Matthew Cullum Official Blog
This is the official property blog by Matthew Cullum, featuring a wealth of information regarding property development and property portfolio building. This website will provide concise market information and property industry news plus analysis available for property professionals. Matthew Cullum blog will always seek to update clients on all the relevant property news from around the world.
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It will always be more financially beneficial to developers and indeed private investors to seek out regular and in house construction workers to carry out the necessary renovation work, usually they will have a contract with these contractors whereby a deal is struck and they can complete multiple projects whenever there developers need them. This makes it far more cost effective for the developer as in effect they get a reduced rate due to the amount of bulk and continuous work being given to them.
The property market is always evolving, real estate is generally a popular path to take as an investment option. If you buy a property it most likely will generate an ongoing income for you in the long run. But you must always be cautious that there are no underlying problems with the property before you purchase otherwise you will lose money, so make sure you assess and demand a full check beforehand.
If you were to be hired from a third party to manage a residential/commercial or industrial real estate, you are acting on behalf of the property owner to preserve then value and generate an income thus being another way to make money through property management. Matthew Cullum’s blog seeks to provide concise reports and information on all the details regarding property management.
There are always ways of making money in this industry. If you have potential buyers and connections such as agencies you will be entitled to a commission. In laymen’s terms it is who you know and not what you know. If you are about to embark on this career path, it is crucial that you have an understanding of the different clientele you may come across.
You need to be prepared for the social aspect as well having an entrepreneurial flare. You may have to deal with different needs and expectations – landlords, tenants, agencies and various other establishments. If you are a focused and motivated individual then any problems that may occur will have as strategy. The property blog can provide full information relating to landlord property issues.
Liaising with clients and contractors on a regular basis will ensure you keep a professional and personal bond by expressing that you care and genuinely hold their best interests at heart. Business is usually kept ticking over through word of mouth, another way of advertising – through contacts and getting to know different people in the same industry.
The flip side of residential based property is naturally commercial based. If a property developer is looking for a more long-term stream of income they might venture into the commercial side of construction. By this I mean, if a large plot of land became available within commuting distance of an urban community this may prove to be an ideal location for potential office blocks.
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How this differs from residential private tenants is that you have an active successful well vetted business committing to the monthly repayments if the occupied units or building/unit is rented out. Matthew Cullum blog produces monthly market rental reports for property professionals.
To expand on this, the risk a landlord would take with a private tenant as opposed to a commercial tenant is that a private tenant is beholden to circumstances out of his own control. When compared to a commercial tenant running his own business you are less vulnerable as a landlord because you can actively witness the business first-hand therefore you are able to make a clearer judgement on the foreseeable future.
Below are a few useful videos for property developers.
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The recent Covid-19 pandemic has also had a monstrous impact on not only the property sector, but throughout all sectors alike.
The virus forced thousands of businesses up and down the country to down tools, and stay at home, which obviously contributed to a huge slump in each and every market. There appears to now be a light at the end of the tunnel, with all businesses big and small slowly starting to resume usual business hours. This is great news for property developers and investors, one might argue that there has never been a better time to enter into the market and strike while the irons hot. House prices have hit a low point, making it a prime opportunity for developers and investors to purchase properties for a substantially lower price. On a much larger scale, if one were to purchase multiple properties at a fraction of the usual buying cost, this could provide and result in a huge potential profit if approached correctly.
Since the huge financial cash injection from overseas investors after the Brexit debacle has settled, many have predicted record numbers of property developments within the UK, particularly in the North, where there is a significant lack of social housing. This is why when a developer or an investor is looking to either purchase a plot of land or indeed a property which needs renovation etc, the location is absolutely paramount. One thing that both developers and investors realize is that the closer a property is to London, the higher the price it will be, this is why they are also on the lookout for sizable plots of land or dilapidated properties in and around that area. If a plot of land or multiple properties can be purchase on the outskirts or indeed inside London at a fraction of the price, this could result in substantial profit margins providing the dwellings are bought up to a high standard. Matthew Cullum can provide top resources and full market commentary on all property issues.
Developers or private owners that know anything about the property industry, realise and agree that London and surrounding areas are the most sought-after locations of properties throughout the whole of the UK. As I previously mentioned, with the correct team each with a designated role to play within the project, with the workload shared the strategy can pay dividends ultimately.
