Sample 1 - Blog #rentalSample 1 - Blog #rentalhttps://lololol.zohosites.com/thoughts/tag/rentalSat, 03 Aug 2024 02:13:01 -0700http://zoho.com/sites/<![CDATA[How Do You Identify the Best Places to Buy Rental Property in Any Market? ]]>https://lololol.zohosites.com/thoughts/post/How-Do-You-Identify-the-Best-Places-to-Buy-Rental-Property-in-Any-Market
Want to know a few fundamentals that will help you spot the best real estate markets?  Check out the tips below on what to focus on when searching for a great buy-to-let rental market.

Market Trend and Potential as well as Supply & Demand Factors 

The ideal market is one with high and steady rental growth now and in the long term future. 

If you’re simply searching for markets with the highest rental growth for the past few years, then you’re starting off on the wrong foot . 


​A strong past performance in rental growth doesn’t guarantee a strong future performance
You need to pay attention to the fundamentals that are driving the rental growth. Sometimes the fundamentals are there, but the rental growth hasn’t started yet. Those are the hidden gems that you want to invest in.

Investing in a real estate market solely based on strong historical performance is like blindly buying a growth stock. The investment has been doing well, but it can turn sour very quickly when the demand decreases. Like how people sell their stocks when they think the company is becoming overvalued, residents can get priced out of a market when the city becomes unaffordable. 

Call Now ​+44 (0) 203 2909019

We aim to deliver much needed capital for SME’s and Property Developers.

Factors to Focus on When Searching for a Great Buy-to-Let Rental Market 

  1. Population Growth 

What to look for:  Cities with 1.5 percent minimum year-over-year (YoY) growth for the past two decades and more than 100,000 people. 
 

  1. Household Income Growth 

What to look for:  Household income growing at 1 percent minimum YoY for the past two decades. 

Without substantial household income growth, there won’t be healthy rental growth. If a city has a strong rental income growth but a weak household income growth, then it’s a sign that its residents are getting priced out of the market. The population growth will start slowing down. 

  1. Crime Rate 

What to look for: A crime index that has been decreasing consistently for a decade. 

A decreasing crime index is a sign that the city is improving. Companies also study the crime index to make sure that their office locations are attractive to workers, especially those with families. 


  1. Household Income to Rent Ratio 

What to look for: Minimum current median household income to median rent ratio is 4x or more. 

This is a great metric for measuring affordability in the area. Make sure you use median, not average, because high household incomes can significantly affect the average. 

  1. Employment Growth 

What to look for:  Minimum employment growth of 2 percent YoY for the past two decades. 

Employment growth is a key indicator of the economy. A growing population is not sustainable without good employment growth. However, you should find out what sectors or companies are growing and whether the growth will continue or stop. 


  1. Employment Diversity 

What to look for:  Compare current local employment ratio to national employment ratio. 

You should look for cities with good diversity in terms of employment. This means the city’s local ratio should be within a few percent of the national average across all industries. 

You want employment diversity to mitigate risks associated with certain industries declining. 


  1. Median House Value 

What to look for:  Look for 2.5 percent YoY growth in median house value in the past two decades. 

This is a good indicator of the overall wealth in the city. 

Additionally, if the median house value has been increasing consistently for 20 years, then that means it’s expensive to buy a house, forcing renters to stay renters longer. 

 

In Conclusion – Just like Location, Location, Location, Know Your Market – Research, Research, Research 


Some good property related data sources 

 

GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019  

]]>Wed, 30 Oct 2019 11:48:47 -0800<![CDATA[Will today’s generation rent retire without ever owning a home?]]>https://lololol.zohosites.com/thoughts/post/Will-today-s-generation-rent-retire-without-ever-owning-a-home


It’s impossible to ignore the plight of generation rent. The issue has become so big, with so many affected, that it’s almost a daily occurrence to confront the latest grim facts and figures. Those in their 30s and younger have found the housing market riddled with pitfalls and dead ends, and no one really seems to know what to do about it.

 

With the prospect of home ownership a seemingly unattainable dream for many, let’s take a look at the latest information and see what the real story is.

 


The Figures

 

We all know that house prices have been spiralling upwards for a long time. Whilst this is great for anyone who has already secured their home, it is an obvious barrier to younger first-time buyers.

The Resolution Foundation – which collates and reports on living standards in the UK – recently released a report that outlines some of the biggest issues and challenges for generation rent. 

 

If current trends persist, the report found that a third of generation rent will still be renting when they reach retirement age. And, by that point, it is same to assume the prospect of home ownership will be firmly off the cards. 40 percent of 30-year olds are currently renting privately, which is four times the rate for Generation X. At the same time, housing benefit covers only 55 percent of housing costs and 1.8 million families with children are living in private rented accommodation, up from 600,000 in the early 200’s.

All of this paints a very grey picture for the future housing prospects of generation rent.

 


The Causes

 

Unluckily for generation rent, several factors have come together to keep them from getting a foot on the property ladder.

 

In line with rising house prices, the amount of money required for a deposit has also risen. With wages only now beginning to rise slightly, this issue alone has left many younger people without an insurmountable obstacle to climb. At the same time, social housing has been sold off in vast swathes by cash-strapped councils looking to make ends meet. Gone are the days of cheaper, affordable social housing for many.

 

Whilst the government has attempted to remedy this via ‘Help to Buy’ schemes, this has only pushed demand and prices higher for first time buyers, whilst also creating more shortages. All in all, it’s a confluence of factors that is only making things worse for generation rent. 

We aim to deliver much needed capital to start-ups and SMEs

Call Now +44 (0) 203 2909019

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