Rob is here to discuss a potential mortgage liquidity crisis that is brewing in the commercial property sector. Rob explains that the shift towards remote work has left many office spaces empty, decreasing their value and creating challenges for landlords and property owners. This crisis could have significant impacts on mortgage lending, interest rates, and portfolios... KEY TAKEAWAYS A mortgage liquidity crisis is potentially brewing in the commercial property sector, which could have significant impacts on mortgage lending, interest rates, and refinancing options. Blackstone Mortgage Trust, a large private equity giant, is reportedly at risk of a cash crunch, according to the hedge fund Muddy Waters. The shift towards remote work has left many office spaces empty, decreasing the value of commercial properties and making it challenging for landlords to refinance their loans. The commercial property sector is facing a ticking time bomb, with a large number of loans due back in 2024 and the potential for higher interest rates and overhead costs. The mainstream media may not be extensively covering this issue, highlighting the importance of seeking alternative sources of information to stay informed about potential risks in the market. BEST MOMENTS "A mortgage liquidity crisis is brewing... it's very, very dangerous for everyone involved."  "Blackstone Mortgage Trust is at a risk of liquidity crisis... that could have massive impacts on mortgage lending and what rates you get."  "There's a lot of issues in the commercial sector... if people are working from home, then they don't need office or office spaces."  "This is why we record such content like this... it's imperative that we have an understanding of what is going on behind the scenes."  VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Marc Champ of Wharf Financial joins Rob to discuss the current state of the property market. Despite the usual slowdown during the festive season, Marc reveals that he has been unusually busy in recent weeks, attributing this to the decrease in interest rates, which has prompted investors to re-enter the market. They discuss the types of properties that are in demand, such as terrace houses for conversion into HMOs and houses for conversion into flats, and also shares insights into the lending landscape, noting that while rates have dropped, lenders are facing challenges in converting applications into completed deals.  KEY TAKEAWAYS Property market activity has picked up in recent weeks, with investors returning to the market as interest rates have eased off. Lenders are actively seeking deals, but the conversion rate from application in principle to completion may be lower due to stricter stress tests. Rates have come down across the board, and there are new lending products being piloted that have been beneficial for customers. December is a good time for business owners to work harder and plan for the upcoming year, taking advantage of the quieter period when others may be less focused. Inflation appears to be under control, and interest rates may not drop significantly in the next six months. However, there are still opportunities in the property market, particularly for those looking to buy distressed properties. BEST MOMENTS "I think inflation is under control and we're going to have to actually say inflation has been conquered for now."  "There's always opportunity, keep your eyes open, keep looking, keep talking to people" "The more situations you put yourself in, the more opportunities that will arise."  VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Rob looks at the disappointment surrounding the UK government's decision to not include the leasehold ban in its new housing reform law. He stresses the importance of doing thorough research and having a reliable solicitor when purchasing a property, especially when it comes to leasehold houses and the potential issues with service charges and ground rents, and also touches on the political dynamics and speculate about the future of leasehold reforms under a Labour government.  KEY TAKEAWAYS The UK government has decided not to include the leasehold ban in its new housing reform law, which is a disappointment for many people. The government has a history of saying one thing and doing another, so it's not surprising that they have not followed through on their promise. When purchasing a property, it is important to do your own homework and have a good solicitor who can point out any red flags, especially when it comes to leasehold houses and the challenges they may present. The government's decision may be influenced by their own interests, such as owning block management companies or having ties to leasehold companies. BEST MOMENTS "Surprise, surprise, the government have decided to not include the leasehold ban in its new housing reform law."  "Labour saying that the bill's been watered down and doesn't match what was promised by government."  "Mr Gove has branded leaseholds unfair and outdated. He's previously said he wants to scrap them entirely."  "We shouldn't be surprised by this whatsoever. It is what it is. This is the way the system is."  VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Rob discusses two lighthearted yet absurd stories involving councils and their inefficiencies. The first story revolves around a West London council that sent bailiffs to collect unpaid council tax for a property that the council itself owned. This level of incompetence not only wasted taxpayer money but also caused distress to the individual involved. The second story highlights the financial struggles of councils, with Nottingham City Council and Birmingham City Council filing for bankruptcy.  KEY TAKEAWAYS Inefficiency costs taxpayers money and is a serious concern. The council in question failed to check its own records and communicate internally, resulting in unnecessary expenses and distress for the property owner.  