Month: August 2020

The covid pandemic has compressed years of behavioural change and tech disruption into months. Whilst I’m no economist I am interested in the knock on effects from one part of the economy to another. As property entrepreneurs and investors we need to be aware of how wider influences can positively and negatively impact our businesses. 

I read a great article in the business times last week with this very title – “The Great Coronavirus Acceleration” – and I thought this topic would open a worthwhile conversation inviting in different thoughts and experiences from property people around the UK. 

Below I’ll summarise what I read on 5 key areas of industry and share a few thoughts on what I see as potential implications to property.

RETAIL

* Supermarket bosses say that consumers have finally started to embrace online grocery shopping after years of reluctance.

* Pre-covid, Tesco had initially planned to double its delivery capacity over about 4 years, their Chief Exec thought it would cost hundreds of millions and take 4 years to do that, but in reality it took them 5 weeks and cost £4m. Just shows what’s possible with necessity and urgency. 

*e commerce platform Shopify (a platform that lets businesses set up online stores) has seen their share price triple and said online store creations in Britain have doubled this year so far.

*M&S chairman Archie Norman said, “Covid has driven a lot of people to shop online who previously wouldn’t have done. Part of that will never revert because people have become habituated to it”.

WHAT DOES THIS MEAN FOR PROPERTY BUSINESS?

* Naturally, the main losers have been retail workers and landlords of retail premises.

* Tens of thousands of retail staff have sadly lost their jobs. This is one among many sectors that have been hard hit. Wider sector awareness will likely lead to residential landlords seriously considering the line of work their tenants are in, especially the tenant buyers for Rent to Buy contracts.

*For commercial property investors, even though many high street retail premises will be coming available and looking cheap, you’ll want to be really clear on all your exits before investing ie do you have a solid tenant to move in? Can you convert the retail space into flats, or a different commercial use that is in demand in the area?

*With the huge growth in online shopping, if we think back up the supply chain, the physical goods we buy that aren’t on a high st/retail park shelf need to be kept instead on a warehouse shelf before being dispatched. Could you find a way to serve that market with a light industrial unit?

What further implications are you seeing/can you foresee due to the changing face of retail?

ENERGY

*Power and fuel demand dramatically decreased due to lockdown (ie no need for offices to operate and a lot less driving) and energy markets have dropped as a result. 

WHAT DOES THIS MEAN FOR PROPERTY BUSINESS?

*With cheaper wholesale energy prices filtering down to benefit households have you looked at seeking out and locking in the best utility prices you can? For HMO landlords and SA operators you definitely want to do that. 

*I just read today that BP are planning to sell their London HQ building for over £300m as it cuts 10,000 jobs and scales back office space in favour of a ‘hybrid work style mixing home and office. 

*BP is among many big UK companies shifting work behaviour and downsizing office space. Savills predict that London office vacancies will be at the highest levels next year since the financial crisis. 

BANKING

*”Banks are under pressure from record low interest rates and expected bad debts which are forcing them to earmark hefty provisions. More branch closures and job losses are expected.”

*More customers are moving to digital banking services and more online shopping means less use of cash > accelerate trend to digital payment and that will in turn increase the need for data security.

*During lockdown much of the lending market did the same with many mortgage products being removed from the market. Now each day is different with lending developments expected every month. 

WHAT DOES THIS MEAN FOR PROPERTY BUSINESS?

*We will likely see more local bank branches come up for sale – Banks often occupy some stunning traditional buildings in town centres, the kind often favoured by the likes of Starbucks and Cafe Nero – however will the demand from these coffee tenants still be there due to lower high st footfall? Could former banks make great conversions to resi?

*In regards lending, that could be a whole post in itself – a couple of anecdotes from my own recent experience includes:

• There have been some super low rates if renewing a BTL mortgage with your existing lender however there are fewer products if looking to release some equity through a further advance.
• I’ve experienced a reduction in products for refinancing my student HMO showing that lenders have less appetite for that market now. 

TRANSPORT

*Airlines have been devastated by the pandemic, [on the other hand electric car maker Tesla has thrived and Elon Musk has become the world’s 4th richest- not directly relevant but I included that for interest :)]

*Will travel companies survive? STA Travel folded recently and was the 11th travel agent to fail since the crisis began. Expert’s say even well established companies now face a fight for survival.

