Rohan Weerasinghe

Quick Review from Allsops

I just wanted to show you an extract below from an Allsops report. As we know there are a lot of changes happening in the Market. One of the points I have been making quite strongly whilst speaking at also at the Property Investors Show in Birmingham was to focus on specific regions. This is confirmed from Allsops below.

When analysed on a regional basis, house price inflation statistics are not uniform with the East and West Midlands and Wales most frequently singled out as having the weakest current markets. London, the South East and South West are said to be patchy with some postcode areas which have previously enjoyed rapid price escalation seeing prices fall back. We envisage that performance during 2008 will continue to be fragmented on a regional, town and even sub-postcode level, as micro-markets which have appeared in Quarter 1 2008 continue to be the norm. In general we feel houses will outperform apartments in small developments which will, in turn, generally outperform apartments in high density central town and city schemes, although central London is a separate sub market altogether.

Are you doing your cashflow calculations?

I have had more enquiries about cashflow calculations and last week at the Birmingham Property Investor Show where I was speaking a few people who visited our stand were asking about tools and spreadsheets.

Being an ex-civil engineer I do have have a part of me that loves spreadsheets and number crunching - and so my belief is that if you can crunch the numbers then DO IT. As a minimum, make sure your cashflow spreadsheet includes the following:

1. LTV
2. Interest rate for mortgage
3. Mortgage payments
4. Voids
5. Other costs
6. Seller Finance costs (if used)
7. Rent

Ideally it should be able to back-calculate your interest rate needed to achieve a minimum income and also to back-calculate the amount needed to achieve a certain rent. Also,  it should be able to calculate re-mortgage figures and cost of entry.

I suggest you refer to my previous video article (CLICK HERE) where I show an example of the system we give out clients who are registered onto the Wealth Angels Monthly Essential Property Program. Many have said it is the best and simplest system they have used.

Government Want Mortgage Rates Dropped

Chancellor Alistair Darling this week called for an emergency meeting with mortgage lenders to discuss ways of bringing a halt the increasing challenges faced by home buyers and the increases in interest rates. The meeting will take place next week and the goal is to find a common ground between the government and the mortgage industry. The main concern the government appear to have is that the Mortgage Indsutry is not "passing on" the reductions in interest rates applied through the Monetary Policy Committee.

Last weekend Prime Minister Gordon Brown expressed concern that the current base rate is currently at 5 per cent – yet the average fixed rate mortgage is 6.29 per cent and the average standard variable rate, which borrowers usually revert to when their fixed deal expires, is at 7.18 per cent.

If you are currently looking at a new mortgage - there may be prudence in waiting until the end of this week and into early next week to see if the Mortgage Industry responds by lowering rates.

Roger Hamilton & Rohan Weerasinghe In Conference

Folks here are two absolute MUSTS:

1. Take an hour out to listen to a teleconference between myself and Roger Hamilton. I feel you will find this both inspiring and educational.

CLICK HERE to Listen to Conference call.

2. If you have not already done so - register to attend Rogers Your Life Your Legacy. Having experience Rogers teaching and seminars I can 100% assure you that the event will be life changing from a personal and business perspective.

CLICK HERE

Landlords Response to Current Market

Recently there has been much negative press about the UK property market, but despite current economic conditions, property investors have not been discouraged, in fact, most seem pragmatic about the long term future of their investments.  The majority of landlords do not have major concerns – although the are being more prudent about their approach to the market.

Tenant demand in the private rental sector remains at the highest level for five years, which has led to an increase in rents.  Throughout the country there are rental property shortages. The key thing to focus on through challenging periods is CASHFLOW. Keep your tenancies strong and reduce voids to a minimum.

A recent study from Mortgage Express reveals some interesting statistics - read on.

Monetary Policy Committee Minutes

For those of you interested in reading what was discussed in the last MPC Meeting I have attached a copy of the minutes for you to download and read.

Download mpc_minutes_march_2008.pdf 

I have placed an extract below for those of you who don't have the time to read through it - read on.