If you have one member of the team as the acquisition manager, who can always be ready to source the most economical properties in the prime locations, as primed location properties do not stay available for very long, this is why having this particular avenue covered constantly.
Matt Cullum blog asserts that you will also always find that an experienced developer will have a finance manager, who works out the potential budget and costings for each and every project. If not approached correctly, you could see a disaster with staffing costs, materials and supplies, not to mention going over the agreed time to complete the project. This can also result in more staffing costs for the builders and again, more material costs. These are just a few of the many obstacles that need to be thought through and planned before ever beginning a project of this scale.
It is always important to gleam as much information from experienced developers or indeed private investors who inevitably will have made many mistakes along their way. The lessons one can learn from others mistakes can be absolutely invaluable, if applied to your own strategy. To summaries, with Brexit looking like a distant memory, the dust having settled and record numbers of overseas investment pouring into the UK, now is a better time than ever to start your journey into the property market. In addition, the world seems to be through the worst of the Covid-19 outbreak pandemic, which halted business in virtually every single country on Earth, it appears now that the UK is in good stead to have a record breaking bounce back both financially and in terms of morale. Contact Matthew Cullum blog for more information relating to any of the issues addressed above.
Matt Cullum Mortgages Explained
Getting a mortgage is a big step for any young person, it a huge commitment to take on as one is committing themselves to a consistent monthly repayment back to the bank, with failure to do so could result in the loss of their home.
Matthew Cullum blog writes that a in simple terms, a mortgage is effectively a loan taken out on either land or a property. Most mortgages run for on average 25 years, however the duration can be longer or shorter, which means getting a mortgage is a huge lifelong commitment. When a bank is able to offer a mortgage to a client, the bank will obviously require security over their loan, this usually comes in the form of a first legal charge over the asset the lender is purchasing. This means that, should the lender not keep up or maintain their monthly mortgage repayments, and were to default, the bank would effectively seize control of the asset, have it sold, and they would reclaim their loan amount through the sale of the asset.
Matthew Cullum’s blog always advises to work out an affordability check before rushing into applying for a mortgage, one of the biggest reasons for defaults on lenders payments is the inability to consistently repay the monthly payments. This can be due to a lack of planning in terms of being able to not only pay their mortgage, but to ensure they have enough money remaining to support themselves or their families with everything else that needs paying.
One of the necessities of applying for a mortgage is ensuring one has a sizable deposit to put down, with this one will almost always be declined for a mortgage. This is why it is extremely important to work towards a deposit initially and looking at properties within your means. Matt Cullum blog also states that many people get solely focused on the property itself, ands forget to factor in the day to day domestic bills that comes with owning and maintaining your own property. This include household bills, council tax, insurance and general, maintenance of the house itself. Lenders will always want to see proof of income and certain expenditure and to also check whether the borrower has any debts. This is to ascertain whether or not they will be able to keep up with the monthly mortgage repayments.
Matt Cullum’s blog summarises by saying it is always wise to seek advice from external sources such as a financial planner or advisor, they will always be able to help you work out a realistic plan and ensure you stay within your means before making the life changing decision.
Many successful commercial investors buy, hold and rent out properties for the long term ensuring they have enough cashflow for maintenance and other expenses. The savviest investors allocate their budgets so there is sufficient coverage for expenses like the mortgage, taxes, insurance and advertising costs. Matthew Cullum’s blog encourages all potential commercial property investors to ensure each of the above elements are fully factored in to the project, without doing so the costings can run away from you and you’ll be left with your outgoings and costings outweighing your potential monthly returns from tenants.
When one runs out of cashflow, the property becomes a liability as oppose to an asset, which is the complete opposite of what the owner set it out to be.
That being said, no matter what part of the country one decides to complete a project or purchase a commercial property, there should always be sufficient interest from surrounding locals to be able to occupy your property. This applies to office blocks, warehousing and shop floors. It is equally important that any potential tenant is fully vetted and their business is adequately assessed before committing to rental, this will provide the landlord piece of mind and also allow them to plan ahead safe in the knowledge that their occupants will be able to fulfil each and every monthly payment moving forward.