WHAT DOES THIS MEAN FOR PROPERTY BUSINESS?

*Again, residential landlords may be more hesitant about taking on tenants in the travel and airline sector. 

*For SA Operators located near airports and previously benefiting from airline and overseas tourist trade, a pivot to find different guest profiles will be required. 

*On the flip side, with the UK population not able to holiday abroad, holiday accommodation the length and breadth of the UK has been in more demand than ever this Aug and Sep. Will this increased UK staycation demand form part of your property plans?

EDUCATION

*When schools, colleges and universities closed, education providers were forced to move online at pace.

*Learning online is set to become a way of life – a professor at London Business School said, “The resistance wears away when it becomes a necessity and very quickly people realise how well it works.”

WHAT DOES THIS MEAN FOR PROPERTY BUSINESS?

*I felt the pinch with students ending leases at my Edinburgh flats early. Thankfully short term discounted rent attracted them back to rent for this new academic year. Will demand for student accommodation take a big hit in university towns? What are you experiencing in your areas?

*What about your property education? In person training events and courses have quickly pivoted to  online delivery, how do you feel about online learning vs in person? The mastermind programme we deliver at Touchstone is fantastic (IMHO)- it’s great that we can continue to make a positive impact on people investing in themselves from the comfort of their homes.  Property education and online mentoring will grow even more rapidly now I reckon. 

YOUR TURN

I hope that’s been insightful. I’d love to read some thoughts on threats and opportunities for property businesses based on what you’re reading, seeing and hearing.

Image credit: Sunday Times

When you see a headline like this, ‘HOW TO GET GUARANTEED RESULTS IN ANYTHING’  it catches your attention, doesn’t it? This is the title of a Peter Voogd (a very successful young entrepreneur, in the photo) podcast I’ve listened to in the past – it was like a mini workshop talking through a a great exercise you can complete to help stay consistent and to maximise the results in your life and business. 

These are seven simple questions that you really want to have clear answers to and have those answers at the forefront of your mind. 

Anytime you’re feeling stressed or not getting the results you want, you can take time to go back through this workshop and get you back on track.

This is a bit of longer post but well worth working through the 7 questions in the exercise I’m sharing from Peter V below. 

I first shared this mini workshop last year and revisited it this week to complete the exercise again. I encourage you to complete the exercise too, if you’re interested in really achieving the results you want. 

Here are the 7 essential questions to ask yourself:

#1 WHAT’S YOUR BIG FIVE? – ie what are the five things you want to accomplish in the next 30-60 days (the things that if you accomplished these you’d be excited, fulfilled, proud, confident, happy…)

Maybe it’s systemising a part of your SA business, or hiring an assistant, or sourcing a new property deal…

A great quote I noted down from Peter is this, “Remember, nothing works unless you do. And if you don’t work, work through your team. The people who really do the work and move with clarity are the ones that get the results and build the businesses.”

So what are the your top five things you want to accomplish in the next 30-60 days?

Here are some of mine:

-complete the refurbishment of our commercial unit

-secure a property for our tenant buyer client

-secure a large contractor booking for a new construction site

#2 WHAT ARE YOUR TOP FIVE VALUES? 

In other words what are the things you value the most and are you in alignment with those? Are you working with intention, purpose and clarity?

Everyone will have their own unique combination, it may be freedom and flexibility, or money, or family, or….(you fill in the blanks).  If you’re not entirely sure there’s a simple questionnaire you can use on Dr John Demartini’s website to help you determine your values.

My top 3 are becoming the best version of me in each area of life, wealth creation, and creating memorable experiences with my family. 

Once you are aware of your highest values you need to make sure everything you are doing is connected to what’s most important to you. 

Being clear on your values gives you a very powerful filter to assess all the requests and opportunities that come your way, and decide what’s for you or not for you. So when a request pops into your inbox you can be asking yourself – ‘is this going to contribute to my values or contaminate?’

By using your own personal filter like this you’ll feel more empowered to say no to certain things that aren’t connected to your values and therefore live more on purpose. 

#3 WHAT ARE YOUR TOP FIVE PRODUCTIVITY PRACTICES – that you know when you are executing these you’re at the peak of your productivity.

Here are my top 5, in no particular order

-review the week that was and plan the following week on a Sunday by identifying my top 3 proactive actions for the week.

