By Raj Sharma
The year 2023 is well underway – we’re already into February and the first of the four monthly PIP meetings kicked off as usual with the Birmingham meeting at Avery Fields in Edgbaston.
Introductions
We began with the 15 seconds introduction round. With several new members and guests in the room and members travelling to us away from their home PIP locations – it was good to see many new faces as well as our regulars!
Adam Wale – Designing HMOs- It’s not all about the colour scheme!
Our guest speaker for the day was Adam Wale, experienced property investor with experience of single lets, SA and of course HMOs.
Adam’s company Aben Living uses Scandinavian design principles like Hygge to bring quiet comfort and coziness to their HMOs. Their design concepts begin with functionality. How can their tenants most efficiently use their space? Their room designs include different living zones created by colours and materials, designed both to improve functionality and wellbeing as well as easy maintenance. It’s not just about the colour scheme!
Aben Living also provide their design services to other investors and we saw many examples of their work.
The message was that great design creates a better experience for their tenants, creating less voids, higher room rents and better valuations of the properties. A win win for both tenant and investor.
Pinder Dhaliwal – Falcon Insurance
First of our sponsors updating us for the day was Pinder Dhaliwal from Falcon Insurance.
There was another reminder that many properties are still underinsured. Rising build and labour costs mean that reinstatement values are now much higher and as a result premiums are rising too.
Pinder reminded us of his experience in the Social Housing sector (he is an investor in this area himself) and the importance of having the right insurance product for the type of tenant living in the supported accommodation. Getting the right cover is vital and one size does not fit all.
The message is to speak to a broker to create a bespoke policy for your property, ensuring it’s not underinsured – and don’t try to do it yourself online!
Kirsty Rogers – Together Finance
Together Finance are known for their short term bridging and auction finance, but this month, Kirsty showcased a recent project that they financed from purchase and development to term finance. It was the purchase of a snooker hall that was converted to a bar, near the Liverpool and Everton football grounds. Together finance can fund development deals too if the deals stack. Development funding is paid in stages and in arrears as work progresses, get in touch with Kirsty for more information.
Craig Beesley – Mortgage Update
Next up was Craig Beesley from The Mortgage Consultancy with a mortgage update. Rates continue to fall, with many selected purchase and remortgage rates below 5%. HMO rates are still a touch above 5%. Watch out for higher lender fees though!
Craig pointed out the changes in business models many investors are making to counteract higher rates, eg converting 1 bed flats to 2 beds to get higher valuations or changing single lets to Mini MOs of 3/4 beds to get higher rents.
Craig pointed out that rates were back to where they were 10 years ago – we survived them and will now!
Member Showcase – John Raiye
Long term Bham PIP member John Raiye presented an excellent member showcase to tell us more about his property experience.
John’s professional career started with training as a QS and he was inspired by the £1m plus profit one of his clients made on a property development in the late 90s.
John launched into investing in the North, in the Greater Manchester area – always investing in the periphery of the established areas as they would benefit from growth in time. He became quite proficient in direct to vendor marketing and benefited from his ethical approach to create win win situations for all parties.
John then went on to invest in the city centres of East Europe, benefitting in the rise in property values until the crash of 2008.
John refocused on the U.K. market, growing the portfolio and with his own professional experience and his network he delivered several ground up developments.
John was asked if property development is worth it now? He said it’s always worth it. People need places to live, but do your due diligence, have good advisers and know your numbers!
We always are looking for member showcases, so please get in touch if you want to showcase your property business!
Mastermind Tables
The meeting concluded with our Round Table discussions and networking hosted by John Raiye and Adam Wale
That concluded another superb meeting – and will meet again on 3rd March!
See you soon!
