This week I recorded a conversation with my friend Mike Cruickshank who has project managed and consulted on multiple house builds designed and built on the Passivhaus principles. 

In this recording you’ll hear about how building homes following the 5 key principles of Passivhaus will reduce heating requirements by 75% or more. We invited questions in from the property community so all of those are answered – your questions like:

How do the build costs compare to a standard build?

How is a passivhaus viewed by lenders?

Are these standards being built into apprenticeship frameworks/standards?

….and many more. 

This conversation was great timing for me as I didn’t know much about Passivhaus standards and now a know a good bit more so I can investigate further how this approach may apply to a new build site that Chris and I have acquired. 

Oh, and look out for the ice box challenge that Mike talks through right near the end – it’s a fun and tangible case study to highlight the impact of Passivhaus principles.

Anyone involved in building projects this year will have experienced the challenges of longer lead time for materials and increased costs. 

Over the last few months you would have seen headlines like the below:

“Construction Materials Shortage Sees Materials Prices Rise 14% in a Year”

“Shortages: A perfect storm of cost burdens”

So where do things stand with it now? And what have you been noticing?

In one of our catch up calls this week I thought it might be helpful to share what Chris is experiencing on the front line as he project manages the creation of 2 flats above our tenanted shop.

The picture attached shows dormer windows being created (thankfully on a clear day 😊) in what will be a large 1 bed flat.

Here are some summary points from Chris:

*Over the past 2 weeks we have seen building materials start to become readily more available and stock levels the merchants have been starting to get back to a more normal level. 

*In the last year timber and insulation has increased by around 40-50%

*In a mid to large sized refurb or conversion project materials will roughly account for about 40-50% of the cost while labour will make up the other portion. So, by virtue of the fact that building materials have increased by 20-60%, it means that even if labour remained the same, we need to budget for around a 25% overall increase for our projects compared to a year ago. 

*Plasterers have increased their rates slightly, at least in the central belt of Scotland – so when we were used to paying £9-10/sqm for plastering we are now being charged £11-12/sqm. That’s about a 20% increase, and we don’t reckon plasterers are making any more margin, rather it’s to account for their materials costs increases.

*Some main contractors are now starting to charge for tenders, however we both think this is actually a good idea and will lead to everyone in the process taking it more seriously and being more professional.

Why Has There Been Shortage of Building Materials?

The construction materials shortage can in part be traced back to increased building and home improvement activity in 2020, particularly during the first lockdown. 

The lockdown led to a slowdown in the production of materials from some factories in the EU, and supply chains have remained stretched ever since.

Combined with this, construction output reached a 24-year high in June, the fastest rise in construction activity since 1997, as reported in June from IHS Markit and the Chartered Institute of Procurement & Supply (CIPS). But demand is not being met by supply, and suppliers’ delivery times have lengthened amid severe shortages of construction products and materials.

Some additional reasons include:

Lack of lorry drivers – All regions report hauliers/HGV/LGV drivers are in short supply and very difficult to recruit, which is contributing to longer delivery times particularly away from major transport routes and urban areas.

Supply of raw materials – This is stemming from a combination of increased global demand, the slowdown and in some instances, factory closures, outside the UK.

Brexit related – The Timber Trade Federation (TTF) said in May that Brexit-related complications have squeezed UK timber stocks, as 80% of the softwood used in building comes from Europe, and 90% of the softwood used for new build homes comes from the continent.

What can you do about it?

Plan as far as you can in advance to ensure you aren’t caught out by shortages or sudden price rises.

When doing your due diligence and analysis in your spreadsheets, be realistic and make sure you are happy with how the property stacks up with a little higher budget on the refurb. 

What observations on the building materials challenges can you share from your current projects?

Are there certain messages you’ve heard from multiple different influential people, repeatedly over the years? There must be something in that right? Otherwise we wouldn’t hear it and read it so frequently. Sometimes it takes hearing a message for the eighth, ninth or even tenth time and for it to be packaged up slightly differently for it to really sink in. More on that in a moment.

This week was Mastermind week – 4 days of working with small groups of property investors at various stages of their journeys, drawing on collective intelligence to help people get from where they are to where they want to be. 