-start my day with my morning routine (which includes exercise, healthy breakfast, a short meditation and reading to learn/develop).

-complete a 90 minute focused morning session progressing one of my top 3 projects with no distractions (ie no email, phones or any notifications).

-practice effective transition between each task (I use a simple little technique I learned from Brendon Burchard).

-set an intention and visualise the completion point of a task before I start working on it.

When you’re at your best what are you thinking? What are you doing? How are you starting your day?

#4 WHAT FIVE NEW BELIEFS NEED TO BE INSTALLED IN YOUR MIND?

Your behaviours are a reflection of your beliefs, so if you’re not where you want to be, what do you need to believe in order to become the next version of you? For example, if you are thinking about venturing out to secure your first R2R property but your beliefs are that getting a R2R is hard and no one will want to do a deal like that with me, then that needs to be replaced with an empowering belief. For example, getting a R2R is easy and there are lots of people who want to do a deal like that with me. 

Maybe it’s about finding great people for your power team or JV partners – so you’d be installing something like ‘I attract great people to my team”.

Think about your limitations, where they may have stemmed from and what new beliefs need to be installed to replace the limiting ones. Whatever we play over and over in our heads becomes a reality so be very conscious about what you’re telling yourself. 

#5 WHAT’S YOUR ONE GAME-CHANGING MOVE?

What’s one big thing that will help you accomplish your other goals?

Is it reaching out to someone you can partner with? Is it working with a mentor? Is it creating a keystone habit that will have a positive ripple effect into other areas of your life?

#6 WHAT ARE YOUR TOP THREE TO FIVE LIFE LESSONS THAT YOU’VE BEEN TAUGHT THE PAST TWELVE MONTHS?

What this is referring to are the perspective shifts, breakthroughs and lessons that life has taught you over the last 12 months?

A stand out one for me which might resonate with some of you is to focus more on how we show up than on how fast we are advancing.

#7 WHAT ARE YOUR TOP FIVE NON NEGOTIABLES?

What are you going to do every week that will be non-negotiable, things you have done before that have proven to give you results?

It could be daily exercise, committing to x amount of business development calls, or connecting with a certain amount and type of person. For me these include the things I mentioned above like the morning routine, the productivity practices, I also block out every Wednesday night for a date night with my wife.

What will your non negotiables be?

Once you have answers to all these questions then wrap the exercise up by completing this sentence, “I know I’m successful when….”

…ie when I’m living life on my terms

…when I’m positively impacting others

…when I’m staying true to my values

…when I bring joy to my family

This mini workshop will only take about 15 minutes to complete but will deliver massive RoT (return on time) in terms of your clarity and action taking towards the right things for you. If you do work through this I’d love to hear just one of your answers to the questions.

If you’re thinking that this week’s post will be about understanding HMRC’s responsibility for collecting taxes from property investors, that would be wrong. We won’t be looking into Income Tax, Corporation Tax, Capital Gains Tax, Dividend Tax or VAT. That is for you and your property accountant to discuss. Rather, this post is about two metaphorical taxes you really MUST understand- one tax you need to pay and one that you really want to avoid paying. Let’s start with the one you need to pay if you want to accomplish your big goals.

#1: ARE YOU PAYING SUCCESS TAX?

Could the hardest, most challenging, most stressful events along your property journey actually be the key to your success? 

If anyone’s read Dean Graziosi’s book Millionaire Success Habits then you’ll know he uses this phrase ‘success tax’ and references it regularly as something we have to pay to get to the next level. 

When I think back to the first year Chris and I had in serviced accommodation it represents a significant landmark for us. Not for any glamorous reasons of early success however. In fact our first SA business was a failure and a painful lesson, but it was those experiences that led us to find a better way and start again with a totally different approach.

Those experiences built the grit, the muscle and the insight to go from that place of a loss making SA business that was built on hope, to where we are now with a successful SA business and a full time manager in place running the day to day operations.

What if everything in your life was designed for you – to test if you have the courage, the grit and the dedication to become the best version of you? And when you do push through, pass the test and emerge out the other side, you get to live the life you envisage for yourself.

Dr John Demartini shared a similar message when Chris and I attended his live event in Glasgow back in 2016 – he explained the reframe to see the challenging events in life through a lens of ‘happening for us and not to us’. In other words the lows, unexpected pitfalls, stressful challenges etc happen for us to respond in the way we choose, and in choosing and acting we grow and become the next version of ourselves. 