Matthew Cullum’s blog encourages developers and investors alike to peruse their potential projects but reminds them to bear in mind all of the accompany elements which are inclusive within this commitment. Do not oversimplify the task you are taking on, factor in every single potential cost they may be included. If one follows these guidelines mentioned above, then it follows that whatever the development or project one intends to focus on, it should be a successful and yield a very good return for the owner.
One final piece of advice is that, if an investor is entering into the commercial property sector, we would advise that perhaps start on a much smaller scale and work your way towards larger and larger developments once confidence has grown and you have each and every element taken in to account to minimize mistakes and maximize returns.
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The economy is the biggest and most fundamental system in any government, without it, society wouldn’t be able to advance or progress. Infrastructure, transport, retail and goods services, these are just some of the most important sectors we all have come to rely on within our society. Every business big or small within society all contribute to the working order of the economy, money paid through services being transferred between consumer and business all get pumped back into the economy through the taxing system. Through our collective taxes, the government is then in charge of using that capital to spend in areas within society that make our lives easier. Healthcare is one of the major elements consistently relied upon, without our taxes, our universal healthcare system which people rely upon on a daily basis, would crumble. Small business in a society are the backbone of any economy, through consistent daily trade, the economy remains a well-oiled machine. Technology now plays a huge part when it comes to the day to day running of any business, whether it be a tradesman or an office worker, we as a society have become totally dependent on technology, it makes our lives easier and simpler in everyday life. Without a well-functioning economy, the quality of life that so many of us have come to expect would be heavily effected, leading to a much lower standard of living. The school system in our society ensures that each and every child and young adult are educated to a high standard, in order to give them the best chance of acquiring the best job possible. We are always conditioned and prepared to work, thus funding the economy. Matthew Cullum states that recent impact of Covid-19 has had a huge impact on the current state of the economy in the UK, the chancellor has recently announced that the UK is entering its worst recession ever recorded in the UK. However, there is hope, the property market has seen a surge, a surge that was unexpected and wrongly predicted by experts, which has given investors and developers a massive boost of confidence. Matt Cullum expands on this by mentioning the recent injection of funds coming from overseas investors, to the tune of billions of pounds, This has single handedly driven the property sector further forward than first predicted. At this present time, there are a lot of concerned people within the UK who are worried due to the uncertain climate surrounding jobs and employment.
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Since the COVID-19 pandemic the property market has undergone many key changes and fluctuations which should be certainly considered by today’s property buyers and investors. The effects of this global economic meltdown cannot be overstated and there are many significant details should be looked into before embarking on any purchase of a property or development. The economic effect internationally particular in the UK that’s been severe and the lack of employment as well as travel will certainly have a negative effect on the property market even though there has been an initial jump in activity following the stamp duty holiday that was announced.
The stamp duty holiday has provided new buyers and investors a much-needed lifeline and incentive to purchase new properties due to the savings that can be attained from stamp duty. If it’s a buy to let or a residential property there are tens of thousands or hundreds of thousands of pounds to be saved through the holiday and the limit of £500,000 grant out slippering many buyers savings. However the holiday will not be permanent and one would expect there would be a drop-off in the market once this is finished with and potentially we could see another recession occurring as jobs become scarce and wages full. It is really the issue of jobs and wages that will bring the property market down as I was simply won’t be enough buyers with funds for property at these current prices.
However when the market falls this brings potentially the best opportunities both in a buy to let and development sense and we would expect there to be a potentially shop £3 compare to the last recession during the credit crunch. This sharp shock to the market which admittedly is dragging on throughout the year could not be as worse as the recession during the credit crunch which was ultimately very prolonged and due to systemic issues in the marketplace. This new pandemic will undoubtedly hit the market hard however we would expect there to be significant opportunities on the way out and there is always light at the end of the tunnel. Please register to the Matthew Cullum Property blog for more information and ongoing news and commentary concerning the COVID-19 pandemic and this affects on the property market.
