Market Update March 2020

Apart from helping our local communities and Action Groups to help the elderly and vulnerable who cannot get out due to the lockdown 

Supporting with food parcel deliveries, collecting medicines and phone calls to hear a friendly voice, we remain to be busy with and for our clients.

Being able to continue our work due to the internet and systems, this allows us to communicate  online to our clients from all over the world

We updated you last week with this document  Coronavirus Statement Update 25th March 2020 on what we have and are doing short term.

Through speaking to existing and new investors on Skype in the last few days, we are being asked for any new deals or what our thoughts are on the current and future market, so here are our thoughts and comments.

Also to take this opportunity again for the amazing messages of support from our clients in ensuring we and our families are all well and donations of masks and sanitizers. Very humbling and so kind.

Thank you

Any New Deals Available?

We have had a lot of investors who are very keen to purchase and asking if we have any new deals coming out soon.

We continue to have a very strong pipeline of more Off Market, Below Market Value, High Yield and High Cash Flow properties.

These will be coming out soon once there is sight of The Registers of Scotland and solicitors getting back to business as there is no point in issuing them now if there is nothing that can be processed unfortunately.

So bear with us for the moment and it will be worth the wait!

What Else is Happening?

Our world doesn’t stop.

We always have lots going on, always looking to how we can improve our top class and renowned service, communication and quality in everything we do. So…..

• We have a new website and Customer Management System, a large investment for us, that will be launched very soon.

This will enhance :the quality of the information, brand, client interaction and knowledge .

• We have been working with a number of Independent Investor Groups from around the world, doing group presentations on Skype and organising Group Orientation Days in Glasgow.
• We are working very closely and partnering with some Housing Associations in Glasgow and Greater Glasgow area to further enhance the Guaranteed Rent Scheme

Watch this space!

Any Thoughts on the current and future property market?

As of writing this the world has been under immense amount of stress both health wise and financially

Many businesses have been hurt or closed down as well as many jobs lost.

This is truly a very tough period in time due to the Coronavirus (COVID-19).

So let's look at things in a positive light.

This won't last forever as China, where the outbreak began has already started to stabilise.
We in the UK are about 8-12 weeks behind China, so, what we're going through will pass.
The economy will rebound.

People will begin spending once again.

COVID-19 has shocked the stock markets as well as local economies but it will likely bounce back once the initial threat of coronavirus calms down (and when the media stops scaremongering but that's a different topic).

After the predicted "V" shaped charts the economy will begin to stable due to government stimulus and a range of other factors.

Few forecasters have been prepared to nail their colours to the mast to date, though Capital Economics has suggested that a short sharp recession is currently the worst-case scenario.

The emergency cut in the bank base rate, economic stimulus from government spending pledges and the willingness of mortgage lenders to take a considerate view of short-term mortgage arrears, are designed to mitigate the impact.

Meanwhile, the security of a bricks-and-mortar investment in times of uncertainty should help to underpin values.

At this moment we have a pause in the housing market, without necessarily affecting longer term prospects.

So at this stage we are still very confident in the Glasgow market due to the strength and diversity of the city economically, the creation of the thousands of new jobs, massive expansion and relocation of new and existing global businesses in the city.

There remains an insatiable demand for property to buy and rent at all levels of the market and that is why Glasgow is the Buy to Let Capital of the UK and why we only invest in BTL property, as there is always a constant demand for it.

Glasgow has, and continues to have a very strong property market despite the current situation and is very different to many other areas in Scotland and rest of the UK.

We have been speaking to a number of agents this week and although they are working from home and no viewings can be done they are still getting a high number of enquiries for properties that are for sale, vendors wanting to sell, many multiple offers coming in on closing dates for properties seen before the lockdown and all of those having multiple offers on above the Home Report value!

All the 5 agents I spoke to in Glasgow we all confident about the continued demand for properties for sale and rent and the continued appetite for that when the market returns to normal soon.

Any thoughts on current investment strategies?

The investment strategies that will probably start to struggling right now literally are, Serviced Accommodation (SA) , Rent 2 Rent and maybe multi lets.

Why?

Because SA is built around holiday lets / short term lets and multi lets is for short term local workers looking for flexible accommodation due to short term working.

Rent 2 rent is well, built on nothing tangible at all so stay away from them.

Buy to Let, done correctly is and will always do well and are still generating monthly cashflow.

That is why BTL is the main strategy for us in Glasgow, not only for us personally but also for Alliance Property Group.

By benefiting from not only the immediate real market value discounts, but the long term solid strategy of the capital growth, residual income and market demand.

BTLs may be seen to be boring to some, but they work, they make real money and real wealth and income.

Also, we offer BTLs on the  Guaranteed Rent Scheme  for the next 10 years - only in the Glasgow City area the moment, but that will expand soon-  further enhancing the solid investment strategies we provide.

Property that has positive cashflow, like BTL, can withstand these market disruptions as people always need somewhere to live!

The current market uncertainty is worrying but not for the property industry, when you know what you're doing and buy correctly you make money no matter what the markets do. Up or down.

That is what Alliance Property Group does for its hundreds of clients, we ensure that you;

• Buy at the right property
• Buy in the right location
• At the right price
• With the right strategy
• With the right demand

This is why property investment is our main strategy and focus, personally and has created us true financial freedom.

It’s not stocks and shares because they are just too volatile, one day it's up the next it's down!

Solid investments are the place to be, bricks and mortar.

Creating real wealth and income.

Any advice?

One of the other main thing we have learned in having built a highly successful and profitable portfolio is:

Do not wait, buy a property now, it's a long term game but it'll always rise again, it's cyclical.

Property is the world’s best class asset. For sure.

We have long term friends who know what we do and see the success and wealth we have in our lives, primarily because of property and they still say they wished they would have bought a property or ‘I will buy a property one day’.

These are the same people that have been saying that for a long time, still don’t have any property and continue to spend the money they save or earn on items they don’t need and that don’t make them money.

They have no residual income and is highlighted at times like this they all wished they did!

If you are just starting out, get in the game, do not wait.

If you have lumps sums of cash in the banks, get it to work before you start paying the banks to hold your own money!

Despite all the upset COVID-19 has caused there is no doubt a lot of opportunity ahead so keep positive, the initial shock will pass.

Don't waste it!

Have a Great day and happy investing!