. See what happens.

Brett Alegre-Wood 13:39
Yeah. And, you know, I think with this whole thing, you're right, I actually, we've been kicking the can down the road for really, since, you know, the last of the global financial crisis, I don't think it the world necessarily did what we normally would do, which, you know, we would have a drop, and that drop would then be built out from what we did was we printed lots of money, and we sort of kicked the can down the road, and we kicked the can down the road when we had COVID. And I think that is unfortunately, to some degree, we got to pay for that now. You know, and so that could be really, really bad. It could be you know, extremely bad where we ended up in a three or a four year or five year depression, a deflation or lesser stuff. I would like to think that we're not going to go that bad. I mean, the problem we have I think with anyone right now is it doesn't matter what stats you look after, you know what you look at what you believe, you can get the evidence to prove that you're right, you know, that we can recover from this or we're gonna do a massive depression and knock it out. And what's the only thing is going to pull us out as, you know, world war three. You know, there's there's the evidence for everything. So the question is, where do you sit, you know, and unfortunately, the best you can do is An individual is looking at your own situation, look at where your properties are, or art, you know, and work out how you can make money and secure your property. You know, and I think the unfortunate reality is, is we're not all going to go out there and buy 10 properties tomorrow, not that we can anymore. You have to play a bit of a conservative card because things could get worse. Things could better. James, you look like you're, you're going to bed. Yeah, but what's your I mean, you guys obviously chatting to all sorts clients, a lot of our clients are, you know, their career, you know, professionals, they're educated, you know, they're busy. What, what's the conversations you're having around the recession? And what's the, what are the fears that are coming out of them? Or what's their big concerns you think?

Himansu Joshi 15:55
I mean, for the clients that I've spoken to Brett, what I'm hearing more and more as, especially with everything that's in the news right now, about rising interest rates, inflation, recession, people are some people, some people are quite scared, they're in the camp, I'm not, I want to wait and see what happens. Whereas you've got some clients that are like, that, lived through this before, you know, through global financial crisis through Brexit, through COVID. And I've seen what property prices can do. And if I'm buying for the medium to long term, and I've got the capital, my job is safe, you know, then they the ones that will jump in, is those that I think are a bit scared of, is my job safe? Have I got enough money to support my family through all this? And they're the ones that are getting massively affected by the news?

Brett Alegre-Wood 16:43
Yep. Yeah. And I think that's interesting, because that's one of the things that we often talk about, in our own portfolio, strategizing with our clients is, you know, if you want to work out, I think a lot of people are having these conversations around, you know, interest rates, inflation, you know, all that sort of stuff, you know, which is totally natural. But the thing I find with the guys that I'm speaking to is that they're coming to us to do a portfolio review. And they're sort of I'm worried about inflation, I'm worried about interest rates, I'm worried about these things. And I also doubt and I'll go, right, we'll send me send me a spreadsheet, obviously, we have portfolios, spreadsheets, for our clients, where we have their values and their mortgages and their rents and their, you know, and it's the Excel spreadsheet type thing. And it's not until we sit down and do the numbers, that they actually get that level of confidence. And I think that's one of the big mistakes that a lot of investors make is they listen to the news. But without actually punching the numbers in, they believe, you know that, or they've got that fear around how they're going to react and how their personal circumstances were actually some of the quote, I mean, I was looking at one of the clients the other day, you know, and then made over a million pounds. And actually, they're sitting quite pretty, whereas I've another one, who actually has, you know, she's going through medical treatment right now. And she's really concerned because if interest rates keep going up, she's going to get to the point where she's got lots of equity, but she hasn't a lot of cash, you know, so everyone's different. And I think the important thing is, rather than listening to the news, and fearing that, listen to the news, and then go, Okay, let me have a look at how my portfolio numbers really stack up. And I think that sort of next level of detail, that's something we do very well. But I think we can also take for granted that sort of thing. I don't know have you had flight review client reviews and things like that, that you're doing it that's the same? Yeah,

Unknown Speaker 18:35
we've had a for you know, a fair few client reviews naturally, as soon as the interest rates went crazy on that, that day, that day, where everything just all of a sudden went from three 4% up to about seven 8% I think mortgage, we had I think we had an overall number of five or 600 mortgage applications pulled so on the day after that they have the aftermath was was literally sitting there and trying to calm clients down from wanting to sell the entire thing off and everything I think what I found is, is there's a lot of scare, sort of scare tactics and stuff being being chucked out there into the market from from a lot of different angles. I don't know what the ultimate game is from from people doing that. But very quickly, as soon as you make people sort of sit down and they understand that let's zoom out for a minute here. Okay, let's shut out all the white noises that is coming out from the media because ultimately in today's world, the extremes of either side is what people want to do to get those clicks and get those cells in of Ghana you know everything's really bad or everything is you know, super good or whatever. There's there's no objectiveness here of Ghana, okay, this is just an economical cycle. This is what will happen. What we've been going on about breakfast for the past. You know, since since the companies started the property cycle, things are no different than they And then it was 10 years ago than it was, you know, 15 years ago, and so on and so forth. Ultimately, that cycle is just gonna follow itself. And once we've sat down and zoomed out, all of a sudden, they've realised what actually yeah, I'm not that bad. Now, yes, some properties are going to see a bit of tightness over the next couple of years. And we just have to plan and budget for that just this, you know, just for the for, you know, as you would anytime, you know, you have to plan for certain situations, that's why we massively sort of push you towards having your cash flow set up the right way, having your systems in place, so that, you know, if this sort of market comes up, what do you do to counteract it? Well, look, actually, if my interest rates goes up to 6%, you know, when I bought this property, the guy's done a cash flow for me. And then I'm mortgage cost averaging said, Okay, interest rates are currently at 2%. But let's not calculate a 2%. Let's calculate at 5%. And what does that do, that leaves you a buffer to keep aside, so when we hit a specific market, this specific time that we are in, you're able to keep hold of that property, because all you got to do is hold on for dear life, write this out over the next year, maximum two years, and if it lasts beyond two years, then property is the worst, you know, the least of your problems, we've got much bigger problems than you've got. And you just just write that. And that's pretty much the conversations I've been having with a lot of my clients. I mean, I manage over 456 clients, and clients I've got, so every single one of those, those clients, you know, that conversations that I'm having with them, it's constantly reminding them guys, Zuma, Zuma, Zuma, step away from it, or block out, you know, you know, go into your little bubble for a minute, and think that none of this is going on, and just zoom out and see how the how your portfolio is doing, I forget everything else, and see what journey has gone through, see Brexit, see COVID? Some of them, you know, actually purchase previous recession. So, you know, see how it's gone on? Why is it going to be any different? Because the mentors have not changed?

