Your Property Club blog feed

Congratulations to Charlotte's promotion as 2nd In Command!

info@yourpropertyclub.com (Brett Alegre-Wood)

Hello all,

I am sure you will be as pleased as I am that Charlotte has agreed to be my 2IC (2nd In Command), she will still have the title of Property Manager as she is comfortable with that. She has supported me over the last year and has grown along with myself and YPC Lettings.

I personally thank her from the bottom of my heart for all the support that she has given me and hope that she has enjoyed the many challenges that we have faced over the last year - couldn't have done it without you Charlotte!

Her day to day role will not alter as she's been in the background already doing the 2IC job but now officially she will be the point of call if I am unavailable - although that's not actually very often so you've got off pretty lightly Charl ;-)

Charl used to work for me at Belvoir and I have watched her grow into a beautiful very intelligent and funny young lady over the years.

I think that this year will bring a lot great things for our clients and YPC Lettings and Charlotte's promotion to 2IC is the start of that ball rolling.

I am very lucky to have such a wonderful team around me and I am not taking anything away from the rest of them in the lines above - everyone that I have has been hand picked for their different qualities and the personality that they bring to YPCL and together it really is like coming into a family each morning, they all care about the company and all the clients.

Congrats again to Charlotte,

Kirsty Knightingale,
YPCL Managing Director

Why I dismissed the draft EU Legislation on restricting Buy To Let Mortgages...

info@yourpropertyclub.com (Brett Alegre-Wood)

Hey guys,

I have had a lot of questions about the impact of the EU draft legislation to regulate buy to let mortgages and how it will affect the property market in the UK.

First of all I am very familiar with this type of legislation, it's the exact way we do things in Australia. Linking income to the purchase of a investment mortgage application is how almost all mortgages have been done for years.

Let's step back for a minute... Would you lend money to a person you probably don't know and who won't tell you what other debts, commitments, and assets they have?

Let's say this person has 20 properties, ?3 million in debt. ?500,000 is equity and a negative cashflow of ?3000.

Surely you would want to know this information before deciding to lend to this person and more importantly you would want to take this into consideration before you lent money to them.

So the notion the EU presents is not so absurd.

Even if the property they wanted to buy had a cash flow of ?300 per month. We all know that a cash flow positive property can change dramatically with interest rate rises and a few extended void periods.

Despite this, this is exactly how the UK mortgage market has run for many years. Now I am not complaining, I benefited from the easy mortgages of the early 2000's, I built my UK portfolio on the back of this. So I am contented and so should all of the other people that jumped into property during this period and build a portfolio.

However many people did buy far too many properties than was prudent.

So I personally don't think it is a bad thing, it will slow the building of oversized portfolios that lack cash flow and equity down enough so that people have to think to buy and therefore, hopefully people won't be so easily lead by sharks and slippery sales people. It might not make people more intelligent in choosing property but hopefully it will force them to think harder about each property they choose.

So that's the positive side as I see and I think if you didn't know any different you wouldn't bat an eyelid about it.

Most peoples concerns about this, besides a bunch of old failed politicians (the EU) butting their noses in where no one wants them, is that the changeover from the current system will cause massive disruption to an already fragile property market.

I don't believe this to be the case and let me explain why.

We are in a recession or downturn whatever you want to call it. I don't think there is any real political will from any corner to potentially screw with the way things are right now and head into the unknown. So in the first instance I don't think anyone wants this now. So even if it does come into effect I think you will find it's at least 3 to 5 years down the track.

Secondly I think by the time the EU sloth gets its act into gear and implements this (which I think it will eventually but not for some time) we should be on the way to recovery and on a much better footing. So the impact it will have should be minimal.

Who it will affect?

This is the real question I think. There may be an initial slow down when they do introduce it but this will be because the industry has to get used to a whole new way of doing things. Much more information will be required from buyers and lenders will have to get used to the requirements as well. This will cause a backlog of work and longer approval times (if that is presently possible).

Those with larger portfolios should be ok because they will be considered professional investors and will have access to some lines of portfolio mortgage money that smaller lenders don't. Unless of course you have a small income in which case you won't be able to remortgage and the only way out will be to sell some property or hold the property. People aren't stupid so they will hold until it's suitable.

Despite me saying this the media is going to try and make you think that that's exactly what everyone will do. Run out and sell, flooding the market and driving prices into a free fall. Will this really happen? Is this what people did when the economy slowed down in 2007/2008, no they held onto their property.

