When is the Next Recession? Q&A With Rick Gannon

Join an in-depth property discussion with your host Mark Homer and founder of property management software Go Tenant!, multiple business owner and self-made millionaire, Rick Gannon. Hear expert property advice for both beginners and pros and get insights on the best property strategies, the future of the UK property market post-BREXIT and discover what you can do to become a successful property investor as Mark and Rick answer questions from the community. KEY TAKEAWAYS Question: Are we going into a recession? Answer: If we leave the EU on the 31st October we will see a correction in the UK property market, this can vary from 10-30%. The bank of England believes we will see a 30% reduction in prices in the first 12 months with another correction at the end of 2020. However other articles predict 15-20% reductions. Nevertheless, it depends where you’re located in the UK, in the North property prices are still achieving 100% of asking, however, year on year properties in London are seeing a decrease in prices of about 0.8%. Question: What can you do if your strategy isn’t working and you’re not securing any deals? Answer: You’re probably not doing enough viewings and not offering on every property. You need to offer on 10 properties a week and fill your pipeline up. It’s a numbers game and simply by the numbers, you will get some deals. Learn from the objections you’re getting and work on your pitch. Question: Should you manage your property portfolio yourself or outsource it to an agent? Answer: It depends on your lifestyle and how much time you’ve got. It’s a good use of time to outsource your properties however, it does depend on the property strategy. With HMO’s it can be more difficult and it may be better to manage it yourself. Rick has a useful app called Go Tenant! To help with these challenges. Question: How can I minimise risk when investing in the current market? Answer: There are lots of types of risk such as yield, capital, tenant risk, financial risk, and contractor risk, ultimately it’s important to fill up your pipeline and manage your financial risk with fixed rates and to ensure you’re not exposed. You can also reduce your risk a lot by referencing tenants effectively. We do all of the due-diligence of tenants before the viewing using Go Tenant! Remember an empty room is better than a problem tenant. Question: Do you have any tips on negotiating a property price? Answer: Try and give them what they want. Try to give them everything they want other than the price, be flexible with completion dates, accessibility and build a relationship with the seller directly. Make yourself better than everyone else bidding on a property. Question: Are property investments in the North overtaking London? Answer: It depends on what context, the yield is guaranteed to be higher in the north although the capital gains and property value are less certain. It’s very hard to predict, however historically London has always been ahead in terms of capital gains. There is a lot of uncertainty right now and the sterling is very, very low but once the uncertainty lifts after BREXIT all the money waiting on the sidelines will just pour into London both locally and internationally once we’re in a more stable market and the pound recovers. Advice From Mark Clause 24 and difficulties with clause 21 are making property investment more challenging. The Holiday let market along with serviced accommodation units sidestep a lot of recent rules and regulations affecting more established property investment strategies. Although It’s always a good idea to diversify your portfolio to adapt to changes to the current economic climate.   BEST MOMENTS “The last cycle started in Mayfair in 2010 and then price rises spread throughout the country as people moved” “It’s always a good time to buy at certain price levels, it depends on potential capital gains and potential yield” “The next month might actually propose an opportunity to buy at lower prices” “The bank of England has made an assumption on XY&Z and either way it’s only one outcome” “There’s always going to be something that stops people from investing, there’s never going to be a right time.” “You’ve got to adapt to survive” “Don’t focus on the things that you can’t control” “We’ve moved the majority out into limited companies” “The direction of property moving forward politically. Is it better to progress with a commercial strategy that drives cashflow?”   VALUABLE RESOURCES https://gotenant.co.uk https://www.rickgannon.com ABOUT THE HOST Mark Homer is an entrepreneur investor.  He has worked with investment since he was 15 years old using the laws of wealth! He is a spreadsheet analyst with an impressive following from major publications including BBC Radio, The Wall Street Journal, The Independent, and co-authoring the UK’s best-selling property books.  Mark has always looked for the best investment vehicle, and at the end of 2007 with Rob Moore the co-founder of Progressive Property his joint portfolio produced more profit than any of the other investments he’d tried in the last ten years, combined.  CONTACT METHOD Email: [email protected] LinkedIn: https://www.linkedin.com/in/markhomer1 Facebook: https://www.facebook.com/markprogressive Twitter: https://twitter.com/markprogressive ABOUT THE GUEST Rick Gannon is a serial entrepreneur, multi-business owner and self-made millionaire. Rick's main focus is helping others achieve their financial goals through investing in high cash flowing property. Rick is the Founder of "Go Tenant!" Property management software and tenant recruitment software. Rick is the best selling Author of Number 1 best seller property book "House Arrest" and columnist for 2 national UK property magazines. Rick has featured on Sky Television and is seen as the industry expert for multi-let / HMO property in the UK.    ‘Brought to you by Progressive Media’: https://progressivemedia.uk/