What about you, where are you paying success tax thinking it’s the worst thing ever when actually it’s the path designed for you? Wrapping your head around this fact that you can’t get to the next level without first dealing with the challenge/struggle in front of you right now is essential for property entrepreneurs to push through and get from where you are to where you want to be. We can’t one up the universe, we have have to pay SUCCESS TAX along the way. And it’s no surprise that this is true across all areas of life. 

#2: AVOIDING ‘CRAP TAX’

Changing tack now to a little light humour, I wanted to introduce you to the ‘CRAP TAX’. This was a phrase I heard coined by Darren Hardy who I follow daily. What he’s referring to here is the true cost of buying something cheap. I know you will all have heard the phrase ‘buy cheap, buy twice’, yes? Well having to outlay more money to buy the same item shortly after having bought it the first time – that’s the crap tax. 

So in the context of your property journey what might this translate to? Cheap legal advice leading to a costly outcome that could have been avoided? Cheap dining chairs in your SA unit leading to them breaking after just a couple of months? Cheap tradespeople delivering such poor workmanship that it has to be re-done? Or what about the house that looked cheap, but ends up costing you as much as it’s maximum market value once you do everything to put right a multitude of hidden problems with it?

Just as in every business we have to protect our margins by not overspending. Anyone refurbishing a property either for refinance or for sale will feel the pressure to keep costs low. However, it will inevitably need to be a balancing act between managing upfront cost and protecting yourself from the ‘crap’ that could unfold down the line. 

I can recall 2 occasions over years where a lower cost builder has talked a great game but delivered such botched work that the ramifications have been significant. We’re not just talking the actual cost to re-do the poor bits of work, but think about the ripple effect of the unnecessary stress, the huge time drain going back and forth to try and rectify things, not to mention any negative impact on prospective client/customer relationships. These ramifications I’m highlighting demonstrate the true cost of ‘Crap Tax’. 

Crap tax is like a sneaky evil ninja tax that if you’re not careful can creep up after the event it’s connected to and bite you in the proverbial just when you thought everything was going great.

Don’t get me wrong there are times where bargains and the low cost options can work out great. However, those who are in property for the long term, will no doubt conclude that paying for a decent level of quality, even if it feels expensive at the time, will far out way the short term gain of cheap.

So, going into this next week of activity which of these wil be front of mind for you- will you be accepting about paying SUCCESS TAX or will you be strategically avoiding the CRAP TAX?

Has lockdown made you reassess what’s important? Has it made you really think about your health, your routine? Has it helped you realise that whilst there are so many things in life we can’t control, there are some crucial things that we can control. I would consider the way in which we start our day to be one of the key things we can control that will have long lasting benefits, both physically and mentally. 

This post will provide you with 8 building blocks to help you perform at your best everyday. These 8 suggestions are inspired by psychologist Dr Benjamin Hardy, and it was front of mind for me having just read one of his books.

I am a big fan of morning routines – I modelled my mornings from the teachings of Darren Hardy when I transitioned out of employment and into entrepreneurship in 2014. Having an automatic process to start the day and help set the stage for optimising the output and health has been huge for me. I would have been significantly less productive, less focused, more reactive and more frustrated without it. 

For all the property entrepreneurs out there designing the life you want to have, I firmly believe that implementing a morning routine will be a significant contributor to fulfilling that vision and becoming the future self you envisage.

Here’s those 8 suggestions from Dr B. Hardy plus some anecdotal extracts from his research for quick reference:

#1: GET 7-8 HOURS SLEEP 

Here’s what Dr Benjamin Hardy says about sleep, 

“getting a healthy amount of sleep is linked to increased memory, longer life, decreased inflammation, greater attention and focus, and lower stress. And much more–Google it.

The rest of the 7 suggestions are worthless if you don’t make sleep a priority. What does it matter if you wake up at 5 a.m. if you went to bed three hours earlier? You won’t last long.”

#2: MEDITATION OR PRAYER TO FACILITATE CLARITY AND ABUNDANCE

“When you start your day grateful for everything you have been given, you start your day with an abundance mindset.”

When it comes to meditation, I find it easiest to follow a guided meditation, and there are loads to choose from on youtube.