Brett Alegre-Wood 22:22
Yeah, yeah.

Unknown Speaker 22:24
And I think that's it just on that topic of, you know, talking about zooming out, I think, especially for the last 12 years, people have been quite spoiled in the sense of interest rates have been low for such a long period of time. You know, and actually, that's not normal for it to have been as low as it has been, you know, obviously, a huge part of that was because of the, you know, the 2008 crash. And obviously, we know that whenever they want to stimulate economic growth, you know, interest rates fall, and so on, and so forth. But that was never meant to be that long. And I think people are kind of sitting there thinking I would have been on two and a half to one and a half percent interest rates for so long. But the reality is, you know, I think those days are gone. And I think eventually, when we do come into the picture of okay, inflation starts to get, you know, it starts to become curved. And it goes to that sort of two, three, maybe percent marker that the Bank of England needs to get to, you know, I think for four and a half percent interest rates going forward will pretty much be the norm. You know, and that's kind of setting that expectation to people. Maybe if they're existing investors, and they've already seen those periods, it's easier for them to, to understand, but certainly for new investors who aren't used to this current situation, that's something that, you know, we will obviously sit down and explain to them

Unknown Speaker 23:44
do you find, do you find your like, a bit of vindication, if you like, from what's going on now, in terms of remember, before we obviously start this argument with people between cash flow yields, rental yields and growth, and how we've always gone on about, you know, focus on the growth, the growth is where your real money? You can you can to an extent, bank on if you bought this investment for the next 10 years, and we always had to fight these people that said, no, no, no yields, yields, I want 7% 8% yields. I want 9% yields, how's your yields looking now with 6% interest rates? You know, do you feel a bit of a vindication when when you see these sort of things come up and say, haha, was right. growth, growth, you can't take that away from me with 6% yield interest rates,

Brett Alegre-Wood 24:32
I think the other thing is to I mean, if you look at, you know, the three plus one playing book, one of the concepts we talked about in there is is the mortgage cost averaging. And that's that 6%, you know, and so 6% is recognition that it may go above that, because that's the pay rate you're gonna be doing. So, for a lot of us we're not even at 6% yet. I noticed some of my mortgages, northern rocket medicine, pumped up their mortgages. They're making a massive margin now, but they're busted. So you know, so but anyway, but yeah, I mean, the reality is we used to do 6%. And that has been all. In fact, I remember when we first started selling in the UK, if you wanted to buy a London property and leverage it up to, you know, 85 80%, you actually putting money in, and I remember selling stuff in central London with the cost each month on the cash flow was about 350 pounds out of your pocket, because that was actually your funding, Matt, but you're getting tremendous growth, you know. So we're kind of heading back towards what I just saw as the normal market in Australia, in Spain, in most of the places where, you know, the face changes, but in certain phases, you're you are substituting the cash flow, potentially, you know, now, a lot of us aren't there yet. We may get there. And some of us I think, are already negative. But I think a lot of the I know that I've done four or five meetings over the last few weeks. And those meetings, in almost every case, the perception has been they're losing money now. But the reality has been not yet. Yeah. Because they were thinking, Oh, my rate must have gone to six or whatever. But it hasn't actually gone there yet. You know, so yeah,

Himansu Joshi 26:17
that's I'm just I'm just done that, obviously, with inflation and stuff and stuff like that. You've obviously seen rents going up as well. Right. renewals are coming up now. Have you seen a massive increase in rents?

Brett Alegre-Wood 26:28
Yeah. Look, we've seen anywhere from sort of five up to 30% increases. Now the challenge we have right now is that it's all great to say, you can you know that the market has gone up 30%. But if you're an existing tenant in there, that tenant who can afford X amount, all of a sudden, if you say your rents now 30% More, they can't afford to move this, and this is where inflation is the greatest thief around, you know, because what that's effectively doing, you used to be able to live here, but because now the rent has gone up, your your income hasn't gone up with it. So you actually need to move down the property ladder in terms of the place where you live. So rather than living in this area, you need to move out further actually can't afford to live there anymore. You know, and it's all great for the, you know, renters and the politicians to say, oh, you know, rent restrictions and all that sort of stuff. But the problem is, the moment you do that, people pull their supply off the market, then rents drive up even further. And this is where, you know, a lot of the decisions being made by the government are just ridiculous. They're there to win votes, but they then turn around and bite the tenants in their us, you know, that's what's happening. I mean, we know we're seeing this all time, it's interesting, we've now stopped the renewals that we're doing only because if we stopped the renewals now, for the next three weeks, then even if a tenant gives notice what the tenant gives those now, they're moving out right before Christmas. So what we're doing is we've started now until December, and then we'll continue on with the renewals, so that we get people on the other side of Christmas, you know, but the reality is a lot of our, a lot of our landlords now are saying, you know, if I don't raise my rents, then I'm going to be losing a substantial amount of money, which is creating a lot of stress that's not talked about by a lot of people, you know, certainly not in the media, and certainly not by politicians, and certainly not by generation rents and all these sort of people. But that's the reality of the market now for governments to fix. I do the housing local communities have gotten an a now a new one. They change that often. You know, she did a a speech the other day, and the big thing she said was she wanted, you know, to make sure it's fair for both sides. But she said she realise that restricting rents is not the answer, building more properties is the answer. Well, they're going to struggle with that. Because number one is try getting developers finance right now. Try you know, getting any sort of finance, try making sales right now, you know, so it's, if anything, rents are going to continue to go up, which is good news for landlords, because it will offset the increase in interest rates. And then of course, as interest rates start to come down, those rents won't necessarily come down with it. So you know, that's a positive side for landlords. But yeah, a new

