Show notes
We’ve got The Property Hub Summit coming up in Manchester and our quarterly webinar for magazine subscribers.
If you’re a subscriber to The Property Hub Magazine, you’ll gain access to our quarterly webinar - just for subscribers only and should receive an email very soon on how to gain access to the webinar. If you’re not a magazine subscriber - get in quick, you might make it in time to catch the upcoming webinar, but you’ll also have access to the digital back issues and recordings of all previous webinars. Visit http://thepropertyhub.net/magazine/
This week the Rob’s are taking their predictions even further… 20 years in fact!
Predicting what's going to happen next year or even next week is not easy, but predicting what's going to happen in 20 years time even more so! Spotting trends early will give you an idea of where things are going and how you can position yourself ahead of the curve.
Prediction 1: The buy-to-let market will be mainly for professional investors
The days of dipping your toe into buy-to-let with minimal effort or knowledge are pretty much gone e.g. the number of traffic to The Property Hub forum and podcast as dramatically increased, even more so since the changes by the government to tax and legislation - that’s because buy-to-let isn’t easy anymore and people need the knowledge. In 20 years time it's expected the buy-to-let market will look more professional, with fewer amateurs doing it for themselves. There are professional PRS schemes that are built just for pension companies right now and this is a new phenomenon. In many cities the first buildings are just going up e.g. in Belfast, London and Manchester and many more are being built. These blocks will never be sold and are just built for the pension companies, who will let them out to professionals. However it can be predicted that these services will be offered to individual investors as well, who will buy a unit before it’s built and will get long-term rental guarantees. There will still be a place for the independent landlord - only they must be more professional and offer a higher standard of service. This will be a gradual change but as predicted in 20 years time, this will be the landscape of the buy-to-let market.
Prediction 2: Purpose built flats with all services included
This includes your bills, internet, concierge, on site leisure facilities - all bundled in for one payment! No worries, just your rent to pay! This has already started to happen but It’s predicted this will become much more common, for the main factor of convenience.
Prediction 3: Continued demand for smaller, more central units
Again this is something that's already happening as people are prioritising location over space. Younger people specifically would rather live centrally than further out in the suburbs with lots of space. As more people are renting than owning, they tend to have less stuff than before, they’re much more mobile and the need for space and a garage to store stuff becomes less important. This is the trend - more central and smaller units.
Prediction 4: Lettings and estate agents
Would you still go into a travel agents on the high street to book your holiday or would you book it yourself online? This is the case with lettings and estate agents, as it makes sense for people to go online and not visit a premises to be able to buy or rent a property. Most people now choose their properties on Rightmove or Zoopla (although we all love a cheeky peep at the lettings / estate agents window!). Although there is a huge resistance from people in the industry to this change as they believe people will still want to deal face to face. Older generations still may feel like they want to deal face to face, but the younger generations aren't really as fussy as online is more convenient. Rob B predicts that in 20 years times there will be very few lettings / estate agents on the high-street and online agents will take over through adapting and changing with modern consumer needs and requirements.
Prediction 5: Increase in indirect property investment
In 20 years time there will be a lot more indirect investment in property: crowdfunding, funds for residential property, funds for commercial property. There is already a lot of innovation in this sector e.g. crowdfunding wasn’t really around years ago but we are starting to see more of it now (although it’s extremely niche). This is going to be driven by technology and the fact that investors will need to have the knowledge, due to government changes in tax and legislation (prediction 1).
Prediction 6: Mortgages - increased time frame
Mortgages: Are we possibly going to see lifetime or even inter-generational mortgages in the UK? The government will need to find a way of making it possible for people to keep on affording property more expensive relative to their wages. The only way to do that is to increase the time frame - so the question is, will we see mortgages that will outlive us? One to watch!
Wild Card Predictions!
Rob D: Paperless property purchasing, maybe even further with block chain base technology to prove ownership instead of scribbling on a piece of paper and posting it off. The system may become more automated and conveyancing solicitors will be a thing of the past if they don’t radically change what they do.
Rob B: Rightmove and Zoopla could turn into an agent themselves and compete with the likes of Purple Bricks who are growing in strength all the time. At some point if the likes of Purple Bricks gets too big and powerful, they might not need Rightmove or Zoopla and therefore become an agent! This is a wild prediction which Rob B says could (not will!) happen. Watch this space!
Resource of the week
Book: UNSCRIPTED: Life, Liberty, and the Pursuit of Entrepreneurship - MJ DeMarco
Order on Amazon here.
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