Those small investor that are just starting out and have decent incomes will also be fine.

Understand this legislation is an attack on low incomes and high consumer debts so they are the people who will struggle to build a larger portfolio quickly. The operative word is 'quickly' here, you'll still be able to do everything you ever did but just not as quickly.

Oh and by the way, watch out for the low-doc lows come back, the FSA may have tried to kill them but I am sure they'll come back in some form. This will mean that as long as you have the equity the whole legislation will be irrelevant to you.

Irrespective of what the legislation looks like or how long it takes you will still have no choice but to build your portfolio to secure you future. So call the team and find out how to do it in a directed and purposeful manner on +44 (0)207 812 1255 or directly on their mobiles.

Live with passion,

Brett Alegre-Wood

WOW - Woolwich is back to lending at 75pc

info@yourpropertyclub.com (Brett Alegre-Wood)

Hey guys,

Great news! Woolwich have entered back into 75% Loan to Value Lending for Buy to Let!*

Why don't you give us a call at the office and we will put you through to a mortgage broker for more advice. Call us on +44 (0)27 812 1255

Look for forward to hearing from you,

Makeda Henry
Director of Client Services

*As always it's subject to status. Speak to a mortgage broker for more information.

2012 is the end of the housing 'crisis'

info@yourpropertyclub.com (Brett Alegre-Wood)

Hey guys,

If you follow the 18 property cycle then 2012 is the year that it will end as its been 14 years up and 4 years down (even though it hasn't been 4 years down) it was 1 year down and 3 years across. None the less any year across is still as down year because of inflation. If you want to understand more about the Property Cycle, watch this short video:

http://youtu.be/9eyBhU-lg0M

Roy Yacoub
Operations Director
===
'Housing Crisis to End in 2012 as Banks Loosen Credit Standards'
dsnews.com: by Krista Franks 24th Jan 2012

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters. However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings. Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes (the clearest sign yet of an improvement in mortgage credit conditions).

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV. While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says 'any improvement in credit conditions won?t be significant enough to generation actual house price gains,' and potential ramifications from the euro-zone pose a threat to future credit availability.

YPC email service is down right now...

info@yourpropertyclub.com (Brett Alegre-Wood)

Hey guys,

You maybe experiencing problems reaching us via email today. There seems to be a technical fault with our emailing system that isn't allowing certain members of the team to retrieve or send emails.

If you have an urgent inquiry, please call us on +44 (0)27 812 1255 or your PC directly on their mobiles.

Alternatively email us on info@ypc-group.com, addressing who it is that you are trying to reach, with your contact number and we will forward the message accordingly.

Thank you for your patience in the matter, hopefully it should be resolved shortly.

Updates will be posted.

Team at YPC Group

新年快樂 Gong Xi Fa Cai. Happy Chinese New Year for 2012

info@yourpropertyclub.com (Brett Alegre-Wood)

To all our Chinese and Asian friends around the world...

新年快樂! (Happy New Year!)
Gong Xi Fa Cai! (Wishing You Prosperity)

It means 'wishing you prosperity' in Mandarin. Chinese New Year or Lunar Festival is the most important celebration in the Chinese calender.

This year is the Year of the Dragon, and if you look up in the sky tonight, you'll see a full moon to mark the beginning of the festival, lasting 15 days where millions of Asians around the world will end the celebrations with the lantern festival.

If you were out last night celebrating the Chinese New Year, we'd love for you to send us pictures from wherever you are in the world. Just email Fam on info@ypc-group.com.

Lots of love from the team at YPC Group

Certainty in an Uncertain World

info@yourpropertyclub.com (Brett Alegre-Wood)

Hey guys,

I think the public are slowly realising that property is the only long-term safe investment in an uncertain world.

According to the latest Residential Lettings Survey from the Royal Institution of Chartered Surveyors the residential property market in the UK is seeing rising yields on rental properties as result of the increased tenant demand and rising rents. This is fuelling a very buoyant and expanding lettings market that is expected to stay this way.

My love for property
My love for property started when I became an Estate Agent in Clapham, South London. I was showing a commercial property with flats above, to an investor. While walking downstairs from the residential part of the building, Lesley (the investor) said to me ?you should buy something like this yourself Erroll and let it out?.