Unknown Speaker 29:15
normal will be set at in terms of the rent values, and, and it will sort of pick up from there. Pretty much. What's interesting about all these conversations that have been coming over the past few weeks about rent control and stuff like that, and here this renters union has begun a student union I think, or something or the other is becoming one, and this is probably going to be very controversial and unpopular to say. But what I'd like to do is sit down have a debate with this person. So let's pull up all the renters and let's see how many of these renters are actually, you know, financially savvy, know how to control their cash flow, know how to control their money before they start screaming and crying about this rent. So going up and rents her and landlords are just milking it at this stage, are they really milking it if their interest rate has gone up by 6%, it's gone to 6% Sorry, and their mortgage payment has all of a sudden gone from 1000 pounds a month to 2000 pounds. So therefore, they have to increase it. And on top of that, another thing which people aren't really sort of focusing on is the other costs that are going to go up now whether it as well the cost of insurance that they have to pay, no, they insurance premiums have gone up, their service charges has gone up, because they have to now pay more for that person to go and fix the place. What these activists are not looking at is, is let's look at the entire picture. These renters that are complaining about the rents going up, as you said broke Well, what they need to really look at is look at their cash flows. And maybe they can't afford to rent in Kensington anymore. So they have to flip outside and go into rent in Redding, you know, which is why for us as a company, we've been foreseen this for a long time in terms of London, especially saying that, you know, if you earn less than a household earns less than 50,000 pounds a year. You can't afford to live in London, you shouldn't be living in London, you should be living in Redding, you should be living in Slough you should be living in, you know, on the commuter belt in Watford, for example, you should be living in Watford. Why should you be? Because you'll pay half the rent, but your commute into London in 15 minutes?

Brett Alegre-Wood 31:24
And that's not quick. Are you saying that that's not a moral decision against that person? Because they can't afford it? That's a financially astute decision for that person. You know, I mean, sure, what if they want to live in London and then go do whatever they need to do to afford to live in London? Fine. But the problem is, a lot of people see it as their right to live somewhere. And unfortunately, the government hasn't set up a system like that. And you know, what, if they want to set up the system like that, then they really need a political party, like the Chinese political party, but then the problem is, is then you might get be the person that has the right to work the land, rather than live in London, you know, the system we have, which is flawed, and you know, and isn't beautiful, actually, free market works relatively well, you know, within reason, and I'm not, you know, I agree there's should be regulations and that sort of stuff. But you know, you mentioned costs going up, I mean, you've got all these other costs going up, but you've also got all the regulation that's coming out, you know, they're talking about taking away, section 20 ones. Now, you know, what, our landlords never use section 20 ones, I've never, I haven't seen it, where a landlord goes, Ah, you know, what, just get the tenant out, because I don't really want them anymore. No, if anything, like even with his renewals, it's like, your rents gone up to 1850 they're currently paying 1450 Yeah, so but your the RPi will take you to, you know, 1550, say, and they'll say, Well, I don't want to lose a tenant. So you know, I'm happy to go with 1550. And we're like, a short because that's, you know, that's 1300 less than what the market is paying. Now, I'm happy with that. That's normally the response, we get more than get the you know, get the tenant out, you know, I don't care about their situation, I don't care that they've been living there for years. You know, we don't see that, you know, so yes, there is examples of that, but that's extreme. By far the majority are good people that are there. And they literally just want the tenant to pay the rent. The unfortunate reality is, tenants now think that that's their right not to pay rent, you know, so we're telling all of our, our tenants, our landlords, that they've got to take rent and legal now, you know, we've just hired debt collectors, that that, you know, are gonna go after the tenants to collect debt because the number of tenants just leaving and saying, I'm out, I know, 8000 bucks, but Catch Me If You Can. And so unfortunately, now we have to catch them as they can.

Unknown Speaker 33:52
culture that it creates with all these different things, you know, on on your point, most of the landlords we you know, most of the clients we speak to now the question really is around, you know, is this sustainable? I actually from my mortgage point of view, you know, if I get 1500 versus the market is showing 1900 I'll be okay, you know, let's get that in and make sure my tenant continues to pay rent. And most of the investors they're not your money grabbing sort of their hard working individuals who have saved in very financially savvy and are just trying to protect their future they've decided they've made the very right decision to not trust pension funds, and not trust funds, and take their financial future into their own hands and into their own control. And they should not be punished because you have a whole generation missed use their money. I can probably guess most of them that got you know, we're on furlough, whatever managed to save up a bit of money, didn't decide to go and purchase a property and instead decided to go buy the latest So I find that the latest clothes or the latest shoes of the late, go on a holiday straightaway after and pay five grand and go away. They weren't financially savvy. And now they're stuck in a situation of saying, Oh my God, my rent is going up and I'm gonna cry and let's start a union and get these rents controlled, rent control isn't going to help you, because what is rent control really going to do? You say, Well, actually, mortgage costs are here, this is here rent control at 2000 a month, you still can't afford it.

