Stick, twist or just trade places…?

Posted on 3rd September 2018 by Adam Mackrell

As this amazing summer weather we’ve had draws to a close and the children are due back to school (Yes!! Do not tell anyone i said that) People we are speaking to tend to get a bit more serious again, Its almost like it’s new year and resolutions are being made once more. The traffic of opportunities – as well as the actual traffic on the roads – will rise again. We believe and we hope the investment will too, there are a lot of good deals becoming available.

We have spoke to a number of new investors recently and I have to say there is I feel way too much caution out there, we have a lot of procrastinators – maybe they’re perfectionists? Who want to sit, wait and hold and almost seem desperate for world war three to start so they can say “I told you so”… I have shared with our team and with potential investors and partners that if people are investing in space – yes outer space! Then surely we can attract more investment this year to continue to reach the objectives of our partners and provide more great accommodation to our end users! Looking at investors in Space recently as i did. it reads like a who’s who of modern day Tycoons, but the numbers and the likely outcomes are appalling bad.

Our numbers however are admirable and our very likely outcomes are in fact excellent in comparison. So if any tycoons out there want to stick 1% (£2M) of what has been allocated to the intangible, poor yielding, not exactly easy to visit & check on Space investment. And instead work with us on the tangible, bordering the obvious or even come visit and see, why not even touch your investment, then sign up before leaving the website!

There you go thats my shameless bit of pumping!

Oh no here is a little more…

The latest £1.95M invested in the fund is producing 145K in annual yield for our partners and has been independently RICS valued at 2.5M – whats not to like?

So lets look at what else is going on with part of our DNA…

Rents…  RICS Royal institute of chartered surveyors suggest and believe that Rent will rise for at least the next five years year on year across the board see here Rent rises

London bashing again…

London house prices that are over £1M (which is a big chunk of them) are being sold at a massive discount often 20% or more is being slashed, some sellers (wholesale) are doing buy one get one free? It’s insane and lots of people are getting burnt, additionally we believe the same thing will happen with new build over priced apartments nationwide – with none of the major features that families like or need – over the next few years as the ratio of family houses reaches an all time low.

Estate agents  X, Watch out for a common but not often talked about clause re: commissions for estate agents when selling… “the introductory clause” is being slipped in increasingly and causing some problems as our old friends the estate agents get increasingly desperate to find ways of recouping all that un justified revenue of years gone by. When you switch agents because they can’t sell your asset/s you realise you’ve already agreed to pay them no matter who sells it – Please check and see here

Another movie reference

Lastly a fave movie of all time of mine is “Trading Places” with Eddie Murphy (prior to being done  for tax fraud) and Dan Ackroyd. Its like a guilty pleasure… But while trying to explain to my kids – and covering their eyes on the rude bits – it actually teaches us a lot about equity / commodity market efficiencies. The key moment being when the brothers bail Valentine (Murphy) out of jail and explain how they operate their business to which Valentine replies ” Sounds to me like you guys are a couple of bookies” nailed it, didn’t he! There is also a lesson for the investors in this kind of asset class and market. Lets face it when I lose money on the markets i say things like its just a form of gambling… When actually that is the truth all “odds” are a pretty accurate reflection of probability otherwise “bookies” would go bust right? However irrational behaviour comes from us mere mortals and thats where the opportunities are. The movie concept also has some links to a real life look at Paul Tudor

Richard Dennis selected him from basically nothing and look what happened! Morale of the story don’t put your portfolio heavily in to stuff like that… Or in Space.

Come and see us instead.

Adam Mackrell

Director

Oxford Spires Group