#3: HARD PHYSICAL ACTIVITY

“If you want to be among the healthy, happy, and productive people in the world, get in the habit of regular exercise. Whatever your preference, get your body moving. Exercise has been found to decrease anxiety, stress, and the chance of depression. It is also related to higher success in your career. If you don’t care about your body, every other aspect of your life will suffer.”

When it comes to morning exercise I’m a fan of short HIIT workouts (loads on youtube ie Joe Wicks, or try FitnessBlender for other alternatives) or a jog while listening to a podcast.

#4: EAT 30g OF PROTEIN

“Tim Ferriss, in his book The 4-Hour Body, recommends 30 grams of protein 30 minutes after waking up.

Protein-rich foods like eggs keep you full longer than other foods, because they take longer to leave the stomach. Also, protein keeps blood-sugar levels steady, which prevents spikes in hunger. Eating protein first decreases your white carbohydrate cravings. These are the types of carbs that get you fat. Think bagels, toast, and doughnuts.”

Funnily one of the simple yet meaningful things I wanted to accomplish from leaving employment and not having to commute, was to have the time for a decent workout followed by eggs for breakfast.

#5: HAVE A COLD SHOWER

“Cold-water immersion radically facilitates physical and mental wellness. When practiced regularly, it provides long-lasting changes to your body’s immune, lymphatic, circulatory, and digestive systems that improve the quality of your life.”

When I used to sell books door to door in my university summer holidays we got into the habit of jump starting our days with a cold shower. Whilst I kept it up for those hot Californian summers it didn’t last beyond that. 

However, during lockdown I watched a documentary about cold water therapy and also heard various podcasts about it from the likes of Tony Robbins. So each weekday since April I’ve introduced a cold shower blast at the end of a hot shower and have become quite accustomed to it. Whether all those scientific benefits are happening internally I guess I’ll never know, however the 2 big benefits I can immediately take from it are 1) it really does make you feel invigorated and ready and; 2) mentally it helps to reinforce willpower and the momentum of doing what I say I will. I’ve learned that when we keep little promises to ourselves it builds self confidence because we trust and back ourselves not to negotiate ourselves out of doing what we know we need to. I challenge you to give it a go 🙂

#6: LISTEN TO/READ UPLIFTING OR INFORMATIVE CONTENT

“Ordinary people seek entertainment. Extraordinary people seek education and learning. It is common for the world’s most successful people to read at least one book per week. They are constantly learning.”

#7: REVIEW YOUR LIFE VISION

“Your goals should be written down - short term and long term. Taking just a few minutes to read your life vision puts your day into perspective.

If you read your long-term goals every day, you will think about them every day. If you think about them every day, and spend your days working toward them, they’ll manifest.”

I remember hearing Tony Robbins sharing a truth that will be uncomfortable for some to hear, it was that “the reason why most people don’t have what they want is because they can’t articulate what they want”. Don’t let that be you. 

#8: DO AT LEAST ONE THING TOWARD LONG TERM GOALS

“You need to do the hard stuff first thing in the morning when your willpower is highest. The important stuff. If you don’t, it simply will not get done. By the end of your day, you’ll be exhausted. You’ll be fried. There will be a million reasons to just start tomorrow. And you will start tomorrow – which is never.

If you take just one step toward your big goals every day, you’ll realise those goals weren’t really far away.”

Some will be familiar with Brian Tracey’s wonderful little book called “Eat That Frog” – essentially telling us to do the big thing first. This was a lesson I learned from Darren Hardy back in 2014, that to get a jump on the day do a 60-90 work sprint on something important before checking the phone or email, and this is what I practice.

IN CONCLUSION

You may already have a morning routine or you may be looking for some ideas.

I hope this has inspired you with some ideas but the important takeaway is simply to have a morning routine of some sort. Not something with so many moving parts you give up on day 3 but something you can easily automate by making it a habit. Private victories always precede the public victories 

Whilst there will be many reading this who have read something similar about morning routines, what if today was the day it really struck a chord and you implemented it? What if you intentionally created a new habit thanks to reading this, how could that positively impact you? A morning routine isn’t just a habit, it’s a keystone habit. Charles Duhigg, author of the book “Power of Habit, describes keystone habits as 

 “small changes or habits that people introduce into their routines that unintentionally carry over into other aspects of their lives. Keystone habits create a domino effect that change every area of your life.”

How will your next morning start?