MATT CULLUM PROPERTY PORTFOLIO BUILDING BLOG
One of the key areas for property developers is the decision to use contractors or subcontractors or to develop a property yourself. If it comes to refurbishments it is always advisable to try to do as much of the work yourself to save costs as there is a small margin at the end. However you will need experience and it’s not something that can be done from simply looking at YouTube videos as you may do with your own house refurbishment. Depending on the size of your business in the size of the development will be a key consideration if you are you looking to use a contractor or subcontractor. Typically using a contractor will provide many benefits and hands off Experience for you however the cost overruns can be an issue and you should always enter into a contract through previous to the development to make sure that all of the end costs are agreed at the outset. There are many horror stories of contracts is going drastically over budget and overcharging to make a scheme potentially not viable.
It’s also extremely important to research the contractor and their previous track record as well as any reviews and testimonials they may have. There is usually some nasty surprises when it comes to local contractors and you may not be able to find the correct information prior to a build to just help you decide. It’s really a case of weighing up the costs versus their experience similar reliability and many developers fall into the trap of trying to get a cheap build and therefore compromising on the proficiency of the contractor. There are many large contractors which have vast experience in the building industry and sometimes it’s worthwhile to give up some of the profit to make sure the builders done professionally and there are no nasty surprises during the build process.
Another way to balance the cost versus quality of the build is to use a project manager who will then employed subcontractors for the various trades. It’s important to employ a good proficient project manager who can lead to build effectively and has suitable experience managing bills and managing subcontractors. Depending on the size of the building may be worth also employing a quantity surveyor to ensure the costings of the various trades and materials are in line with the market rates. This is usually where does nasty surprises coming when factoring in the prices of tradesmen materials and an unscrupulous contract our project manager could potentially take advantage of these to make a profit for themselves. The Matt Cullum property blog will always help to provide information on the such pitfalls and will provide market commentary to explain where there could be issues arising in builds in 2020.
Whether you use a contract her project manager or subcontractor you should always work out the figures meticulously at the beginning to make sure the scheme is viable and has enough contingency to cater for any issues that arise during the build. Always make use of your accountant in the costings of a development to make sure that there are cost overrun considerations as well as tax considerations. Tax on developments are fairly light touch and it’s still a key consideration to cater for these amounts and to make sure the development is run tax efficiently. You will usually be using a limited company for property development to keep everything separate and also to run it as tax efficiently as possible Matt Cullum blog will provide more articles on the tax side of things regarding development and also on a legal firm basis.
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MATTHEW CULLUM MARKET OPINION
The market is constantly changing in property be at by buy-to-let, property development, commercial property and retail property. The COVID-19 pandemic has been a major factor in the changing of the industry and the issues that it’s faced with many properties falling in price and having a tough time shall we say in the marketing process. However due to the Sam duty holiday and other government schemes including the help to buy scheme there are certainly positives in the market at the moment there seems to be a lot of activity of state agent selling properties at quite a rate. Particularly in the south-east we’ve seen many properties go on the market and get sold at a very favorable prices even post Covid prices which have increased in value. Typically you would expect the market to drop however we’ve seen certainly an increase in particularly high value homes which tend to be recession proof and have always favored well in times of economic crisis.
We expect quite a bounce back in the market even though there may be a bit of a drop in the next year or two following the Covid situation. We would expect a sharp rebound if of course the situation is resolved and people are fully out of lockdown with hopefully a vaccine on the horizon. It’s always a good time to consider selling a property when you’re at the height of the market and considering there may be slight drop in prices could be considered a good option to look at selling now waiting a year or so and re-entering the market at a lower price point.
When it comes to commercial property this is certainly going to be a very big shift in the market and we expect prices to really drop following over 19. We would say that the market for offices and also shops in retail will become a much less competitive market and therefore there will be bargains to be had however there will be certainly issues in this area and it could be a risky decision to enter it now or in the next couple of years. It may be a better idea to see how the market reacts and how they are retail industry bounces back following this. We’ve seen obviously a trend in online shopping and people working from home this one down slowly reduce the demand for offices and retail units.
Across the country be at the south-east the north or London there has been a decimation in the market of commercial real estate, this would likely continue for the next couple of years and we would recommend recommend to keep an eye on the market and the news surrounding it before making any financial or property related decision we always recommend to speak to market experts as well as solicitors and accountants before embarking on any property purchase of any size. The Matthew Cullum blog will seek to provide as much help and council as possible with regular market and updates and news stories in the area of property.
