G2M are a company acquiring and regenerating existing rental stock in established communities, they provide long-term, affordable, and decent homes for families – combining institutional capital, active asset management, and proprietary technology to drive meaningful impact across the UK. I spoke with their co founder and CEO Paul Morton on the latest episode of the Rodcast.

Here is what you can expect from the episode;

Paul's journey from chartered accountant to venture capital, and his evolution into property, shifting from trading to a unique investment model.

What drives the Supply of homes.

Why Landlords are exiting the market.

Why average and lower income households are seeing a contraction of rental opportunities.

Why institutional capital has stayed away from UK residential in the past.

Why the residential market is so fragmented.

Why institutions have stayed away from existing homes vs new builds and what are they missing.

UK residential investment Market vs more established markets like USA and Germany.

Consolidation of private rental market and what that means.

How do lower value areas vs higher value areas affect the investment model.

The data they use in their investment models.

Fixed costs of running a lower value property erode the income disproportionally.

Rents top out at the higher end of the value curve so how they triangulate their sweet-spot.

Why do they favour the cash generating model.

The Drivers of Problems in Housing stock.

Liquidity of Housing stock.

Why Right to Buy Scheme has restricted stock of Social Homes.

Unintended consequences of Home Ownership promotion.

Sustainable tenancies and Affordability.

£19 Billion of welfare is unclaimed.

Having a resident base that is not just income driven.

Key data sets that Paul likes to keep his eye on.

The Biggest risk to G2M and what they are doing to mitigate it.

Why being resident centric helps to look after everything else.

How Paul's role as CEO has shifted as the business has grown.

Why they demerged the investment and operational parts of the business.

The change in culture of a growing business.

The challenges of pivoting from trading to investment models.

The valuation of Time in property.

The importance of Arbitrage.

Why understanding the Capital replacement cycle is key.

The energy and motivation required to be investing in residential property.

£300 Billion a year of existing homes change hands each year and why that is important.

What would change Paul's mind on investing in existing homes.

The effect of regulation on the Housing Market.

Energy Performance regulations and how to allocate capital toward that.

As always a huge thank you to www.978finance.com who made this episode possible. Please contact them if you have any finance needs for your next property deal.

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