I was only 18 years old; I had not thought that I could do such a thing, my belief back then was that these sorts of deals were for big shot investors like Les. It was like I had muted Les?s voice for a moment. I took a took a moment to imagine myself buying properties for investment, letting them out and enjoying the fruits of the rents I would receive.

That?s where my love affair with property began, I have invested in buy to lets, renovated properties for resale and converted a 17th century barn, all within a space of 32 years.

My family (wife and kids) and I moved to the Balearic Islands, by the Mediterranean sea, which I now admit was more like a mini retirement, mixed with running our own business. We lived our dream life there before returning back to the UK.

After returning back to the UK, all I wanted to do was empower and educate new investors, I became a mentor and presenter for the property education company Property Mentor. I loved assisting Property Mentor delegate with their investment purchases, helping to evaluate their deals and lots of hand holding. I enjoy seeing people free themselves from the ?rat race ?knowing now that they can take control of their lives once more and not live in fear.

Now I have been appointed Sales Director of YPC Group by Brett Alegre-Wood. I am truly looking forward to helping the thousands of clients at YPC receive the best portfolio management and education from the largest company in this industry of its kind.

Why UK properties are a safe bet over the long term

Investing in property is the surest way to find stability in a very uncertain world. With all the shifting going on in our lives we need to have some stability with our finances.

Property investing in the UK has always proven to be a good bet over the long term, as property prices here have always recovered and this time will be no different. Since after World War II this trend has continued, which can be verified by a reliable statistics.

If the public truly gets it, they will be able to take hold of their lives once more and begin to design the life they want as oppose to being driven by every new headline.

UK Letting Market the strongest it is ever been

For those of you ready to invest in London you?ll be pleased to know that rents in London have picked up the fastest pace. Outside London rents have rose modestly. This is fuelled by the positive tenant demand across all UK regions, also backed up by the RICS Report.

So where should you be investing now?

2012 is the year that serious investors will take advantage of the UK market, to develop their property holdings. Looking at the statistics, we can safely say that investing in UK property for the long term is the most secure type of investment. Especially now with the uncertainty surrounding the Euro zone, cash rich investors from the Far East are investing in the UK.

This is showing an increasing obvious demand for UK property which will naturally increase profit margins in the UK property market. And not to mention the inflation in the UK being at 5.2% and the bank base rate at 0.5%, those with cash in the bank are losing their wealth: I say be a smart investor and shift your money from the banks and invest it into UK property.

So we do have a choice as to how we live our lives even in these uncertain times. As Warren Buffett said ?Be greedy when others are fearful and be fearful when others are greedy?

While the uneducated investors continue to be fearful, be greedy and give our team a call on 0207 812 1255.

Erroll Thomas
Sales Director

Great Buy To Let news for all investors

info@yourpropertyclub.com (Brett Alegre-Wood)

Hi Guys,

We've just heard from Karen Wright, Head of Mortgages at The Buy To Let Mortgage People, that Leeds Building Society has made a positive start to 2012 in the mortgage market. Here's what Karen had to say...

===

'Hey everyone, there's some fantastic lending news from Leeds Building Society. They are now lending up-to 80% on new build properties: flats and houses. (wow)

This just reiterates the fact that the property and mortgage market in the UK is always moving up and up. Let's move with it and take full advantage!

Spread the word,'

Karen Wright
Head of Mortgages

10 Lessons that will stop you falling for the great US Property scam?

info@yourpropertyclub.com (Brett Alegre-Wood)

Hey guys,

So much is being touted around about US property being a great investment but does it really stack up and offer investors the truly great return that salespeople would have you think? And how is the investment likely to look in 3 to 5 years time after the sales hype has waned.

Now let me start off by saying that I don't sell US property and I never have. However, I am an expert in building investors property portfolios regardless of where the asset (or property) is situated, including the US. I have hundreds of clients who have property in the US, so you might say that I am qualified enough to comment on them.

Whilst many of my comments throughout this article may seem negative towards US property I make these points in order to get you thinking about the possible risks, sales person tricks and their deceptions to arm you for the barrage of opportunities that will no doubt continue into the coming years.

This article is not meant to provide you a solution, an alternative nor sway your thinking, I am not going to suggest areas to invest or not to invest. The US is a massive marketplace and I would be foolish to act as if you cannot make money there or say it is a bad place to invest. It is however meant to make you think before you jump in and buy and give you a working checklist of things to consider and seek deeper information about. Like any investment, done well you can make money, done poorly it can cost you the shirt off your back. I want to make sure that you ask enough of the right questions upfront to make sure it's the first.