Brett Alegre-Wood 35:25
But I think more than that, even if the rent trials come in, it just restricts the market that's available, which means it drives up the rents even higher, you know, it's this is basic supply and demand. And when you break it down to that you're not helping them by doing rent controls. They've never worked anywhere, you know, I've not seen a single case study anywhere, in any government, in any any country where rent controls have actually worked, you know, but yeah, I mean, I'm sure people will say, Oh, but look at XYZ, you know, I mean, probably the only place that gets close that I've seen is the Scandinavian company countries, you know, Sweden or Norway, those sort of places, but they're a little different. So

Unknown Speaker 36:12
it's parts of Germany, maybe that it worked a little bit, I think, but not not really as much as it should have.

Brett Alegre-Wood 36:18
But then you look at the other side of it, which is, which is okay, fine. Germany, you can say does, but then Germany, you've got a crapload of places that don't get any money spent on them. You know, that because the landlords don't have the money. I mean, you know, there's there's a whole different system as well to their, you know, so it's hard to do apples to apples, because the German system slightly and same, the Scandinavian system is very, there's other factors, you gotta take into account there. You know, but yeah, so yeah. Yeah, I mean, look, we can talk forever on that sort of stuff. But I think, you know, for me, it's, it's about if, if you're concerned, then getting the data. And, you know, you said you said about zooming in, what I'm saying is, yeah, by all means, keep your your mentality zoomed out to the bigger picture. But actually zoom in quickly get all your data in line. And once you've got that in line, that even gives you the confidence to know you're going to be fine. Or it'll give you the tolerances to know at this point, I need to change something. Or it basically gets to the point where you go, you know, what, I need to do something, now I need to do ABC strategy, I need to sell this, I need to increase the rent on that I need to whatever, you know, look at other alternatives. I mean, and there is there is circumstances, you know that a client right now that I'm working with, who's just put three houses on the market, not because they have to sell three, but we figured she needs to get rid of one. And because she needs to get rid of one, we'll put three on in whichever one sells, it doesn't matter. And then we can pull the other two off. And that'll give her enough equity to see through the next two, or potentially three years, you know, so yeah, but I think get that get that detail in place now. And make the decision. Now, in actual fact, you know, we've been saying this now for six months. So really, you wanted to do it sort of six to 12 months ago. And then you wouldn't have had any stress or had limited stress. So yeah. Let's take a look at some of the the articles that are about right now. So let's just see what we've got here. So house prices in their steepest fall since February 21. global inflation may be nearly peaking as it happened. So any thoughts on that guys? Who wants to go first? Yeah, and let me see what it says. I'll zoom in a

Himansu Joshi 38:45
bit more. Well, that's the headline. How much is it actually dropped by? You know, month on month? Is it like point 1% growth is gone down by point one. Was it a point?

Unknown Speaker 38:54
Around the average price was 0.4%? In October, year on year, right?

Brett Alegre-Wood 39:03
Yeah, it's 0.4. Yeah, that's right. All right.

Unknown Speaker 39:06
Yeah. I mean, it we're gonna go into a period now with the news where you're going to constantly get this but then when you actually read the articles itself, you'll see that okay, it's a 0.4% drop based on you know, either on the previous month, or based on based on last year, this time last year, it increased by this march or whatever that is there. Are we asking the question of are we going to have a correction in property? I think it will be pretty naive to say otherwise. I think we are we are probably going to have a correction how big that correction will be. I can't see it higher than 10% at an absolute maximum, depending on where it is. Obviously you've got some places in Central London that if their prices You know, are quite high up there. So when they take a dip, it might bring the overall average down. So take the average of the drops a bit higher. But I think overall in places that we certainly invest in, in terms of your, what we call your everyday man home places where you're, you know, 70 80% of the market is going to rent or buyers a first time place, you will not see as a huge of the growth. But I think what this tells you now is that you can't take a broad look, when it comes to your investment, you have got to be very specific, in terms of what parts of that area you're going into, you can't just go, I'm going to buy a London property and just go and pick any area in London to buy a property, you have to be specific in what you invest in. Because if we look back at the previous recession, for example, you know, places like Hackney continued to grow during the recession, why was that the case is the resorting investment was going into regeneration was in place, fundamentals were right. So there was no need for that property prices to drop. What you Kensington and Chelsea took a massive hit, you know, and there'll be the same again, in this market. With the added difference. Now we have two other cities in Birmingham and Manchester, that have stepped up to being a world city. So they come into the mix. Now. It's like, okay, where do I choose to put my money? And even if you choose Manchester, Birmingham, what part of Birmingham? What part of managing? Where is it good to invest? I think if you stick to those things, these these things won't really matter in the long

Brett Alegre-Wood 41:37
run. And it's interesting. I sorry, go.

Himansu Joshi 41:41
Also, if you're looking to do this for the short term, so the next six to 12 months, then listen, property is not the right asset class for you. Yeah, it's all about medium to long term. And that's what it has always been. It's not about getting rich quick. Right? I mean, would you guys think? Same? Agree. I'm sure you all agree with that. Right? Absolutely.