There was one recurring and prominent topic/question that came up this week, and that was to do with ‘HOW’ ie HOW do I get started or HOW do I get to the next level. That might be in the context of getting started from scratch, or it may be in relation to already having some BTL experience but getting started in a whole new strategy.

Since I love masterminds so much, the 4 days of property masterminding has been followed up this weekend with 3 days online for the virtual Mastermind World Summit, delivered by Tony Robbins and Dean Graziosi. 

I have scribbled down so much gold in my notebook from the wisdom of big Tony and the other speakers. In reviewing my notes there was a clear message jumping out at me because of the recurring topic we’d been discussing in the property masterminds about what it takes to get started [and then carry on].

So, what does it take? Well, as I say I’ve heard this kind of message many times over the years but the words from Tony and a few other speakers this weekend have framed things clearly and powerfully so I thought it would be helpful to share them. Afterall, with 105 companies and a revenue of $6bn/year the big man has got a bit of credibility 😁. Tony and the other speakers were talking in the general context of getting started in business and I was filtering it all through the perspective of property, and it’s 100% applicable.

Below I’m going to paraphrase a selection of my notes from Tony Robbins, Dean Graziosi and Lisa Nicholls so you can benefit from the same message, packaged slightly differently, to find the one that resonates with you.

So to remind you, that recurring topic/question that came up was ‘How do I get started property investing.

NOTES FROM TONY ROBBINS

We need to beat what Tony calls the ‘tyranny of how’. He calls starting with how the kiss of death. How doesn’t matter, what matters is WHAT YOU WANT and WHY YOU WANT IT.

If you try to work on how first, you get uncertain. Instead you need to get certainty first in WHAT YOU WANT and WHY you want it, then you can turn your energy and commitment to the learning and being resourceful. In other words, reasons come first and answers come second. 

So in the context of property – if you want to earn £5K per month from property, WHAT is it you really want, and WHY do you want it?

Tony said, ‘the most costly thing for people is to figure out how’, he was referring to how to be perfect. But perfect is the lowest standard because it is impossible. You don’t have to be perfect, you just need to start. 

Let’s say you’ve made the commitment and investment in your property education, now you need to be putting that into action without stressing about being perfect or making any mistakes. There is no one successful in property who hasn’t made a lot of mistakes. So don’t judge yourself too soon, commit to the journey of apprentice to mastery. 

‘When you don’t feel ready, that’s when you’re ready.’

The 3 Forces of creation

#1: FOCUS – the power of absolute clarity and commitment (in other words what you want from property and why)

#2: MASSIVE ACTION – effective execution is the cure all (what Tony was saying here was that if we try something and it doesn’t work, we need to get back up and try it again with a different approach, and keep doing that until we create a result. Too many people stop 5 feet from the goal. 

#3: GRACE – appreciate the gifts in your life, all the things you haven’t had to make that have been give to you because ‘money won’t make you rich, gratitude will’.

What does it take to carry on and be successful long term? MOMENTUM

‘Momentum makes it easier to make success than it is to fail’.

So how do you get momentum I hear you ask – there is nothing like progress to get momentum. Consistent incremental progress that you see, acknowledge and measure. What progress are you measuring in your property activities?

NOTES FROM LISA NICHOLLS [Best-selling Author, Founder and CEO of Motivating the Masses]

Getting started is about conviction over your convenience.

‘We all struggle from impatience but we don’t get fruit by standing over the seed and watching it’.

Sometimes you don’t speak with certainty (when starting out) because you haven’t figured out the how yet. But don’t get confused and caught up in the how when it’s still time to talk about the what.

You’ve got to get sold on the what so the how can show up. Sometimes you get so consumed with the how too early and you get creative constipation, and you don’t create. 

Get sold out on the what then go figure out the how, and that how then becomes non negotiable’.

So in property terms that ‘how’ could be the skills, systems, techniques you can learn from others that you commit to actually implementing consistently because you’re committed to the WHAT with your personal reason WHY. 