So let's take a look, I'll begin with a story.

Malcolm was a client of ours who had just started investing, he'd bought one UK property off plan and before we could get him the second he had discovered the 'amazing' property market of Detroit. In fact it was so good that he had tried to pitch me into selling it to my investors. I discussed many of the points we will discuss here. In fact maybe I wasn't hard enough with him, regardless his mind was made up and he bought two properties at $30,000 each. They came with 2 year rent guarantees and he was over the moon.

About a month later he actually called me to ask how he could get hold of $100,000, actually asking me if I would lend the money to him. Of course I declined asking him to be careful and consider his risks.

He didn't listen instead he used his credit cards and a loan from his mother to buy the properties, 5 in all and for a time he was over the moon. At one stage he compared how much better his US property was than UK.

Anyway everything went along great for about 9 months until one month the rent wasn't paid, he phoned the sales agent but the phone was dead, he eventually spoke to an agent in Detroit who said that pretty much noone lived in the area.

Turns out that Mal had been taken for a ride on two counts. Firstly his $30,000 properties you could pick up for around $5-$7k at the time from a local agent if he'd just taken a trip and secondly, their had never been any tenants, the houses were boarded up, not just the one house the whole street and most houses in the area. The rental guarantees had just been the agent taken the massive commission they made and drip-feeding it back to him.

Lesson 1 - Take a trip to the US: If it's worth investing in then it's probably worth taking a trip to view the property, the areas and meet the people who will be managing the property.

Lesson 2 - Don't buy through an agent in your country: They will normally not have your best interests at heart, they won't really know the property, area or the country (ask if they have been there or own property themselves.)

Lesson 3 - Be careful with Rental Guarantees: Ask yourself where is the money coming from to pay for the guarantee and what is backing the continued payment of it.

It was a pretty rough lesson but illustrates my first point - take a trip and see the properties, don't trust a salesperson with a glossy brochure and a promise of a rental guarantee. This is especially true when bank lending is not possible, that should immediately ring warning bells in your wallet.

If you're not sure of what I am saying then go to Google.com.au and type in 'us property scam' and also have a look at Neil Jenmans website www.ethicsinrealestate.com.au they both provide an interesting look at the lies, BS and overall misselling of US Property.

Another story from Las Vegas this time - Damas, a client had bought a beautiful 4-bedroom house on the outskirts of Las Vegas, it was sold as being a sure thing, after all everyone knows Las Vegas.

The property was bought off plan through an agent in the UK. His first concern was that about 6 months after paying the initial monies to secure the property the agent went bust, that wasn't too bad as he had the solicitor and the developer contact details so he thought it would be alright.

Then the credit crunch hit, and it hit Las Vegas hard, prices dropped and sales didn't happen, the first letter he received stated there would be a 6 month delay, the second a further 12 months and finally the developer went into bankruptcy.

Despite 4 years and a further $12,000 in legal bills they still don't have the property nor there money back.

The problem here was they were buying into a brand new area, no shops, no infrastructure, no local demand for the property, so once the recession it, the area had no potential and no sales, it was inevitable that the site crashed. To a degree Damas had been blind-sided by the name Las Vegas rather than researching the local fundamentals.

Lesson 4 - Be very careful when buying in a new area without established fundamentals: If there is a downturn, these are the first places to get hit.

Ok, one final story then we'll get into the ways to overcome and avoid all this.

I have a mate (loosely used, sorry Dave if you are reading this), we went to school together, he was the guy that apparently made a million in property after a few years out of school but interestingly by five years was suspiciously missing in action, then the stories started to emerge about how he had run up massive debts and taken peoples money.

Anyway he turned up selling property in Florida some years later, he contacted me as I also was in real estate and wanted to sell me his property. Of course I declined, but we have kept in touch regardless.

About 3 years ago he called me to talk about these great properties he has and that I should sell in my investors.

They were worth $300,000 odd at the height, now we could sell them for $150,000. Great deal you might say... Well not... Dave was able to buy these for between $50,000 and $75,000 and the difference he would split with me. I would be a gazillionaire overnight he implied.

Obviously these properties were being bought in their hundreds by unsuspecting and naive investors thinking they were getting a deal. Again learn the lesson...