Brett Alegre-Wood 41:58
Absolutely. 100%. And in fact, you wouldn't want to it, it's interesting, because I'm in Australia right now. And for Christmas at that. And then. So I've been chatting to a few guys about, you know, buying and renovating and that sort of thing. The problem right now in Australia is number one is to buy something, okay, there's still a good, it's still a pretty hot market right now. Okay, then it's to try and get a builder. Yeah. Now, this is not the build to do to a price this the builder get to get a built at a start work. Yeah, and commit to it is banner impossible. And you're talking, you know, somewhere between three and a year, you know, three months in a year to actually get them to build and and could even be longer, depending on where you are. And then the other thing is, is they're not going to commit to a price. So normally, when I when I did bought stuff, and I did it up, and I sold this, I knew I got in, I knew how much it was going to cost. I had the builder, there. And half the time, before even I completed on the property to have the building, they had to get permission to go in and do the work. You know, now you can't do that. So that strategy is virtually out the window. You know, and we're seeing this across the thing where, actually, you know, it's very hard to make money quickly. I mean, it's interesting, you know, a couple of minutes, I'm on one of my my chats, you know, WhatsApp chats on tech, you know, talking about tech investing, investing in tech companies, you know, and it's like, yeah, tech companies is not where you want to be. I mean, have you seen how much they've dropped? I mean, property is actually held up pretty well, compared to some of those bloody tech things. Holy shit, excuse the French, you know, but yeah. So yeah, I agree. Anyone who's looking short term right now wants to get in and make money is stupid. But be greedy, when others are fearful and fearful when others are greedy. Now is not enough now is the fear, now's the time to start being greedy. Because you can start negotiating better prices, you can start negotiating better terms, you could start, you know, getting into better areas, and certainly, you know if some of those areas drop, but I agree, we changed out, you know, if you went into the global financial crisis, we were selling property all around the UK. After going into that we stopped selling every year, we focused on London, we focus on Manchester, we focus on Birmingham, you know, not all at the same time. But, you know, progressively, you know, and because we've done that now, I'm a lot more confident going into this recession, okay, than I was with the past recession. Because to be fair, there's still a lot of places in the UK that have had no investment. And now they're talking austerity again, we just come out of a decade of austerity. It's like, that's not going to help at all, and those areas don't have the funding of screwed.

Unknown Speaker 44:44
Yeah, there's there's a lot of key differences between what this oncoming recession will look like compared to the one we had in 2008. And I read a stat the other day and it mentioned that you Currently at the moment that the the rate of ownership people that own property, unencumbered is sort of 30%, higher than it was back when we had the 2008 recession. So people have a lot more equity in their property. And also part of that is we know, since the last recession, banks have been a lot tighter with their lending criteria is making sure that you know, back in the day, people could put down 100% mortgages, no, not to put any money in the deal. Whereas now you have to have some equity in the deal. So then you also couple that with skin for the last, what, five, six years, they've been stress testing already at six, five and a half percent. So, you know, from that side of things, we are a lot better prepared going into this recession. And the other thing as well. And you know, when I read a lot of these headlines, when you see 30% drops in prices, it's like, yeah, but where are we talking about here? Because often, one of the biggest misconceptions is that people sort of have this idea that the property market moves and sort of one single entity and we know that it doesn't, you know, we know that you've got to really kind of separate that and actually look at where specific areas are within their cycle. Because like we said, Well, Ryan said earlier, yeah, if you're talking about Kensington, or Chelsea, which is you're paying over a million pounds, whatever for the property versus the the average affordability, then yeah, places like that are going to be more effective. Whereas if we go into what we would call the more everyday person areas, which are still heavily underpinned by that supply and demand factor, then yeah, look, you may still get those small correction. But certainly from a long term perspective, they are better set up to grow. And they also are also more protected. So it's these kind of new nuances that you also need to get into that detail with

Brett Alegre-Wood 46:48
regards. Yeah, I mean, get local. Now, that's, that's a principle I've always had, if you know, rather than listening to what the house price indices say, yeah, look at your specific area. And in fact, that's not enough look at your specific suburb, but your specific town, your specific Street, and even in places like London and a lot of places, it's its wit's end of the street, you know, we live on a street, which one end was multimillion pound houses. And the other end was cancelled flats, you know, so you could look at the average, the average was, you know, 400,000 500,000. But actually, this end of the street, you know, was two 3 million powerhouses, you know, so you got to get local got to get that. What's. So What's everyone's thoughts about this, you know, global inflation may be nearing its peak, IMF, you know, blah, blah, blah. Any thoughts on that?

Himansu Joshi 47:47
We did we did we have a slight drop, or read something a couple of weeks back where inflation is starting to go down? I mean, not significantly, and I think went down from like, 10.1% to 9.8%.

Brett Alegre-Wood 47:59
So it depends on what we're talking about now with inflation, because if we got like, where are we? Right now, if we have a look at CPI, so this is consumer pricing? It's 8.8%. September, the next one's out the 16th of November. Okay, so we've got another week. And so probably next week, so we'll talk about the results of that. But yeah, it's it's certainly been shooting up, it looks like it's been shooting up there from that, that data, however, and the other side of it is is so 8.8 is the is the CPI. But if we come down a little bit further, with a little bit further, a little bit further, is it No, maybe sorry, I might have to be on the next page, too. I was RPI. I've got it highlighted here. So you know, 12.6% is the RPi the retail price index. But actually, if you look at this, the rate of increase has started to come down. So rather than it continuing to go up rapidly, it's actually starting to come down now a little bit. Yeah. So effectively, what that means now is that we're hoping to see it taper off it I guess next week, if it continues to taper off. That's good news. Because that lets off the the you know, the interest rate push. But I know in the US, Jerome Powell has basically said he's going to make sure he starves off inflation by almost overcompensating because what he's saying is, he's got very little tools to stop inflation from getting out of hand. But if inflation if deflation starts happening, he's got lots of tools that he can work with. So that's going to be you know, that's going to be an interesting thing there, you know, to see how far and how long they go. But you know, I mean, we're seeing in the crypto markets, you know, they're really getting hit hard we're seeing in the, the, you know, the shares and stocks are getting hit really hard. Tech has been. I won't say destroyed, but you know, it's had it's real, you know, Facebook and all the big boys have stopped recruiting and letting people go, which

Himansu Joshi 50:18
is 11,000 11,000 How many people's 11,000 people I saw an article today that they're getting rid of thought that during COVID, people's the increase of traffic on Facebook was going to increase. They're going to carry on growing. So they hired loads of people post COVID. And he's come out and said he made a mistake.

