Property Magic Podcast

• Understanding HMO Licensing and HMO Planning Requirements

  Simon delves into the crucial distinctions between HMO (House in Multiple Occupation) licensing and planning conditions, emphasising their separate roles in property investment. Simon highlights the importance of creating high-end co-living spaces to attract better tenants and maximise income. He explains the licensing requirements for HMOs, including the number of unrelated occupants and room size regulations, while also addressing safety standards that must be met. Additionally, Simon discusses the complexities of planning permissions, particularly in areas with Article 4 directions, and offers insights on how to navigate these challenges effectively. KEY TAKEAWAYS It's crucial to differentiate between HMO licensing and planning conditions, as they are separate aspects of managing HMO properties. Licensing pertains to the number of unrelated tenants, while planning relates to the classification of the property. Generally, a property needs a license if it houses five or more unrelated individuals, but some councils may require a license for three or more. Always check local council regulations for specific requirements. Minimum room sizes for licensed HMOs vary by council. The national guideline for single rooms is 6.51 square meters, but some councils may require larger sizes. It's essential to verify these requirements to avoid issues when applying for a license. In areas with an Article 4 direction, converting a C3 residential property to a C4 HMO requires planning permission. However, if the concentration of HMOs is below a certain threshold (e.g., 20%), it may still be possible to obtain permission. BEST MOMENTS "If you're going to do HMOs, it's very important to make sure you do high-level, co-living HMOs." "A lot of councils interpret the HMO licensing rules in their own way... some councils take the strict definition of an HMO." "If you have an en suite where the room has its own private shower, toilet and hand basin, the space for the en suite does not count towards the floor space of the room." "In many areas, there is an oversupply of the very average HMOs I talked about earlier on." VALUABLE RESOURCES To learn more about how you can add profitable HMOs to your portfolio, register here to join online training with Simon https://property.isrefer.com/go/3-5PF/Podcast/ To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20). Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/ Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way. How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.

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  14:52
• Busting The Myths About HMOs

  Simon tackles six common myths surrounding Houses of Multiple Occupation (HMOs), a highly profitable property investment strategy, beginning by debunking the misconception that everyone is investing in HMOs, revealing that 82% of rental properties in the UK are single lets. Simon stresses the importance of creating high-end co-living spaces rather than average HMOs to attract discerning tenants and reduce void periods. Other myths addressed include the perceived high workload of managing HMOs, the financial barriers to entry, and the challenges posed by Article 4 planning restrictions. KEY TAKEAWAYS While many believe that everyone is doing HMOs, 82% of rental properties in the UK are single lets. The perception of oversupply often comes from networking environments where HMOs are more commonly discussed. The focus should be on creating high-end co-living HMOs rather than average ones. These properties foster a community atmosphere, leading to lower void periods and the ability to charge higher rents. Although managing an HMO with multiple tenants may seem more work than a single let, the potential profit from an HMO can justify the effort. One HMO can be less time-consuming than managing multiple single lets, especially when considering the option to hire management. There are various strategies to enter the HMO market without needing significant upfront capital. Options include rent-to-rent agreements, purchase lease options, and vendor financing, which can allow investors to leverage other people's money. Concerns about obtaining licenses for HMOs can be alleviated by understanding the requirements. As long as the landlord is deemed fit and proper and the property meets safety standards, obtaining a license is generally straightforward. Additionally, properties in Article 4 areas can still be converted to HMOs with the right planning permissions. BEST MOMENTS "82% of rental properties in the UK are single let properties... I promise you that is definitely not the case." "When you have a high-end co-living HMO, people are really coming into a community... they want to be in this community." "If you compared maybe five single let properties... I would suggest the one HMO actually is a less time input." "You can absolutely pick up properties in an Article 4 area and still use HMOs as long as you follow the rules." "As long as you follow those guidelines... you should be able to get your HMO license, which typically lasts five years." VALUABLE RESOURCES To learn more about how you can add profitable HMOs to your portfolio, register here to join online training with Simon https://property.isrefer.com/go/3-5PF/Podcast/ To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20). Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/ Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way. How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.