Take a trip or do a huge amount of local research.

Now the price wasn't even the biggest problem with these properties, it was the service charges that you had to pay each month, around $2000, they were mostly in gated communities so they had pools, tennis courts, and onsite managers and for a lot of them they were apparent ghost towns, the overseas holiday makers had all gone home and left deserted streets of empty houses. Not exactly the picturesque Florida sunny dream that one would have in mind.

Again, read the fine print and prepare a full cash flow. If you don't have one then speak to the team and get one from us, it could save you thousands.

Lesson 5 - Research: Research the local area, Prepare a cash flow and most importantly Read the fine print.

If the bank won't lend, don't buy the asset...

My general rule is if a high street or normal retail bank isn't lending (or won't lend) then don't buy the asset... There is always a reason why they won't lend and it's normally because the asset is overpriced and the bank will find this out whereas a naive investor may not, especially when the sales presentation is wrapped in lots of positive sales points about the area and coated in 'the deal of the century' icing. Or it could be that the security (in this case property, hotel room, student rental etc) is far too risky for them to lend.

Don't be fooled into thinking that vendor finance is a good thing, many times it's code for 'I'll transfer the asset to someone else', sorry let me be more blunt 'I'll transfer the problem to someone else and make a pretty buck doing it'.

Lesson 6 - If the Banks won't lend you have to ask yourself if it is really worth buying: Vendor financing doesn't count.

Hermetically Sealed and Boarded up...

We had the partner of our building inspector in the UK move to the US to expand the business there. Their initial thoughts were positive until they moved and realised that there was no new homes being built, in fact most developers had simply stopped or gone out of business. So they changed the focus of the business. They decided to work with banks and offer a Hermetic sealing service. What is that? I hear you ask...

Well that's where the bank repossesses the property and then after holding onto the asset for a long time they will take the decision to hermetically seal the property. It goes beyond boarding up windows, this service makes the property airtight, they pump out any water in the tapes that may freeze and bust pipes, the sewerage, they seal every window with plastic and boarding and they pump the place full of pesticides so nothing decides to take up residency in the long wait for a buyer.

Let me ask you - Is this the sort of investment you really want?

Selling taxes

Another client, Mary had been advised to buy her US property in a company name because of the additional deduction benefits. Her property in Florida was looking good for a while but as the market overheated I advised her to consider selling it. The cash flow was costing her $2000 per month to hold which was unaffordable.

It was 2006 and she found a buyer quite quickly and at a price that would cover the mortgage, costs and agents fees... However because she had bought in a company name she was subjected to a selling tax she wasn't aware of, it meant that she lost $25,000 on the transaction. Although this was still better than the $2000 a month shortfall on the property.

Obviously the lesson is before you buy, know the implications of exit strategy.

Lesson 7 - What is your Exit Strategy?: What are the Implications and costs of selling and who will buy the property when you sell?

What's the true value really, it certainly isn't what it was!

The recent recession has decimated values all across the United States, I've heard more stories than I can count of million dollar mansions selling for more than half price. It's no longer enough to assume that just because a property once was worth a million that it still is.

The fact is whatever the property company or salesperson tells you ignore the old value, its a made up number and reflects a bubble (in some cases a massive bubble) and the reality is it may not get back to that number for many years. Instead focus on finding what the current market value is, that's the amount it will sell for in todays market.

Reject the price when the salesperson says that it was worth a million and it will go back up there once the recession is over. It may well do but it could be a decade or more.

Buy based on current fundamentals rather than what was!

Far too often I find people talking about areas that have had their day, they may have been planned to be the next Las Vegas or an extension of a large town, but now many of the projects have been stopped the funding dried up and they are a shadow of the plans that were. Make sure you are researching what is already there and already established, not the plans that 'were' but were removed when the recession hit.

Lesson 8 - Always consider the Current Market Value and the Current fundamentals: and not what the valuation and fundamentals were in the boom. None of that counts now.

Eating your investment one percent at a time...

Investing in the US, if you don't take into account all that we have been discussing, you will be a LONG road to recover, despite the US acting as if everything is alright and they are fine the fact remains that the are printing more Greenback (US Dollars) than ever and this despite what politicians would have you believe will cause inflation within the country and you will see a gradual (perhaps even dramatic if they keep printing at the present rate) decrease in strength of the dollar.