We would expect a sharp drop as we discussed but hopefully even sharper around however in today’s uncertain times with the pandemic it can be shortsighted to base a decision financial and property wise on this assumption. It may be a better idea to wait to see how things to react when we are eventually free of COVID-19 and out of lockdown and then as hopefully the market returns to normal you can start to make the decisions related to property purchase and building again of portfolios. But also the government and taxation issues should be closely watched as this can change sharply and could be to the detriment of property professionals.
MATTHEW CULLUM BUY-TO-LET PROPERTY
The buy to let market has certainly gone through some major changes in the last few years and we are going to be taking a look at Weather 2020 will be a good year for buy to let or not.
Buy to let is the term given to Property which will be rented out rather than lived in or developed. If you’re buying the property with cash you will not need a buy to let mortgage however if you do have a mortgage there will be many tax implications involved and potential high interest. Interest rates can be anywhere from two up to 6 or even 7% and we would advise to go through a specialist buy to let mortgage broker. Interest rates can be crippling for a buy to let investor and with the new tax rules that have been increased over the last three years you could be looking at a potential loss whereas prior to these new rules it could’ve been a profit.
The main road that has come into place is the role relating to the offsetting of mortgage interest. You are now taxed on turnover rather than profit and this can potentially make a buy to let investment unfeasible as you could be paying more tax than profit. You cannot now offset your mortgage interest which is a major factor however if you are purchasing the buy to let property cash or buying for a company then this will not apply. This therefore takes the smaller buy to let investors which require mortgages out of the market and benefits only the rich investors have large cash reserves.
With increasing house prices parts of the UK remain too expensive to be able to purchase buy to let property and recent analysis suggests the UK could become a nation predominantly of renters by the year 2050. 55% of the UK live in the rental sector and this demand will only increase rents. If we consider more data from the office of national statistics and the private rental prices in the UK have risen 1% plus every year and the market is looking buoyant. However this disadvantages renters and pushes potential first time buyers out of the market has properties are snapped up by bicycle investors.
The buy to let market is definitely tightened up over the last few years with the new regulations and changes to the tax system. Another key role is the capital gains tax rule which will factor into buy to let profits considerably. Discount however be considered a cost which can be deducted from any profits made on your buy to let investment. Home is now also need to be energy-efficient and the new regulates that are coming into place will require all homes to have a minimum EPC rating of E which can have costs kept on a property at 3 1/2 thousand pounds.
The location is a very key factor in buy to let investment and we would suggest at the Matt Cullum property blog to research your area closely. Many areas in the south including London I’ve become an viable in terms of returns for buy to let as property prices are too high. Many investors have gone to Northern counties particularly hole and even in Glasgow in Scotland to achieve the rental yields and buy property at a very cheap price. Properties within the £40-£80,000 mark usually yield a good rental return however you will have to have a management company in place if you do not live there which can increase costs. Also the type of area and quality of the property could attract the wrong type of tenant or cause you issues in non-paying tenants which will further reduce your profit and cause long-term issues.
At the Matthew Cullum property blog we would advise to research all areas of buy to let thoroughly from location to costs of property purchases as well as legal and estate agent factors. There are many areas that can increase costs and run out of control and we would encourage you to do a lot of research on all these areas prior to purchasing a buy to let property. Research is key and just because Property seems to present a good yield doesn’t mean that will reflect in your end profit and income returns.
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MATTHEW CULLUM PROPERTY EXPLORE GREEN ECO-PROPERTY
In case you are thinking green homes are the latest fad in the property development industry and will go away soon, you better think again. Green homes are here to stay. Given the recent government announcement to extend the green homes grant scheme for another year, the property market will continue to experience an upward trend in eco-friendly homes. So, before we dive into the green homes grant scheme, Matthew Cullum property will dig a bit into green homes.
Matthew Cullum property explores what is a green home?
Green homes are homes built to be environmentally sustainable. Eco-friendly homes are built using recycled or environmentally friendly materials and appliances. The model aims to efficiently use energy, ensuring we preserve the planet while maintaining warmer homes throughout the year. Homeowners and developers can build eco-friendly homes from scratch or incorporate green technology in their existing homes.
Why is the adoption of green homes important?