Brett Alegre-Wood 50:35
Did you guys see how the totally how Elon Musk fired his staff? Yeah. I don't know whether it was real or not. But it's pretty friggin philon around if I can find me.

Himansu Joshi 50:53
Right. He still got his autobiography? Yeah,

Brett Alegre-Wood 51:00
I really. Yeah, I was just looking at that. But yeah, it's basically basically had a meme. And it basically said, you know, your time has come to fly, they can fly that next you're fired. You know? It's just like, Yeah, well, thank you.

Unknown Speaker 51:17
Was that like a play on words? Because we're being the bird symbol, nest and things?

Brett Alegre-Wood 51:21
Yeah, it's definitely a play on Yeah. But um, no. So let's, let's take a look at another. Another article. So when will house prices fall? Any thoughts on this? You know, analysts say as much as 15%. I mean, this is a stupid thing is which analysts saying this? Because that's kind of the important thing. And is it really important? I mean, the thing I find, you know, you've got the Bank of England saying, 30%, you've got these guys. I haven't even looked to see who they are nationwide, saying 15%. But again, they're using this house price indices saying, you know, that's what's going to be everywhere. Who knows? What, what's, what's your thoughts on

Himansu Joshi 52:04
that? Well, what did they say off the Brexit? When we announced Brexit? They said prices are going to drop by 20 30%. What do they say during COVID? 24? What happened during the global financial crisis? How much should they actually drop by then when banks run out of money? If it was like, What 15 To 15% 15 to 20? dependently? In London?

Brett Alegre-Wood 52:21
Yeah. I mean, that's what we talked about the realistic worst case, you know, because it's very rarely ever the worst case, but the headlines look for the worst case. And you see this in this, you know, the, the newspapers, they look for the expert, that's going to say, either it's going to grow massively, or it's going to fall massively, but not the expert that predicts the average, you know, but that's the sensationalism themselves, you know, and unfortunately, most people listen to the sensationalism. Interesting I find now is, it's it's almost the elder generation, which is scary, but I sort of classify myself for that. Even though money 49 But, but it's interesting, because they go to new sources, paper, you know, whatever's that sort of stuff, you know, BBC guardian, blah, blah, blah. But it's amazing. Everyone I know, young guys, now they're tick tocking. They're, you know, doing social media and finding the news via that. So it'd be interesting to see how that changes social media and the Tick Tock generation, and the, you know, short, sharp bits generation. I mean, the problem with journalism now I find with with going to the papers, and the BBC is NASA stuff, I got rid of my paper subscription, because there wasn't this journalistic anymore. It was opinion pieces. And everything's in your piece. Now. You know, I don't know if you guys find the same thing. Yeah,

Unknown Speaker 53:48
absolutely. Journaling has just been all about, it's just about pushing agendas. It's just about, like you said, creating such sensationalism. There's very rarely any truth in it. In most aspects, especially when it comes to things that are very complex, like economics, and housing and stuff like that, you know, no one knows at the end of the day, and if you said to me, when a house price is going to drop, I'd say, Well, how long is a piece of string? Because nobody actually knows no one has that ability to know it. And when it does already happen, you'll probably know about it after. That's the reality of it.

Brett Alegre-Wood 54:22
Yep. Yeah.

Himansu Joshi 54:22
But it also it also, I think the scary thing is, you know, when you're taught in school, whenever you're trying to look at anything from a historical point of view, you look at source A Source B and source C, and then you make your decision based on that. Right now you're looking at source A, Source B and source C, they're so different that you don't know what is the real truth. Right. So we are living in pretty scary times right now.

Brett Alegre-Wood 54:43
Yeah, it is what it is, but you know, what the truth is, and unfortunately, you know, to go and fact check every little thing just doesn't, you know, it takes too much time. So you can Yeah, yeah. Yeah, let's I mean, how much how much time? Yeah, you need to do that. But I just it's it's so hard. What about? I mean, I suppose a good news story from our perspective is that Newbill growth outperforms existing homes by 20%. You know? Yes. I mean, we caught a lot of flack. We couple of flack from people saying, oh, new builds, they're not worth they're overvalued. They're this that. But it is a cycle. You know, and the positive thing now is, they're not building enough new builds. But there's a lot of demand for new builds. So yeah, what are your thoughts?

Unknown Speaker 55:37
Wait until next year, when the CH, sir, the ECP certificate rating moves up for for properties that you want to rent out? I believe it's going to a C band. Yeah, what you'll find it's

Brett Alegre-Wood 55:55
25. I think it is, isn't it? It's not an issue.

Unknown Speaker 55:59
I thought it was next year. I might be wrong. I was there is next year, but either way it's going up, whether it's next year or the year after it's heading up. And what you'll find is that gap between new build and older properties is going to get even bigger, in terms of price. And not only from ascetical look and all that sort of stuff. from an energy point of view, it's 2025 2025. So C or above, it is pretty hard to get your your your place and all the property to a C rating. And the amount of money that it costs, taking into account how much the cost of materials and everything is gone up. It almost become unviable for those older houses to be held as a bite. So that investment and you're probably better off selling it or knocking it down and rebuilding it again. Yeah. And the new bill arkit. And I think the world that we're going into there, they'll start getting smart to the idea in that should you need to have your property when when when people keep smashing the new build and saying oh, but if I buy this older, older house, I'm going to you know I'm buying it 100k cheaper than this new build. Well, let's take into account how much you have to spend to refurbish it to get it up to the same standard that new built to be able to get the same rents, as the new build will get you when regulation changes kick in, how much can you you know, how much money is it going to cost you to get it within regulations. In addition, what your new builds will offer you is way more to your tenant things like gyms, we work spaces, you know, coffee bars and got to development others even put in rooftops, cinemas, rooftop gyms and this and that everything that your young working professional once within their lifestyle, that that lifestyle that they want to have, having at their doorstep, a gym having at their doorstep at a coffee place, they can sit down at bar cinema, you know, all these amenities? Is it was always going to be a matter of time that the market was going to move in an upward direction. Yeah, yeah.