So despite your investment growing 10% and yielding 10% the currency deflation against other currencies will mean you could actually be losing money in real terms. This is particularly true if you live is the Asian economies that are supposed to see their currencies strengthen against the dollar.

Portfolio planning considerations - what are your choices?

Ok so I am often misquoted as saying that I prefer capital growth to cash flow when in fact I like and encourage both. However I do think the capital growth in US property is still a long way off and therefore the yields are what solely attracts people. There is nothing wrong with this as long as you go in with your eyes wide open.

This simply isn't the case with many people that are expecting a high yield and early capital growth, but in terms of portfolio planning many of the properties being sold are almost purely cash flow assets and won't grow in any hurry so you're left getting your 10% yield less 10% inflation (and if you don't believe me look up the word 'Price Hedonics' in Google and you may begin to understand how the US massage figures to get lower figures.)

The truth is that most people would be far better off aiming for a decent yielding asset in an area that is more likely to have capital growth. They will make more money this way and be able to buy more property sooner which would amplify their results.

Lesson 9 - Always consider how 'Inflation' and 'Price Hedonics' are going to affect your investment long term. 10% growth with 5% inflation and Hedonics adjustment of 5% is ZERO growth.

Commissions made on sales.

If all of the above doesn't convince you that the US is a steer clear territory for investment or at least follow my advice then maybe the next point is. In most sales jobs to earn really good consistent money you have to be disciplined, know your product, understand the clients needs etc etc... The problem I see in US property is that so many people that are selling it have never been there, only just started selling it, don't own it and worse of all they make huge commissions which are clearly unsustainable. This commission is coming straight out of your purchase price.

In most markets that I consider mature markets (US included) an estate agent will earn around 2 to 5% of the price as commission. For companies selling US property abroad the scale starts at 10% and goes as high as 25%. That's right folks, a massive quarter of your investment could be going straight to the back pocket of your salesperson. Actually that isn't correct, most of it will go to the owner of the business.

Lesson 10 - Find out how much Sales commission your agent is earning form you: Obviously don't expect them to tell the truth. You may need to speak to a few different agents to find out the truth.

Good, so let's just recap the 10 lessons that I hope you avoid ever having to experience...

Lesson 1 - Take a trip to the US: If its worth investing in then its probably worth taking a trip to view the property, the areas and meet the people who will be managing the property.

Lesson 3 - Be careful with Rental Guarantees: Ask yourself where is the money coming from to pay for the guarantee and what is backing the continued payment of it.

Lesson 4 - Be very careful when buying in a new area without established fundamentals: If there is a downturn these are the first places where fundamentals go out the door.

Lesson 5 - Research: Research the local area, Prepare a cash flow and most importantly Read the fine print.

Lesson 6 - If the Banks won't lend, you have to ask yourself if it is really worth buying: Vendor financing doesn't count.

Lesson 7 - What is your Exit Strategy?: What are the Implications and costs of selling and who will buy the property when you sell?

Lesson 8 - Always consider the Current Market Value and the Current Fundamentals and not what the valuation and fundamentals were in the boom. None of that counts now.

Lesson 9 - Always consider how 'Inflation' and 'Price Hedonics' are going to affect your investment long term. 10% growth with 5% inflation and Hedonics adjustment of 5% is ZERO growth.

Remember these before you jump into buying in the US (or any foreign country) and call the team for some qualified advice on +44 (0) 207 812 1255.

Live with Passion

Brett Alegre-Wood

2011 YPC closing times for Christmas and New year..

info@yourpropertyclub.com (Brett Alegre-Wood)

Hello all,

Oh my goodness! it's that time of the year already?!

Everyone at YPC would like to wish you a massive Merry Christmas and a brilliant New year for 2012.

Here are our festive closing times...

Closed from Thursday 22nd Dec - 1pm to Monday 2nd Jan 2012

back to business

Opened Tuesday 3rd Jan 2012 - 9am

(if there are any urgent issues, please call your PC on their mobile)

Catch YPC's christmas antics later today here and on Facebook... we're doing a chrimbo lunch - Jo cooked all the veg (including brussel sprouts.. bluergh!) and Makeda baked her famous cakes. And to top off this years hard work, we'll be heading off for some laser-tag!

Hopefully no one throws-up christmas lunch during laser as we'll be leaving shortly after!

