Expat Property Story

HMOs: London Versus the Midlands


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#166

It seems like everyone’s interested in HMOs these days.

It’s one of the few business models that passes mortgage lenders’ stress tests and just about gives you enough cashflow to make the effort worthwhile.

It’s fair to say that most HMO investors, ourselves included, focus on the Midlands or the North.

But today’s guest puts forward a robust argument for investing in London. Yes... London.

And perhaps after listening to this episode, he may convince you too.


We discuss:

- Lower competition / stronger rental demand in London 

- Why it’s easier to find deals and get offers accepted

- Working with Private Investors

- Finding the right area aligning with strategy and circumstances

- Importance of investing locally

- Acknowledgment that remote investing can work with the right team

- Impact of Article 4 in London

- High-quality rooms in HMO properties for premium rental income and positive impact on commercial property valuations

- Large cpaital Requirement for London

- Challenges of achieving passive income through property investment

- Transitioning from property acquisition to building a team for property management and sourcing

- Reducing costs and aligning with larger strategic business goals

- Fostering friendships and socialization to reduce property turnover

- Tenants staying longer, reducing property turnover

- Comparison of rental yields in the Midlands with potential profits for property development projects in London

- Time efficiency and profitability in single London project investment versus multiple deals in the Midlands

- Discussion on significant growth potential and building wealth through London property investments

- Identifying areas in London for investment

- Predictions of London's upcoming exponential growth stage

- Viewpoints on the property cycle

- Growing interest in HMOs due to passing mortgage lender stress tests and providing sufficient cash flow


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Keywords
London property market, private investors, bridging finance, capital intensive, rental demand, anti-landlord legislation, tailored investment strategy, remote investing, property management, long-term investment, article 4, HMO properties, turnkey service, passive income, entrepreneurial journey, strategic delegation, management agency, isolation impact on tenants, rental yields, property turnover, Expat Property Guy, property cycle, explosive growth, mortgage lender stress tests, ideal housemates, successful property investing, "Property Adjectives," capital appreciation, cash flow, additional streams of income

...more
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