Brett Alegre-Wood 58:16
Yeah. 100% Right. You know, I mean, it's, you know, we caught a lot of flack because, yeah, there is a new build premium on a lot of stuff, there is a phase of the market where new builds are more expensive than the you know, the secondhand stuff. But I think everything is putting towards, you know, having energy efficiency, you know, all that sort of stuff. And as that takes hold, which is really now starting to take hold, you know, tenants are even asking us, you know, and they're getting, they're getting the energy performance certificate, even though I think the energy performance signature is a ridiculous concept. It's a great concept, but it's just poorly implemented. You know, but yeah, right. Right read from WHO?

Unknown Speaker 58:58
Some I don't know on the chat I see in the comments here sir. arrive late maybe already covered my units purchased in London, Elephant and Castle royal, awesome. Kidbrooke have all come down in price since 2017. So I'm hoping the recession doesn't affect London too much as the property prices has already come down significantly. Based on what is this based on a remortgage that you went in she and you saw the value came and under that value, because there's two different situations we have here right now in valuations across London, is that what we're finding is values that are going in, they've got their own opinion of the market, and they're putting in subsidy valuations on places. In fact, one of my properties got that for re mortgage with the existing lender. The valuation when the value came back and put it down as a value of zero and an unsuitable property to lend on to which the lender themselves and I've never seen this before, but the BDM sent an email saying you don't know what we're doing. We have already got borrowing On this property, we know it's perfectly suitable for valuation. And that's what we're finding. So I don't know whether the true value of the property is dropped? Or are you talking about when you went in for a re mortgage, and the value is invalid based on their opinion of where the market is heading towards?

Brett Alegre-Wood 1:00:21
Yeah, cuz actually, look, London hasn't necessarily dropped in price. It hasn't done a lot since Brexit. I mean, Brexit killed the London market. But it was already at the top. So it was at the top at the same time as Brexit sort of come about. So we've had a period where it grew, and then it sat around, and I would have expected it to grow now, but obviously, you know, Brexit, and then we had COVID, when we thought I thought, okay, London's going to come back. And actually, but now London is still you know, as far as I've seen from prices, they're not dropping yet. What we are seeing, as Ryan said, is values are coming in. And one of the one of my mates, I was chatting to 28 units in a development 25 of them, which are all sold for investment, got zero rating values. So which just destroyed all our sales. So he's now concerned that that development is going to fall over, he's going to lose it because the the lender, the value has come out and said, they're not they're not mortgageable, you know, and yet, they are, there's nothing wrong with the properties. It's just that whoever was the company that did that. And the problem now with the exit two system with a surveyors system is, once that goes on to one that's available that valuation is available for all, so then the next person doesn't want to second guess what the first person did. You know, and we're seeing this, you know, we're seeing down values we're seeing, you know, because we saw this in the global financial crisis when value is they were valuing what the market value was, but then when the market dropped, they then lost their jobs and got struck off and couldn't get Pei insurance, because they said they miss value. So the reaction to that was they just don't valued, you know, yeah. And they preempt the market now. So we're seeing down values on stuff that, you know, it's a proper negotiation, willing, buyer, willing seller, in a proper marketing, come together, choose a price and the end the valuer says that's not what it's worth. Well, actually, that is, by definition by the Red Book rules, which governs how they do it. But unfortunately, what happens is the mortgage company is now saying, we want to down value, you know, we want to take away that, that risk of, you know, and it's, you know, five 10%, that they're dropping that that valuation, or they're just saying, it's not, it's not mortgageable, which is ridiculous. But yeah. So let's gonna move on to house prices, because I think one of the things with house prices too, okay. It's very easy. Let me see. I'm going to zoom in here, which I can good. So if we have a that? Here we go. Yeah, so if we ever so this is nominal house prices by country. So when we compare, you know, if you're sitting in the UK right now, and saying, oh, house prices are so expensive. Well spare a thought for all these other countries which are above that. Yeah. Because the reality is, you know, if you're sitting in Turkey right now, well, you can see what's happened here, normal house prices up here. And this, this diamond underneath is the rent side of things. So you can see prices versus rent, there's a massive disparity there. You know, but when you come to the UK, you know, it's, you know, it's in the lower to mid half, you know, Australia's next door, which I'm surprised I find Australia bloody expensive. But you know, what, it's, you know, I get it, you know, Germany, you can see here, you got Canada, United States. So my take on this is that actually, when you talk about how far prices have to drop, from a world market perspective, actually, United Kingdom is fairly priced. And the reason I think that this is the case, we used to be up this end. But I think what's happened is because of austerity, because of the lack of growth in a lot of areas. Okay. You know, really, it's only the London, the Manchester Birmingham's and a few other, you know, areas with really good fundamentals that are seeing the growth. And I think that's really important, you know, I mean, it's, you know, you can sit there and say, well, actually price is going to drop 30%. But what is that based on? You know, and this is this is the thing when you look at the stats or you look at the data, then you've got to look at where you're invested or wherever Investing, if you're investing in areas with fundamentals, with growth that's happening with funded regeneration, which all these things, actually 30% is a hell of a lot of a drop, you're more likely to see maybe a knee jerk reaction where they drop 10 or 15. But then they come straight back up. And that's what happened in London and you know, Central Zone, one London, in the last job, a financial crisis, it may have dropped 30%. But it jumped back up pretty quickly. And then it barnstormed and understand that's the key here, too, is if you're thinking of selling right now, at the worst time in the market, just remember what happens after this. Yeah, incomes getting driven up right now, rents are getting driven up. So as the rents and the income get driven up, okay. When we come out the other end, those places for the fundamentals, now, the affordability gap is closed. And that allows house prices to grow further. Yeah. So we see that when we come out of this recession, which may be a year, maybe two years, normally on average is two years in our first six months isn't going down, that is sort of settles up on the bottom, and then it can come back up. But you know, they'll sit on the bottom for the two years until everyone loses their job quickly, then they get back into the job, then they become productive in the job. And only after they're productive in the job. Do we get out of the recession? And that's the general state of the wave recession. Now, it may be a three year or four year and five year recession. You know, that's a that's more of a deflationary depression, probably you call? Do I think it's going to happen? No, I think we'll probably do our two years. But the interesting thing is when you come out, that's when we're going to see the next boom, you know, so you've got to go through this to get to the next boom, and then your cigarette. So chi, you mentioned about your properties. Now it's clear the the comments aren't actually working right now. They're not coming through to us. So but that's fine. But yeah, it's you The 2017 was when things stopped growing in London, and they haven't really done anything since then. So even if they've dropped, it may be 5%. Or it could just be the value. But yeah,

