To say Covid19 is a major disruptor is almost an understatement. In a short space, it has completely transformed the way we live, shop, work and run businesses. The landscape of the UK property market and any strategies I would have listed to succeed in property only 2 weeks ago has changed dramatically. My focus has therefore shifted to highlight the 5 major challenges and how we can potentially take advantage of this situation, thrive in it and crush it!
On a side note we have to give credit to all the healthcare workers who are dedicating and sacrificing their lives for us. God truly bless them.
Challenge No. 1: Impact on Property
The changing landscape of property means earning an income using specific strategies as Rent to rent/Serviced accommodation/ Short term HMOs and the long term rental market is completely at a stand still. The normally thriving rental market has seen the biggest slow down ever and a number of mortgage lenders have pulled out. The hospitality and tourism side of my business has definitely taken a big hit with the travel restrictions and the lockdown.
I’m resolving to find ways to overcome these challenges by changing the way I run my business to adapt to this new normal and being creative in some of the strategies I employ to salvage as much as I can within that sector. However, I am aware I will need to face my mountains and make some tough decisions over the next few weeks to limit my exposure and I’ll be facing these head on.
That being said, now is the exactly the time to be getting educated in some of these property strategies because once the market picks up, there will be lots of deals in the market. Also, determine which areas you want to operate in and make connections with estate agents within those areas. Your aim is to create a shortlist of agents you will be working with and engaging with them from now so that when this eventually blows over you’ll be top on their list of prospects.
Challenge No. 2: Working effectively from home
This has been a true test to the title of my blog “Property Mom”. Now, more than ever, I fully appreciate the challenges of juggling the two, literally having to play full time mom and full time business owner working full time from home. With home schooling, working, connecting with the husband it’s especially more challenging and tiring. So I stopped trying to multitask. I’ve now reorganised my day to focus primarily on one thing for a set period uninterrupted then take a break to catch up on messages and emails so I’m truly focused on what I’m doing at any point in time which I’ve found more efficient and keeps me sane.
I’m spending the quieter nights to develop my plan for the future, embarking on lots of training webinars and setting the building blocks for where I want to move my business as I have determined to succeed in this season.
Challenge No. 3:The Looming Financial Crisis
it was literally this time 12 years ago during the previous financial crisis in 2008 that I got into property investing. I remember all of the bad news and the trepidation I felt, constantly wondering if we had reached the bottom. Truly, there’s no way to tell if we have, chances are things might get worse but what is certain is that while this is all ongoing and there’s fear and uncertainty in the market, that’s exactly when you should be looking beyond to spot what opportunities you can create for yourself. So Let this experience become your new story. Control how much time you spend focusing on Covid 19 and look to start building something that will make a lasting impact to your life which you can look back on 10 years from now and say it all happened because of Covid 19. Think about the confluence of events? When will we get this opportunity to have all this technology at our finger tips with the time and data available to use create, strategise and cultivate new businesses again?
Challenge No. 4:Banks Tightening Lending Policy
As always, we can rely on our banks to bail out on us when we need them the most. Just yesterday, a remortgage I had been working on for the past 3 months was shockingly recalled without any recourse for the major impact it could potentially have had on my business. Thankfully I had a plan B which is absolutely crucial in this business to have at least 3 exit plans in case any singular route or strategy fails at any point.
In identifying the opportunities, It is not unforeseeable that there will be a drop in property prices this year which is great if you are planning to buy or if you are just starting out. The banks tightening their mortgage lending criteria will mean even less people will qualify and will create a further downward strain on the market. This means there will be some incredible opportunities over the next 3 to 6 months both for managing and buying properties, so it’s time to get your affairs in order sooner than later. For those who’ve thought about buying property, contact your broker immediately and start to ensure your paperwork stacks up, sign up to view your credit report if you haven’t already done so and assess if there’s anything that needs to be resolved now so you can fix it. This will be essential as banks become increasingly more conservative with their lending if this worsens.
Challenge No. 5: Social Distancing.
We are not getting to connect physically with people but ironically we are reconnecting with old friends colleagues and families virtually. I’ve reconnected with so many people that the hustle and bustle of life had drifted me away from. Now, in spotting the opportunity there’s a saying that your NET-WORTH is directly connected to your NETWORK and this is especially true with some property investing strategies that require that you leverage your relationships and build up your network. Genuinely find out what people are up to and purpose to go connect with your friends and colleagues to discuss your upcoming ideas and plans and you’ll be surprised at some of the reconnections you’ll make. Think about how the property strategies you are learning about and how it can potentially benefit people around you and start tapping into that network to develop your property business in 2020.
Every business faces challenges and difficult seasons, however, most opportunities for great wealth creation actually occur in these times of crisis. While the situation we face is unfortunate and we hope we can recover from it quickly, we must determine to succeed in this new normal.