NOTES FROM BARI BAUMGARDNER [founder of leading live events business]

‘It starts with enrolling yourself, enrolling yourself in your vision – knowing you are meant for more and taking the steps to become more starts with taking uncomfortable action. That’s when you seek out education and systems modelled by others who have figured out. But there is no magic injection, you have to learn the steps and then take action, have to exercise it like a muscle, everyday, every week. Tony refers to the 3 steps of immersion, repetition and implementation to get mastery in anything.’

IN CLOSING

So there you have the same message packaged up 3 slightly different ways. Does one of those strike a chord with you or give you a lightbulb moment? Which one?

In previous posts over the years I’ve shared the FOUR PILLARS OF PRODUCTIVITY – in essence the four cornerstone ingredients for productivity and goal achieving. These were introduced to me several years ago and I’ve been employing them each week since in my property journey to set and work through mini goals that contribute to the bigger ones.

For anyone looking for a quick reminder, the Four Pillars are:

1. SPECIFICITY
2. MEASUREMENT
3. DEADLINES
4. ACCOUNTABILITY

This week feels like an appropriate time to share a reminder of the Fifth, and counterintuitive, Pillar of Productivity. This crucial and often overlooked contributor to productivity is…..

PLAY

It’s fitting because I’ve just spent a week being fully immersed in a fantastic family holiday and, therefore, disconnected from emails and busyness.  

No matter what our age, we all have an inner child that enjoys PLAY, and it is actually counterproductive to ignore that. As I’ve gradually come to learn from one of my long time mentors, it’s super important that we don’t try to optimise every minute of every day. You’ll know if you fall into this trap of listening to podcasts whenever you move/travel, trying to multitask, and attempting to push for every minute of your day to be optimised for maximum business output and personal growth.

If you can relate to that at all, I get it. I’m the same. We are only trying to become the best version of ourselves. Indeed that’s my highest value.

However, as I mentioned, I’ve gradually learned from Peter that play is important too, and actually a key part of keeping us productive. He showed me that ‘the latest science has actually proven that Playing – like a child – is a revolutionary brain hack that stimulates your neurological growth*. It also unleashes powerful focus and motivation.’

[*Dr Stuart Brown has devoted his career to a meta-analysis of “Play” research in humans and animals, by sociologists, biologists, psychologists and neurologists. He found (among other things) that Play – in both kids and adults – directly correlates with increased brain neuron density and executive function. Play literally makes you smarter.]

So, it’s actually “optimal” to not always be optimised.

I’ve learned that it’s crucial to allow yourself some time regularly for unstructured, non-improving, joyful activity. The kind of thing that’s innately interesting, where you lose track of time AND lose your sense of self. The kind of thing that your seven year old self would’ve loved to do.

So what’s the benefit of all this and why is making time for play so important for productivity?

• Disconnected time away from the business actually makes you hungry to get back into producing mode and working at being the highest leverage version of yourself in moving your business forward. I can honestly say I’m hungry to get back to business next week.
• Having let the proverbial ‘inner child’ out to play I can happily put the head down and focus on the hard work for another 90 day sprint without feeling frustrated or the higher risk of procrastination had I not taken time out.
• Changing up my environment and routine for a week has removed me from the day to day blinkers and made way for some creative thinking thanks to inspiring sights and new conversations- for example it reconnects me to a big goal Chris and I have to build a spectacular properties where we can host mastermind retreats and gift holidays to causes that are close to our hearts – ie families dealing with cancer can come away to create wonderful memories.
• I’ve continued to feed the virtuous cycle – ie when we spend money on experiences with loved ones it not only creates wonderful memories but it inspires us at a different level to continue to produce results and create a life we are proud of for our family.

I am returning home excited and energised about beginning a new week of incremental progress with our SA and development businesses. This week ahead is a particularly exciting one as Chris and I have 4 days of masterminding with awesome property people.

In closing, I’d encourage you all to be intentional about scheduling time for PLAY, even better, let us know what you’re planning to do.

ARE YOU A WORK MARTYR? Do you feel like you can’t afford to take time away from your property business otherwise you’ll fall behind and have loads to catch up on?

Or maybe it’s the opposite – are you taking loads of time off and have lost momentum with your property activity?