Nottingham City Council and Birmingham City Council have filed for bankruptcy, indicating financial mismanagement and potential shortfalls in their finances. This raises concerns about the ability of some councils to effectively manage their constituencies. Councils may resort to increasing taxes to cover their financial shortcomings, which could negatively impact property owners and taxpayers in those areas. BEST MOMENTS "And this is why a lot of councils and whatnot are going bankrupt." "They're looking to treble people's council tax to pay for bus lane improvements, because they've got like a super bus network in that part of the country."  "And there's been a massive misallocation of finance. There's been a massive misallocation of public funds and funds are being put into the hands of people that have no idea how to run it."  "Because chances are the councillors are going to need to raise cash. And of course, landlords, landladies, land people, just people that own housing in general, they're gonna get the short end of the stick as they normally do." VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Rob examines an interesting law change that could potentially double council tax for second homeowners in Bath and North East Somerset, UK. As he explains, it is primarily a means for the council to generate more revenue, and Rob questions whether doubling the council tax will actually incentivise second homeowners to bring their empty properties back onto the market, as the affluent nature of the area may mean that the increased tax is easily affordable for most... KEY TAKEAWAYS The council in Bath and North East Somerset is considering doubling the council tax for second homeowners in an effort to bring long-term empty homes back onto the market. The council believes that there are 858 homes in the area that would be impacted by this tax increase, which could generate an additional £1.84 million per year. However, it is unlikely that doubling the council tax will have a significant impact on second homeowners in Bath and North East Somerset, as the area is relatively affluent and most homeowners can likely afford the increase. If the tax increase does not incentivise second homeowners to sell their properties, they may instead choose to rent them out or use them for short-term rentals like Airbnb, which would not result in any additional council tax revenue. BEST MOMENTS "What the council were trying to do, apart from make cash, which they won't admit, but let's be honest, that's what they're looking to do."  "If the council tax were to be doubled and there's no restrictions in those areas, i.e. let's just say there's not an Article 4 restriction or whatever, these people might then decide to rent out the property."  "The council probably just needs to turn around and say, look, we're a bit short on cash and we're going to do other videos about other councils that have gone bankrupt in a future video and episode."  VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Rob discusses the recent extension of the mortgage guarantee scheme by the government, which allows individuals with a small deposit to apply for a government-backed 95% mortgage guarantee, enabling them to get on the housing ladder. While this may seem like a great opportunity, Rob highlights the potential risks involved, particularly if the value of the property decreases in the future.  KEY TAKEAWAYS The government has extended the mortgage guarantee scheme for 18 months, allowing people with a small deposit to apply for a 95% mortgage guarantee. The scheme enables both first-time buyers and current homeowners to purchase properties up to £600,000 with a 5% deposit. While the extension of the scheme may seem beneficial, there is a potential risk of negative equity if the value of the home decreases during the mortgage term. It is important to consider the economic factors and potential risks before jumping into the scheme, and to have a strategic plan in place. BEST MOMENTS "The government have extended the mortgage guarantee scheme for 18 months and that's very interesting because of the potential economic turmoil that may happen in the next couple of years."  "And that is where you really have to consider where you're buying, what your plan is, what you're doing moving forward."  "The amount of people that have no idea of the economics and what could potentially happen and what is likely to happen is incredibly scary."  "Hence the reason for this episode, just to bring that alertness and to consistently add value and to give you things to think about."  VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Rob discusses the exciting changes in the property industry following the UK autumn budget. The Chancellor announced reforms to streamline the system, including a new permitted development right that allows one house to be converted into two homes without the need for full planning permission. This game-changing development opens up new opportunities for property investors and developers to increase housing supply and potentially make significant profits.  KEY TAKEAWAYS The UK autumn budget introduced reforms to streamline the property conversion process, allowing one house to be converted into two homes through permitted development rights. This change will help tackle backlogs in local planning authorities and boost housing supply. Property investors and developers can now consider converting family homes into two dwellings, potentially increasing the value and rental income. It is important to do thorough research and analysis before undertaking any property conversion project to ensure demand and suitability. BEST MOMENTS "Massive, massive, massive changes coming up in property." "You're now going to be able to just convert one of them through permitted development, rather than go through full planning."  "Now I've got permitted development to do that, then actually, I might be able to certainly increase the value of the home, but I could be able to double my rent here." "And the minute that comes into place, then that is going to make a big difference moving forward." VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Rob welcomes back Adrian Benjamin to discuss property protection strategies. Adrian, with his corporate background and experience in property sourcing, shares valuable insights on how to protect yourself and your property business. They delve into the benefits of setting up a limited company for tax efficiency and how to utilise products like life insurance and executive income protection through the business.  KEY TAKEAWAYS Setting up a limited company for a property business can provide tax efficiency and allow for financial protection through the company. Life insurance can be put through a limited company as a company expense, potentially lowering the corporation tax bill. Shareholder protection is important for joint ventures, as it ensures that the shares of a deceased partner can be bought by the remaining partner, preventing potential issues with decision-making. Key person cover is crucial for businesses that rely heavily on a specific individual, as it provides financial support in the event that the key person is unable to work. BEST MOMENTS "So there's some great products out there where you can still have financial protection but put it through the limited company."  "Your tenants are paying for a policy that will cover the whole portfolio. So it's kind of a no brainer."  "That's what happens with limited company directors. So there's a product called shareholder protection, whereby if that was to happen, you also need a cross option agreement drawn up by a solicitor or legal specialist."  "If that person's off sick or passes away, that's a massive impact on your business because you can't replace them because everything's in their head." VALUABLE RESOURCES Book a call with Adrian Follow Adrian on insta Connect with Adrian on facebook Connect with Adrian on linkedin Subscribe to Adrian on youtube GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Rob discusses the potential impact of rising inflation on the economy, explaining that as pay rises outstrip inflation, people will demand higher compensation to cover the increased cost of living. This, in turn, leads to increased overheads for businesses, which may result in higher prices for consumers... KEY TAKEAWAYS Inflation is expected to increase due to pay rises outstripping inflation in recent years. When pay increases exceed inflation, companies may pass on the increased costs to consumers, resulting in higher prices. The disparity between wage growth and inflation may lead to a vicious circle of price increases and further inflation. The future of interest rates is uncertain and may be influenced by government policy and decisions made by the Federal Reserve. Businesses that are not run efficiently may face challenges as overheads increase and costs are passed on to consumers. BEST MOMENTS "If those costs get passed over to the customer, that is going to be in the terms of higher prices. And then we start getting onto that slippery slope again." "What will happen is that the consumer is likely going to be hit with even more price increases and then the vicious circle starts again."  "What is alarming is from speaking to a couple of friends and other people in various communities is the amount of people that have somehow ended up on variable mortgages by design."  "So although the BBC in this particular case is where the articles come from, although they might be trying to put a positive spin on it, actually, it's probably gonna have a negative consequence moving forward."  VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

Rob delves into the topic of heat pumps and their suitability for British homes,  highlighting the potential disadvantages such as increased bills and the need for proper insulation. Rob also address the issue of noise levels, stating that heat pumps may be too noisy for built-up areas and terraced houses. KEY TAKEAWAYS Heat pumps are considered too noisy for British homes, despite plans to install millions of them. This poses a challenge for homeowners and the implementation of heat pump technology. Heat pumps can lead to increased energy bills, especially if the rest of the home is not properly insulated or if the switch from gas to electric is made. This is an important consideration for individuals looking to install heat pumps. Terraced houses and older style properties may face difficulties in accommodating heat pumps due to limited space and potential noise issues. This raises concerns about the feasibility of heat pump installations in these types of properties. The UK's energy companies and the higher cost of electricity compared to gas contribute to the potential financial burden of using heat pumps. This aspect is often overlooked when promoting heat pump technology. BEST MOMENTS "What you're not being told as a potential customer is that if you go to install a heat pump and you live in an older style property, is the rest of your home insulated properly?"  "There's a new report that's come out that's suggesting now that heat pumps are too noisy for British homes, despite the plan to install millions." VALUABLE RESOURCES GET YOUR DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast ABOUT THE HOST Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s. BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   WHERE TO FIND US https://linktr.ee/thepropertynomadspodcastuk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast