Welcome to this week’s Ask Rob & Rob.
Liam starts things off by asking about Crewe. By using the 18 year property cycle he can see that at this point in the cycle last time Crewe enjoyed explosive growth. Should Liam take the risk or should he play it safe in Manchester or Liverpool?
Rob and Rob are happy to help – especially when they get to chat about property cycles.
This is something many of us will be wondering as we enter this phase of the cycle. Manchester and Liverpool are performing really well at the moment but does that also mean that there is no capital growth left?
HS2 is also a massive factor to consider as Crewe is going to benefit in a major way. Crewe is set to be one of the most well connected cities in the country. Would it be foolish not to get in now?
There’s a lot to consider!
Next is Liam who’s been practising what Rob and Rob preach. He’s been putting away 10% of his rent for voids and repairs, but he’s unsure where to put that money.
Does keeping everything in one place make it easier or harder to keep track of?
Hit the listen button and enjoy Ask Rob & Rob.
Do you have a property related question for Rob & Rob? Whether you’re a first time investor or a seasoned pro, you could feature on our next episode. Simply call 013 808 00035 and leave a message with your name and question (normal UK call rates apply).
Or if you prefer, click here to leave a recording via your computer instead (http://www.speakpipe.com/thepropertypodcast) .
The next question on Ask Rob & Rob could be yours.
Do you love property and are keen to connect with likeminded people? Head over and join the conversation over in the Property Hub forum. (https://thepropertyhub.net/forum/topic/9301-tpp284-inspiring-property-journeys-from-everyday-investors/) Our active Hubbers are talking property on a daily basis – from breaking news to sharing hints, tips and some very interesting progress journeys. Pop over an introduce yourself today.
See omnystudio.com/listener (https://omnystudio.com/listener) for privacy information.
[Music] hi I’m Rob and I’m Rob and this is ask Rob and Rob yes thank you for joining us for yet another ask Rob and Rob the podcast where we take your property queries and turn them into answer leaving you a little bit wiser inside 10 minutes today Mike and Liam provide those questions so just before we hear those let’s have a quick recap of how you can send in a question of your own yep there’s two options you can call in on 01388 035 you’ll be greeted with with a friendly answerphone tone and you can leave your message there or you can go to the property hub.net askk that’s the property hub.net askk either way super simple and luckily Mike agrees because he’s got a great question on a really interesting location hi Rob and Rob it’s Mike here from toaster thanks every so much for your podcast I’ve been listening for a while now got some really great insights from it and you’ve really inspired me on a potential journey to become a bolet investor with that in mind I’m looking at buying my first bolet in the near future and I’m looking like a lot of people at the northern major cities however I’ve also been looking at some smaller places one in particular that’s kind of caught my attention is crew and my instinct tells me that this could be a good investment however looking at current prices there’s been sort of minimal growth since the crash in 2008 however looking at prices in the past from 2000 to 2008 which is kind of where we would be just entering that point in the new cycle prices grew rapidly and and pretty much doubled during that period so my question to you is do I go for a place like crew where there is a lot of fundamentals around hs2 but there’s not been a lot of growth there’s not a lot of noise about it or do I stick to a safer bet um or what seem to be a safer bet in terms of the bigger cities up north like Liverpool and Manchester cheers Robin Rob any help would be appreciated thank you thanks Mike I really like this question because I think a lot of people will be struggling with this as well not just crew but many areas around the UK but crew is a great example so what do you have you have an area with great fundamentals you got already forget in the future great transport links major employees in the area great rental demand so it’s ticking a lot of boxes yet there’s very little Capital Growth and I’m completely fine with because it’s just not crew’s turn yet won’t be long before crew gets a go with the Capital Growth but it’s just where it is in the cycle right now so you’ve mentioned Manchester Liverpool and yes we talked about those areas kicking gone before they did and people who listen to us on the podcast way back when when we predicted Manchester and Liverpool would do well have really profited but here’s the thing for people who invest in crew I think you’re going to really profit as well it’s easy to follow a trend and yes if you get into Manchester and Liverpool right now you’ll do very well from Capital Growth because there’s a long way to go but if you’re patient and happy to accept maybe no Capital Growth for you know a couple of years but then enjoy an upswing then places like crew will do you just fine and the great thing about crew is yes it would do just fine on its own anyway but you’ve got the hs2 effect what hs2 will do for crew is is nothing short of amazing yes it will be a main hub but what it means is as a main Hub of hs2 that there’ll be trains leaving there every 10 minutes speeding off to different areas of the country you’ll be able to get to Manchester Liverpool Birmingham and London in less than an hour some of them a lot less than an hour so crew will become one of if not the most connected City in the UK an amazing feat for what is still a small town so yeah right now no Capital Growth but don’t let that put you up be patient and I’m sure you’ll see it when the cycle gives it a go and it’ll get that extra boost from the hs2 effect as well okay so when you’re investing in property you’re hoping to get that Capital Growth and you’re hoping to get some income as well and Liam has a question about the second of those oh hi Rob and Rob it’s Liam calling thank you for everything that you guys do it’s really helped my learning as I sa my first deposit on an investment my question would be you you guys always say to keep 10% aside for things like avoids uh and repairs but when the rent gets paid into your accounts do you then pull 10% into another account if you put aside for rainy days Etc or does it all stay in one big poot i’ would like to know the answer thanks a lot for everything you do bye thank you Liam really good question I’ll tell you what’s probably best to do and then I’ll tell you what I actually do so if you’re keeping 10% aside then the best thing to do is probably to transfer it straight out of your account when the rent comes in into a separate account so it’s there you can’t be tempted to to touch it and there’s a clear separation between what you’ve got set aside for an emergency and the remainder of the rental income which can be building up ready to form a deposit for your next investment what I actually do is just leave it all in the same place because I’m pretty disciplined about saving anyway and so I don’t feel like I need to have that separation so really it depends on you and what’s going to work best depending on how you treat money in general but having a separation probably is the best because it means you get to see that 10% building up and if you’ve overestimated how much you need which hopefully is the case then you’ll be able to see that and transfer on back across to give a little boost to your deposit fund quick aside on this as well 10% is a good rule of thumb for people who are starting out because you often have people getting into trouble when they really stretch themselves and they don’t keep enough aside and then if something goes wrong they don’t have the funds to do anything about it in reality though you might end up needing less and counterintuitively you don’t need to save up quite as much the more properties you’ve got because yes the more properties you’ve got the more that could go wrong but the chances of something going wrong in every property all at once is very slim whereas if you’ve only got income from one property you’re more vulnerable another thing for everyone to keep in mind is be conscious of the type of portfolio you have so if you have a portfolio of old Victorian teres then the chances of things going wrong are probably a little higher compared to somebody who has a portfolio of only Apartments so you can adjust the amount you save based on your portfolio mix and you’ll quickly as your experience grows get a feel of how much is right for me personally once the pot gets to a number or around a number I’m happy with then I know that will take care of anything pretty much in a portfolio there’s not a huge amount that can go wrong with the type of properties that I have I’ve got a sense of what any major problems will cost within my property so once I get to that magic number then I can transfer any excess funds out so one question about making money one question about keeping it and saving it so hopefully we can consider that a win for an Ask Robin Rob podcast so as that’s gone well we may as well come back next Tuesday and do it all again where we’ll answer more of your questions and remember we’ve got the main property podcast on Thursday so do not miss that so until those wonderful events occur take care bye-bye bye-bye