The summer is a wonderful yet challenging time for many in property, and in any business for that matter. It’s a challenge because we don’t want to lose all the great momentum built up over the first half of the year, nor do we want to miss out on the fun to be had when the sun comes out.

SInce we are right in the middle of the school summer holidays, for many, I thought it would be helpful to share some psychology and tactics that can help beat these challenges I mentioned. These are things that I’ve learned through mentors and have been consciously practising for several years. I don’t always get it spot on but these things have certainly helped provide me with a healthy reframe for holiday time and helped me keep momentum going over the summer period. 

To start with here are a couple of psychological reframes for summer:

#1: GO ON HOLIDAY 

Yes it sounds obvious, it’s summer time after all, but you’d be amazed at how many people don’t actually take holiday ie statistics for unused holiday days in the employed world are shocking. Not wanting to take time off or thinking we can’t afford to take time off is unhealthy. Just like top athletes incorporate rest and recovery as part of their elite training regime, we need rest and recovery in our property businesses to perform at our best.

Lets say you are project managing a conversion project, or running a busy SA business – if you keep pushing everyday in the business you are at risk of burning out or at the very least resenting what you are doing because you’re missing out. We need to learn to let our inner child out to play by taking time off, then when we get back to work that inner child stays quiet for another chunk of time so you can focus and be your most productive self.

#2: HOLIDAY PERSPECTIVE

Don’t associate holidays with ‘lost time’. This is crucial, and it’s a mental battle I wrestled with for some time. You don’t want to have self talk when you return from holiday of ‘I need to get caught up, I’m so far behind’. That kind of thinking will only train the brain to think that, ‘any time I go away I have the pain of having to catch up’. Instead we have to tell ourselves that time out is part of our high performance and on return it just needs to be a standard week, and unread emails will be worked through gradually. 

SOME SIMPLE SUMMER TACTICS

#1: PLAN YOUR PLAY – get your holidays as well as the local trips and meals out planned and in the diary.

Every summer Darren Hardy shares some great video messages on this same topic and he often shares this anecdote from the late Jim Rohn who used to feel that when he was in the office and it was sunny he felt guilty that he wasn’t at the beach with his family. And when he was at the beach he felt guilty that he wasn’t in the office. He therefore felt he wasn’t being any good at the beach or at the office. Here’s the lesson from Jim,  

“When you are at the office, be at the office and don’t be thinking about the beach. Then when you are at the beach, be fully at the beach.” – Jim Rohn

And we can’t do that unless we have already scheduled the time off. With the fun activities scheduled it releases us from thinking about them at work and we can be fully focused.

#2: STAY CONNECTED WITH YOUR WHY AND YOUR TOP 1-3 GOALS FOR THE QUARTER

I’ve found this really helps keep me focused ie on the books I choose to read and to stop me going down rabbit holes in terms of exploring property ideas that aren’t related to those top 1-3 goals.

#3: WRITE OUT YOUR PICK UP POINTS

What I’m referring to here is to write out exactly where you want to pick up a piece of work when you get back from a holiday. So for example if you’ve had your head deep in some due diligence and deal analysis then write yourself a little note that will make it quick and easy to pick up where you left off.

#4: DISCONNECT AND BE PRESENT

I said this in point #1 with Jim Rohn’s quote but saying it again now because your kids will thank you for it. As part of being disconnected fully present whilst you are away, set things up before you go by managing people’s expectations, ie let people know you will not be responding to things, set your out of office on, voicemail on etc.

#5: WRITE DOWN IDEAS THAT POP INTO YOUR HEAD

Write down big picture ideas so you can get back to being on holiday. Holiday ideas are often like ‘shower ideas’, in other words ideas can pop into your head when you are relaxed that could be a new or more creative angles to approach things in your business. Be sure to write those down so you know what to do about it when you’re back at your desk. You want to get those ideas out of your head so you can get back to being present with your family and the holiday. 

#6: DON’T FORGET THE POST HOLIDAY REFRAME

When you get back to work remind yourself that its not about making up for lost time, focus on having a standard week and that gradually working through emails etc will be part of that. 

Here’s to your summer. Which of these summer tactics and reframes resonates most with you?

[Image credit: Dreamstime.com]