Himansu Joshi 1:07:14
I think I think she just said it's based on internet searches. And again, you can't really make decisions based on the searches and stuff like that. Yeah, speak to her. I'm only getting value property. I think just to touch on another point you just made as well as, like a lot of people have, you know, will sell property because they're scared, not because they have to don't sell anything, because you're scared of anything. I mean, look at those people that sold crypto just before COVID started because they couldn't wait to get their money out and look what happened to crypto towards the end of the year, they were kicking themselves. So we probably should

Brett Alegre-Wood 1:07:47
probably shouldn't talk about crypto today after

Himansu Joshi 1:07:49
FTA today, but yeah.

Brett Alegre-Wood 1:07:53
But it's been an amazing thing to watch with that crypto market. You know, and yet, yeah, a lot of people begrudge it and say that it's you know, it's that, you know, it's death nail. Actually, I don't think that at all. But that's for another discussion. So a couple more things I just wanted to bring up. So this is said, I think this is really important. So this is one of the big frustrations that we're having right now. Which is let me just get this up. Where are you? There we go. So this is an article I wrote. So you can go to glad fish.com and read this article. And I recommend if you're an investor, owning a property out there, now you go out and you work out what is registered on land registry, have a read of this article. Okay. It's quite a long article. If you're working with us, then yeah, unfortunately, you need to do that. But basically, check you got the contract there, check the what the notices term says download your registry, titled register extract, cost three bucks, just go through this because if your address your current addresses in there, or the address of someone like EZ track, if you're working with us, then our details are there somewhere you they are that you can use that you can register the email address that which means you can be contacted, what we're finding a lot now is there's a whole industry, okay? And, you know, where basically, if you don't pay your bill on time, they they send it to the property not to you, okay, because I sent me into the property The tenant won't pass it on. And then next thing you know, there's late fees and the next thing you know, there's legal proceedings and possession hearings and everything like this. Yeah. And what ends up happening if you haven't got your address there, you will make you may not be told, okay? So it's really important that you register a you make sure and if you're buying a property, make sure that your solicitor in the notices section of the contract of the The agreement you're signing puts your address that you can be contacted at the you're going to stay at. And if you move, you have to go through land registry and change it for every single property you own. Okay, so it's really important that you do this, because if you don't do it, yet, the potential is, you know, we've had bills. We've had bills of about seven grand, you know, but, you know, they just they vary, but it's ridiculous what they charge now. So yeah, so that's just a, you know, an article to read. Was there anything else you guys wanted to cover?

Unknown Speaker 1:10:39
So for today, yeah, we've

Brett Alegre-Wood 1:10:40
been through a lot. We've overshot out an hour, but we're happy to go on for as long. But um, yeah, guys, we'll start the comments out for next week. And yeah, and then we'll get some interaction. I don't know what happened today. But hopefully, you've found that value tomorrow, well, sorry. Next week, we'll have the we should we should have the inflation figures by then. So we can chat about them, that will actually be able to give us a decent indication of our strategy from here and see whether we've need to change it whether interest rates are going to rise, Bank of England's going to be under pressure, you know, this was awful. We'll also have what's happened in the midterm elections in the US to see if the Republicans get it or don't get it, or whether it I mean, from just before we came on, I checked and it was on a knife's edge. So, you know, so Republicans winning some. Sorry,

Unknown Speaker 1:11:32
the red wave never happened.

Brett Alegre-Wood 1:11:34
Yeah, but whether it happened enough or not, but either way, we'll see whether there's actually going to be a some civil unrest or whatever. You know, so yeah. But yeah, guys, we'll Yeah, thank you. If you've got any questions, by the way, guys, by all means, you know, phone in and speak to the team, email the team, and we're happy to, you know, if you're looking at a portfolio strategy, you're looking for confidence, you want to run the numbers, whatever you want to do to get you through this next period. You know, that's what we're here to do. We're here to help that out. And obviously, if you're looking at expanding your portfolio, taking some advantage of some of the deals, and you know, and developers are now starting to be realistic, they're starting to come to us and say, you know, hey, can we guys get some sales for us? And we're like, yes, we can. But you need to, you know, give a little bit of margin away to account for the fact that you're going to see through this period, they're doing that now that is happening, that market is already you know, taking place. But there's a lot I mean, the good thing is is a lot of good quality property, great fundamentals, great regeneration, but unfortunately, it's not the whole of the UK that are benefiting from that. It is really, you know, your London's your Birmingham, Manchester. I don't discount London either, because London actually still has fantastic fundamentals, you know, but yeah, anything you guys want to add. Now, that's it for me, now. Awesome, guys. Well, thank you. And yeah, we'll see you guys next week. All right. See ya.


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UK Interest Rates, UK Recession 2023


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