Catch you in the New Year of 2012

YPC Lettings new "game changer" London Property fee structure and how its bringing some honesty back into this industry

info@yourpropertyclub.com (Brett Alegre-Wood)

Hey guys,

Right from the beginning of YPC's history, I've always setup each business with the view of effortlessly managing my own portfolio of properties. Therefore giving clients as good a service as I will expect for myself. This is still the philosophy today.

On top of this I have always believed in being upfront with charges, so I have been on a mission of exposing the deceptive practices of many property companies out there. Having said that, I want to eliminate any hearsay about YPC Lettings by introducing a new way of charging you for our services.

YPC Lettings offers you the ability to manage all your property with a single point of contact. Unlike a normal lettings company who are restricted to a specific area around their office. YPC Lettings have the job of overseeing any property purchased by you in any area in the UK. This makes your job of managing your properties and building a portfolio so much easier.

There are two major fees in the letting and management of your property; Tenant Find Fees and the Ongoing Monthly Management fees.

I will say first that the following is applicable to London properties only, outside London different fees structured accordingly.

Tenant Find Fees

In most cases you will be charged an upfront fee out of your first month's rent. This is only charged once an agent finds you a tenant. In YPC's case this is usually around 5% to 7% depending on the local agent we use for the property.

A normal agent will charge you between 7.5% and 11.5% for this service. This is solely to find a tenant and set up the AST or the 'Assured Shorthold Tenancy Agreement' (which is the formal agreement between the Landlord and the Tenant setting out all the terms).

I will add this though, some agents will offer reduced fees each month to try and get your business but be warned they will also reduce the service they provide when things go wrong. And watch how quickly you'll realise the true expense of paying peanuts. They are also not totally upfront with the 'little extras' they charge i.e £50 for registering a deposit, £15 for re-issuing you any paperwork/statements etc...

Ongoing Property Management

If you also want the property managed, which as an overseas investor I would say: you simply do not have the choice (I'd even suggest that unless you are an experienced Lettings Agent no one should attempt to do it themselves). In any case if you want management you will be charged a monthly management fee.

YPC Lettings will charge you the difference between the Tenant Find Fee (5%-7%) and 12.5% so if the tenant find fee is 5% you will be charged 7.5%, bringing it up to 12.5% for the first year. This is where YPC Lettings provides a major point of difference which I will explain later why this will save you over other agents.

Here are a couple of typical deceptive behaviors practiced in some London letting agents:

London Lettings Deception #1 - The 2 Year AST Deception
Firstly, let me expose one of the most deceptive practices of London agents. Most London agents will suggest that you accept a 2 Year AST agreement. There is absolutely no reason for this except that they will charge you the full two years of the Tenant Find Fee upfront. This in many cases will cost you your first 2 or 3 months rent, because they charge this fee upfront.

London Lettings Deception #2 - Not registering your deposit within 14 days because they used the money to pay their commission
In addition to the 2 Year AST Deception many agents will take money out of the deposit that tenants will pay you and expect you to register it on time, this by UK law must be forwarded to a recognised deposit scheme within 14 days. In many cases this puts the Landlord in breach and the consequences can be that the courts award the tenant up to 3 times the deposit.

What does Fully Managed really mean?

Before we consider YPC's unique advantage, let me explain the differences in the definition of Fully Managed by many agents. Fully Managed by some agents actually means; in the worst case - only collecting the rent for you, maybe they will also chase small arrears for you, but they will normally fail when it comes to managing small maintenance issues, forget about handling serious rent arrears, serious maintenance, and only the top agents (YPC included) will manage the legal process and project management.

Very few if any will not charge you considerable fees for the hours they spend on many of these tasks. They consider them outside their remit. In many cases, too often to name when something happens the agent will simply pass the problem to the landlord and expect them to deal with it. This isn't the way of YPC.

Why YPC provides the ultimate management?

Our philosophy has always been that we will do everything for you. Rather than worrying about what we should do, we will just get it done. Sure you will still be responsible for direct costs involved but we never charge for our time outside of the monthly management fee's (except where major project work is required and the team have to go onsite, manage contractors etc).

Why YPC turns out to be massively cheaper than other agents?

