In the first episode of the Property Ladder, Mark gives the 5 top reasons hotspots based on regeneration are nonsense. He shares why buying in regeneration areas could be a mistake and talks about what you should be focusing on as a property investor instead.

 

KEY TAKEAWAYS

 

1. You never know when regeneration is actually going to happen, even after it’s been announced. Regeneration doesn’t always increase demand.
2. Once regeneration has been announced, it is very quickly baked into the price, so any capital growth that might be there has most likely already gone by the time you get to market
3. Regeneration is a very easy sell to investors but it is forward priced and the developer and vendor are taking the capital gains from you.
4. People focus on regeneration areas as they think it will go up in the medium to long term, but what they should be focusing on instead is those properties that are easy to rent and high yielding.
5. There’s a lot of developing of houses and flats in regeneration areas because developers know they can sell a lot to naïve investors.

 

BEST MOMENTS

 

"You can’t be sure when regeneration happens what happens to capital growth”

“If you buy new build property, you need to be very alive to the forward pricing concept in regeneration areas”

“All you need to do is focus on the fundamentals, the boring stuff”

"There's  often too much supply"

 

VALUABLE RESOURCES 

https://www.youtube.com/user/progressiveproperty https://www.progressiveproperty.co.uk/the-progressive-co-founders/

 

ABOUT THE HOST

Mark has bought, sold or has managed around 1,000 property units for himself, Rob, his family and his investors since 2003. He is a system and spreadsheet geek and has developed a complex, confidential deal analyser system of buying residential, commercial and multi-let properties.

 

CONTACT METHOD

Email: [email protected]

LinkedIn: https://www.linkedin.com/in/markhomer1

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