Statistics show that the construction industry, in general, contributes up to 40% of carbon emissions. Thus, in a bid to minimize environmental degradation and save the planet, eco-friendly homes are proving to be a viable option. Matthew Cullum property explores several reasons why green homes are the new trend.
- Instead of shipping construction materials, construction companies can use locally available resources or take advantage of recycled materials, reducing the fuel cost involved in shipping. In the long run, this promotes the local market, and both the developers and construction companies get to save money. The families that live in these homes also end up spending less on utility bills.
- Green home construction help reduce carbon emission. This is tied to reduced transport pollution because of sourcing for materials locally and using eco-friendly construction materials.
- Green homes also contribute to overall human health, as the construction materials used are harmless.
What are the features of a green home?
A green home has several features that all work together to ensure sustainability. For new buildings, it helps to have an eco-friendly construction design from the onset. Here developers can choose environmentally friendly materials and appliances. The several features that homeowners, landlords, and property developers can incorporate include:
Home Insulation: A good insulation reduces energy consumption, which translates to a comfortable home environment throughout the different seasons of the year. Good insulation maintains an optimum temperature at all times.
Energy-efficient lighting: energy-saving light bulbs use less energy than the traditional bulbs. Also, constructors can design homes to leverage natural light by placing windows strategically.
Energy Production: Homeowners can use alternative energy sources like solar power to generate electricity, heat water, and support other household functions that use electricity.
Energy-saving appliances: Installing low power consumption fridges, washing machines that use less water, or low-flow water fixtures are part of eco-friendly homes.
Environmental friendly materials: Using ecological friendly materials is not only good for the planet but also enhances the safety of the workers and the homeowners. Environmentally friendly materials like paper-based countertops, cool roofs that reflect light, composite decking, and other construction materials made from recycled materials are all options you can explore.
Programmable thermostat: This high tech smart home essential can be programmed to regulate temperature based on specific factors.
The list of smart features to incorporate in eco-friendly homes are many. It will all depend on the finances, home design, and preferences of the homeowner. Matthew Cullum property explores these broad features.
The green home grant scheme
The prime minister recently announced the extension of the green home grant scheme from 31 March 2021 to 31 March 2022. Homeowners and landlords can apply for a voucher for up to £10,000.
Most landlords and homeowners in England will be eligible for a maximum of £5,000. The grant will cover two-thirds of the renovation expense. The landlord or homeowner will foot the remaining one-third. Those from low-income households will get the maximum amount which is £10,000. In this case, the grant will cover all the expenses. Important to note is that non-domestic properties and new build domestic properties are not eligible.
How to apply for the green grant scheme
The whole process is divided into three sections. In the first step, you must find out your eligibility from the Simple Energy Advice (SEA). The agency will also show you the energy-saving measures that your home needs and can be covered by the voucher. Next, you’ll need to find registered tradespeople either from the Microgeneration Certification Scheme (MCS) or TrustMark for a quotation of the work involved; to be on the safe side, get at least three quotations. The last step involves applying for the grant online, Matthew Cullum property can provide more information on how.
The home grant renovation measures are into two categories; primary and secondary. You must apply for one of the primary category measures to be eligible for the secondary category. In addition, the cost of the secondary measure must be less than the primary measure.
Once you get the voucher, you have up to three months to finish the renovation. However, if the three months elapse and you are not done because of unavoidable circumstances, you can request an extension. The green homes grant scheme ends in March 2022.
As you work your way to secure this one in a lifetime opportunity, please note that there are areas that the grant doesn’t cover. This includes innovations that are not geared towards energy efficiency, renovations you started before the announcement of the green home grant scheme, home extension projects, solar photovoltaic, and gas boilers. In a nutshell, the grant can only be directed towards the energy-saving measures outlined in the primary and secondary category.
This project is part of the bigger picture of the green industrial revolution. The treasury predicts that families that will take advantage of the voucher and renovate their homes can save up to £600 on utility bills annually. Plus, this project will help towards the reduction of carbon footprint. Landlords can be assured that their property will appreciate because of the eco-friendly home improvements. Green homes are sustainable, and you will be doing yourself a favour more than saving the environment by embracing eco-friendly homes. Register for the Matthew Cullum property blog regular market email for more information.
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