Because of the new way we have chosen to charge, rather than like most agents who will charge a flat fee for every month (and possibly a Tenant Find fee on top). With YPC you pay the Tenant Find fee to the agent (a maximum of 12 months, we never suggest a 2 Year AST as I already explained) and then you pay the flat fee per month to us. This means that having paid the Tenant Find fee upfront and as long as your tenant stays over a 12-month period you will only be paying YPC's management fee of up to 12.5%, this can save you literally thousands of pounds in management fees over the years.

How can YPC afford to charge so little but offer the most comprehensive service in the UK?

The answer is our size, we are approaching 1000 properties under management which makes us one of the largest residential investment property management companies in the country. It's this size that allows us to achieve economies of such scale whilst still giving each landlord (and tenant) a personalised service.

You don't need to have bought your property through YPC for us to make the difference.

Here at YPC Lettings we believe in sharing our knowledge and extending our reach, therefore we will also take on board properties that have not been purchased through YPC, our team will guide you through this very simple process, just 1 step involved: inform YPC and your current agent of the change, and YPC will take care of everything else for you by coordinating with the current agent - provided they have everything that we need then you wont here from us until we send you your rent!

Kirsty Nightingale, Managing Director of YPC Lettings, has spent many hours drawing up and fine tuning YPC's tenancy agreement to ensure that each of your tenants abide by the same rules and regulations no matter where they are in the country.

So give Kirsty and the team a call today on 01522 503 717 and take advantage of our total lettings and management solution for your portfolio.

Live with passion

Brett Alegre-Wood

It's time to tear down the council estates

info@yourpropertyclub.com (Brett Alegre-Wood)

Hey guys,

The London riots bought to center stage the massive social problems that face us after generations of political and economic mismanagement.

Of course the youths are disaffected. Of course the poor feel hopeless. Of course the mob culture took to the streets and rioted.

For ordinary folk it seems so abhorrent that such a thing should happen but it's been coming for some time. For years we tried to hide people away in social housing, give them unemployment benefits and about 100 other different benefits. We've taken away their freedom while creating generations of benefit hungry citizens. Otherwise known as 'dependents'.

The solution - Tear down the council estates...

I contend that private landlords are the answer. Tear down the council estates and have private developers build new developments of fit for purpose eco-friendly housing which will allow for a mixed use of council tenants and private landlords. This scheme works around the country. The more you integrate the poor with the rich, the educated with the uneducated, the more you bring up the standard of living (and role models) for the council tenants.

Are politicians up for the task?

The problem is not the mobs, the youths, or the looters. Sure, they should be dealt with under the law but the real challenge is the prevalent 'band aid' approach to real change.

Social programs such as Big Society will always fail in the end. We need to change the environment in which people live.

Right now we have people living in council estates whose peers also live in social housing. Their only role models are older kids and pop idols. Obviously we can't do much about the pop idols but we can change the environment in which people live.

My question is 'Is the Political willpower large enough to change this?'. Unfortunately the answer is a resounding 'No'. Politicians for years have known the problems associated with council estates. And yet they're happy to spend billions on bombing other countries but the political will to change the home environment just isn't there. It's a band-aid patch for a massive social problem.

The rules need to be changed!

Right now the attitude of the courts is one of 'Rich Landlord, Poor Tenant' and this must change if private landlords are going to be attracted into the building programs we need. Private landlords whose pension funds haven't performed and are unlikely to ever, need a way to self fund their future retirement income, this could easily be satisfied through releasing the council housing to private landlords.

Government deficit and debt solved

The UK government owns, through local authorities, a massive amount of land which council estates sit upon. This land could be leased to developers who could sell it on to private landlords who need a pension replacement, the revenue generated would be enormous and in the meantime it would solve another problem that is a silent killer. The pension time-bomb. I think this is key to the program, do not sell the land holdings, instead lease them to create a cash flow.

Local authorities could be downsized and the support mechanisms around council estates could be filled by private business. Good for the country and good for the debt and deficit.

Is the scheme proven to work?

This scheme has been working for years already, the systems are proven and the integration of council tenants and private citizens already works.

Why this will never work?

I hate to say that this is an idea whose time won't come, the politicians don't have the long term vision to see it through. Their four years in government just isn't long enough for any political figure to see it through so its unlikely to really happen.

The slow degradation and decay of our society cannot be fixed overnight (or one term of office which is what the politicians require) it will take generations and this is the real problem. 'How many politicians from any party are going to embark on such a huge social change program?' The answer unfortunately is none but that doesn't mean we shouldn't give it a go.

Live with passion,

Brett Alegre-Wood