I went to an estate agency which is actually owned by one of my students, Rahim to see and learn how he’s doing as of now.
In this article, Rahim takes us through his journey and hope you’ll get to learn something through his experiences.
Rahim was glad to see me as I’ve been a crucial educator for his success through my mentoring and positive energy.
Q: How have you been Rahim?
I’m doing great!
I’m here almost every day because i don’t see my business as a business but see it as a hobby and that’s why i come in sometimes, i mean, from eight or seven in the morning.
Thank you very much Samuel for the visit because you’ve basically taken your time into coming here to talk to me.
So, our property market was doing really well before Kobe and for the last two decades, property prices have gone up by 240% which is just amazing.
This area was one of the lowest capital appreciation area for the last few years and it has become the best as property prices went from, say, hundred thousand to two hundred thousand in such a short time.
This area within the last two years was only impacted by the coffee planting as the property sales plummeted and now it has picked up.
20 years ago, they actually destroyed all sort of factories that they had there and built apartments all the way at the end of the road hoping to get celebrities to to buy them but then in 2008, we had a recession and then the prices went down and people picked them up for next to nothing and now they’re worth a lot.
I’m eyeing several luxury apartments here as we’re absolutely killing it if we get one.
Q:What are the rules about service accommodation in this area?
Well, there’s no specific rule at the moment as they haven’t brought any of the rules from the UK as far as I’m aware to Cardiff.
You could rent out your property as it’s normal to let and then do whatever you want to do with it.
I have both Hmo’s and rent to rent because if stuff like this happen, you could easily let them out because what i did was that i secured good deals on my essays and i was able to actually rent them out of snow mallet and still make profit out of them.
I’ve got loads in terms of students but the mentoring side of things, I only want to take a maximum of 12 people because i want to provide that one on one teaching so that i can add a lot of more impact that’s positive rather than having too many/
Our houses in this area are basically HMO properties as 90 of them are Hmo’s.
Q: On average how much does one rent to rent property make you?
On average, maybe five to six hundred pounds.
When it comes to setting up a rent to rent,it depends on the condition as what i tend to do is look for properties that can add value.
We don’t mix our tenants as you have to be working or doing a master’s program for you to be able to live in our house.
Instead of getting just any student, what i do is get a masters or PhD student that would look after the property and that way, they also stay longer because most of the PhD and master’s students have got 18-months programs and so once they’re in, they’re there for at least 18 months which means I can easily just rent and forget about the house for sometime knowing that it’s in good hands.
Whereas if you’ve got normal students, they’re only there for about six to seven months of the year and then the property will be vacant because there’s no school as they will go back home.
I used to spend lots of money in the common areas but what I’ve learned was that people don’t use it as you can see here in Cardiff.
With Hmo’s, it’s actually an advantage to have a very low maintenance garden of course which is always an advantage and if not, then you’d have to get your gardeners around because if most people are buying a house to live in, you might think, oh this garden’s not very good but for a HMO, it’s better because the tenants don’t spend time out here and so, it’s low maintenance which means no money spend.
We’ve also handed other properties back to the landlords reason being, the landlord is looking to sell and i did not do a good negotiation and this was before the deal finding extravaganza.
Basically, i don’t think it could do a good negotiation because i was subsidizing it with other properties that the landlord referred me to and so obviously because he referred me to about five other deals, i might as well take that now and keep it until when i cannot do it which means I’ve got eight properties with this particular landlord.
I also think that it’s important to hand it back in good quality because I’ll maintain the relationship with the landlord.
Q: When you did the advanced training, you thought Hmos wasn’t the best deal in the world, why have you kept it for so many years if this deal wasn’t really that great
Because one, I’ve signed the contract and i don’t want to deceive the landlord as I’ve agreed to the contract.
For me, my words are my bond and if i said yes to you, it’s going to be a yes and obviously, i was able to also convince him to say that and if he could refer me to other landlords, i may be able to keep the property because i can use the profit i make from those to actually subsidize this one because this was actually making a loss.
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