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  13:11
• Using Other People's Money For Bigger Deals

  Simon discusses the concept of using other people's money in property investment with successful mastermind graduate Andy Tattersfield. Andy shares his journey from the motor trade to becoming a full-time joiner and eventually venturing into property investment. He recounts how he overcame his initial doubts about attracting investors and successfully completed several deals without using his own funds. The conversation highlights the importance of networking, social media, and building trust with joint venture partners. KEY TAKEAWAYS Learning to leverage other people's money is crucial for property investment, especially when personal funds are limited. Many successful investors have built their portfolios by collaborating with investors who provide the necessary capital. Building a strong network is vital in the property business. Engaging with others in the industry can lead to valuable partnerships and opportunities. Attending property networking events, such as PIN meetings, can help establish these connections. Utilising social media to share progress and projects can attract potential investors. By showcasing what you are doing, you can engage with individuals who may be interested in investing in your ventures. Investing in education, such as attending courses and workshops, can significantly enhance your knowledge and confidence in property investment. Understanding concepts like capital allowances can provide additional financial benefits. BEST MOMENTS "I think it's something that you've said right from the very beginning, you don't know what you don't know. Absolutely. Because now I know more." "I was told or advised to get on social media and tell the people what you're doing, which is what I did." "When people say your network is your net worth, you know, so true." "It's a false economy. And, of course, I listened to everything you said and completely ignored it." VALUABLE RESOURCES To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20). Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/ Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way. How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.

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  23:01
• The Importance Of Relationships In Property

  Simon welcomes Scott Pickin, a seasoned property investor from South Africa, who shares insights from his 20-year journey in the property investment world. The discussion delves into the evolution of investing, highlighting the importance of education, mentorship, and the power of technology in democratising access to investment opportunities. Scott explains his venture, Wealth Migrate, which allows investors to pool resources for equity investments in high-quality assets globally. The conversation also touches on the current market dynamics in England and the U.S., emphasising the significance of diversification and creative thinking in identifying lucrative opportunities. KEY TAKEAWAYS Continuous investment in personal development and education is crucial for success in property investing. Engaging with mentors and participating in mastermind programs can significantly accelerate growth and understanding of the market. Technology has democratised access to property investment, allowing individuals to pool resources and invest in larger assets that were previously only available to wealthy investors. Platforms like Wealth Migrate enable investors to participate in equity deals with smaller amounts of capital. Investors should not limit themselves to local markets or a single asset class. Diversifying across different countries, currencies, and types of properties can mitigate risks and enhance potential returns. Current market conditions, such as nervousness among landlords and changing regulations, can present unique investment opportunities. Those who are educated and proactive can capitalise on these situations while others hesitate. Surrounding oneself with like-minded, ambitious individuals can foster growth and inspire new ideas. Engaging with successful peers can shift perspectives and encourage taking calculated risks, ultimately leading to greater achievements. BEST MOMENTS "What I learned through the crash was that the real money is made in the likes of commercial property and sort of at the next tier. But most people just don't have the money, don't have the time, or don't have the knowledge." "We built a platform to allow people to invest in deals. You're on the debt side, we're on the equity side. They actually own a piece of the asset." "The challenge that they have is they now have the burden of responsibility. You cannot blame the government, blame your background, blame your schooling." "As you said, most investors are sitting back waiting. They're nervous about new government, new legislation, interest rates, and they're sitting back waiting, which means those of you who are educated, some huge opportunities waiting for us and not much competition." VALUABLE RESOURCES To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20). Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/ Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way. How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.

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  29:33
• HMOs and Mindset

  Simon is joined by special guests, Michael and Laura Taylor, who share their inspiring journey from traditional careers in teaching and medicine to successful property investors specialising in HMOs (Houses in Multiple Occupation). They discuss the pivotal moments that led them to explore property investment, including the influence of a transformative book and a three-day Accelerator course. They also reflect on their rapid progress over the past three years, achieving significant financial milestones and developing effective management strategies for their properties. KEY TAKEAWAYS Developing a strong mindset and self-belief is crucial for success in property investment. The journey may have challenges, but maintaining confidence and trusting the process can lead to significant achievements. Utilising management systems and outsourcing can alleviate the burden of managing properties. Michael and Laura have successfully implemented a virtual assistant system to handle tenant communications and maintenance requests, allowing them to focus on other aspects of their lives. There are various strategies in property investment, and it's important to find the right fit. Michael and Laura have chosen HMOs for their cash flow potential and are open to exploring other strategies as they continue to grow their portfolio. Property investment can provide a sustainable income that allows individuals to reduce reliance on traditional employment. This alternative can lead to greater freedom and the ability to pursue work that is genuinely enjoyable rather than necessary for financial survival. BEST MOMENTS "I was sat in my office, staring at the same four walls thinking, can I do this for another 25 years? The short answer was no." "It absolutely sort of blew our minds a little bit as to what was possible in property." "It was a real conscious choice to go, no, we're going to carry on." "One of our properties we've just handed over to a social housing charity... making us £2,000 a month without literally any other costs whatsoever." "There is another option. There are other ways." VALUABLE RESOURCES To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20). Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/ Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way. How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.

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  15:08

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