🔑 Key Takeaways
- Despite challenging times, the UK government has not banned property transactions, and the response to the measures has been positive, but long-term effects are uncertain.
- Government's eviction ban not as clear-cut as it seemed, courts won't hear possession claims for 90 days. Banks haven't stopped lending, just facing difficulties processing applications during pandemic.
- Banks face overwhelming mortgage holiday requests and cannot conduct physical property valuations, leading to withdrawal of higher LTV mortgage products, not due to fear of falling house prices.
- During crises, verify information accuracy, prioritize team welfare, and leverage cloud-based solutions for successful remote work transitions
- Teams can bond through creative efforts and virtual interactions, even during difficult times. Prioritize team connection to foster resilience and positivity.
- Investors can capitalize on developers shutting down sales offices due to the pandemic by maintaining relationships and being open to new deals, securing strong deals that may not have been available before.
- Despite economic uncertainty, property investment deals can be made. A £150,000 price gap can be bridged, leading to advanced negotiations. Staying alert and open to opportunities is crucial for investors. The stock market also presents investment opportunities.
- Invest in well-run companies during market volatility for potential discounts, but carefully consider risks and future earnings
- Exercise caution in market movements, focus on positivity, and look for opportunities to support each other during uncertain times.
📝 Podcast Summary
Government measures disrupt property market but not a complete halt
The property market is experiencing disruptions due to government measures, but it's not a complete halt as some headlines may suggest. Last week, the UK government announced guidance for buying and selling homes, making it difficult to physically show properties to potential buyers. This has led to sensationalized headlines implying a full suspension of the housing market. However, the reality is that the government has not issued a ban on property transactions. The sunshine and community spirit, as shown by the clapping for carers, have helped people cope with the challenges of the current situation. Overall, the response to the measures in place has been positive, but the long-term effects remain to be seen.
Clarifications on Evictions and Mortgage Lending
The current situation, whether it's related to the coronavirus or the property market, can be confusing and filled with misinformation. This week, there have been several clarifications on various fronts, such as evictions and mortgage lending. Regarding evictions, the government's initial announcement of a 3-month ban on evictions was not as clear-cut as it seemed, and the courts have now agreed not to hear any possession claims for 90 days. As for mortgage lending, the Daily Mail headline "chaos for the housing market as banks stop mortgage lending" can be misleading. Banks have not stopped lending due to a lack of funds or fear of house price drops, but rather due to the uncertainty and difficulties in processing applications during the pandemic. It's important to look beyond headlines and seek out accurate and detailed information to make informed decisions.
Mortgage lending issues not due to fear or instability, but practical pandemic pressures
The current situation with mortgage lending is not a reflection of market instability or fear around house prices, but rather practical issues due to the pandemic. Banks are under pressure from an overwhelming number of requests for mortgage holidays and the inability to conduct physical property valuations. As a result, some lenders have withdrawn higher loan-to-value mortgage products, not due to fear of falling house prices, but because they can only rely on desktop valuations for loans under 60% LTV. It's crucial to understand the nuances behind the headlines and not be misled by sensationalist media coverage. We all have a responsibility to fact-check information before sharing it, especially during these uncertain times. The property market is just one aspect of life that's being heavily impacted by the coronavirus, and it's essential to approach information with a critical and questioning mindset. Don't feel embarrassed if you've been caught up in sharing misinformation; it's easily done in the current climate. Instead, take the opportunity to educate yourself and others by questioning the sources and validity of information before sharing it.
Ensuring accuracy and prioritizing team well-being during challenging times
In today's chaotic world, it's crucial to be responsible consumers of information and verify the accuracy of what we share. This applies not only to property matters but to all subjects. During these challenging times, prioritizing the well-being of our teams is essential. Leaders should put their teams first, ensuring they can continue to provide for their employees and maintain excellent service for customers. The speaker shared their experience of transitioning their business, employing over 50 people, to remote working in just 24 hours. They emphasized the importance of having a cloud-based setup and a supportive client base in making this transition successful. Despite the initial challenges, the speaker expressed a newfound appreciation for the team spirit and camaraderie that has emerged during this period of remote work.
Creative Responses to Challenging Times
Even in challenging times, the organic coming together of a team can lead to unexpected growth and unity within a business. Our speaker shared how their team's creative responses to the current situation, from behind-the-scenes Instagram content to virtual beers on Fridays, have brought them closer together. Despite the difficulties of working from home and adapting to new policies, the team has responded brilliantly, showing resilience and care for each other. Additionally, our speaker noted that most customers have been understanding and supportive during this time, contributing to a sense of community and positivity. Ultimately, the speaker emphasized that businesses have the opportunity to prioritize their teams and create a sense of connection, even in the most difficult circumstances.
Stay engaged and adapt to changing market conditions
While the current economic climate may be focused on numbers and deals, it's important for investors and businesses to stay engaged and adapt to the changing market conditions. With national developers shutting down their sales offices and sites due to the coronavirus pandemic, there is an opportunity for property investors to capitalize on these situations. By maintaining relationships and being open to new deals, investors can secure strong deals that may not have been available before. For instance, some developers who were previously hesitant to make deals are now more open due to the uncertainty caused by the pandemic. By staying engaged and being flexible, investors can turn challenging circumstances into profitable opportunities.
Finding Opportunities in Challenging Economic Times
Even in challenging economic times, there are opportunities to be had in property investment. A month ago, a deal was at a stalemate due to a significant price gap. However, last week, the parties involved found a way to bridge that gap, and negotiations are now in advanced stages. This £150,000 difference, which may seem insignificant to some, can make a huge impact for individual investors. The speaker emphasizes that this is not about being ruthless but rather offering to help developers as an exit strategy. With many businesses and developers still adapting to the new way of working, the speaker believes that there will be even more opportunities to be had in the coming weeks. The best investors remain alert and active during difficult times, and the deal-making department is having great conversations and seeing a lot of opportunity. While it may be tempting to pause all dealings during uncertain times, the risk of missing out on a good opportunity is high. The speaker encourages staying alert and being open to new opportunities, even in challenging economic conditions. Additionally, the speaker mentions that the stock market has also been bonkers, offering opportunities for investment there as well.
Volatile markets offer discounts to well-run companies
The current volatile stock market presents an attractive opportunity for investment, particularly in well-run companies like Persima and Taylor Wimpey, which have seen significant discounts to their share prices. The uncertainty surrounding the markets, driven by factors such as economic data releases and political events, can create opportunities for those willing to take calculated risks. However, it's essential to carefully consider the potential risks and future earnings of the companies in question, as some discounts may be justified due to the uncertainty surrounding their future prospects. Additionally, market volatility can create unexpected price movements, making it important for investors to remain attentive and prepared to take advantage of opportunities when they arise.
Market volatility and opportunities
Despite the market volatility and uncertainty during these challenging times, there are opportunities to be found, but also risks. It's essential to exercise caution and wait for the markets to settle down before making any significant moves. The markets will recover, but it may take some time. Additionally, while the current situation is difficult for many, it has also brought out the best in people, creating a sense of unity and community. It's crucial to focus on the positive aspects and look for opportunities to come together and support each other. The podcast will continue to provide insights and answer questions three times a week, so stay tuned for more informative episodes.